Preparing your dealership for severe weather events.
Aaron Lee, Senior Director for Ally Dealership Insurance, shares practical, actionable steps auto dealerships can take to help protect your inventory, staff and business operations from increasingly unpredictable extreme weather.
Preparing your dealership for severe weather
Extreme weather events — such as the devastating wildfires in California and flooding in North Carolina — are happening more often and with less warning, affecting dealers nationwide. Aaron Lee, Senior Director for Ally Dealership Insurance, has more than 21 years in the auto business and works with the team that helps dealers across the country with insurance claims tied to severe weather. Lee outlines several practical steps dealerships can take to prepare before conditions worsen and to respond more effectively when storms hit.
Watch for shifting weather trends
In recent years, weather has become more erratic, with flooding, fires and hail impacting regions that historically weren’t high-risk. Dealerships can help reduce surprises by tracking forecasts closely, setting internal triggers for action and staying adaptable as conditions change, Lee said.
Build or refresh an emergency plan
All dealerships can face unexpected and severe weather. “Be ready to take action,” Lee said. A solid plan should spell out:
Evacuation steps and communication expectations
On-site safe areas plus a second secure meeting location
Detailed relocation or safe parking arrangements to move inventory if needed
A clear contact list and designated emergency leadership
Defined responsibilities for each team member
Ahead of storm season, dealers might want to update the plan to account for any staffing changes, new phone numbers or email addresses, upgraded communication tools and any changes to safe parking or relocation options.
After an event, Lee advises teams to hold a quick review to capture lessons learned and adjust the plan accordingly.
Back up critical data and documents
Before severe weather arrives, a best practice is to secure key business records and operational documents. Keep copies in a separate protected location and back up essential systems to the cloud to help speed up recovery if the dealership experiences damage to files or disruptions to connectivity.
Move early to protect inventory
“When high wind and flooding are in the forecast, timing matters,” Lee said. Dealerships often see avoidable losses when vehicle relocation starts too late. If there’s a credible threat, begin moving inventory early to higher ground or covered areas, while keeping employee safety as the top priority.
Discover the steps Blade Chevrolet took to prepare their dealership and secure 100% of their inventory.
Review insurance coverage annually
Lee recommends reviewing insurance coverage at least once a year to confirm it matches current inventory levels, locations, evolving risks and any exclusions. Waiting until after a loss can reveal costly gaps. A review with a local Ally Dealership Insurance representative can help ensure coverage aligns with today’s exposure.
Remember your own well-being
After a disaster, it’s easy for dealers and their leadership teams to burn out by focusing entirely on reopening quickly and supporting others. However, leaders are more effective when their own physical and mental health needs are also addressed.
“Dealers should take care of themselves so they can best help their teams and their communities recover. They can then build in time for recovery, check on employee well-being and ensure leaders have the support needed to guide the team through cleanup and reopening.”
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