Tire Dealers

What Does GL Code 18616 Cover?

ISO GL class code 18616 specifically covers businesses engaged in the retail sale and installation of new and used tires for various vehicle types, including passenger cars, trucks, and commercial vehicles. This classification includes operations such as tire mounting, balancing, rotation, and repair services, as well as the disposal of old tires. It addresses the general liability exposures associated with these retail and service activities.

Who Uses This Class Code?

This code applies to independent tire shops, automotive service centers specializing in tire sales, large retail chains with dedicated tire departments, and commercial tire service providers. Examples include local tire stores, national chains like Discount Tire or Firestone Complete Auto Care, and mobile tire service businesses.

Common GL Claims for This Class

Common claims for tire dealers include property damage during installation (e.g., scratching rims, damaging vehicle components), bodily injury from falling tires or equipment, and product liability claims stemming from tire failures after installation leading to accidents.

Coverage Tips for Code 18616

• Ensure your policy includes product liability coverage for the tires you sell and install, as defects can lead to significant claims.
• Verify that your general liability policy extends to off-premises operations if you offer mobile tire services or roadside assistance.
• Implement strict safety protocols for tire inflation and handling, as improper procedures can lead to explosive claims and severe injuries.
• Regularly review your property coverage to account for fluctuating inventory values, especially for high-value commercial tires.