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Customers are the lifeblood of your business – but they are also a risk.

That’s strange to think about, I know.  Customer lawsuits? That’s not what we typically think about when we think of customers.

Without customers, you wouldn’t be sitting where you are now, probably reading this at your desk in your dealership or at home with oil still staining your hands from a long day at work.

But the risk is real.  There are lots of ways that a customer can go from a vital partner that keeps you in business to a massive threat that takes money away from you and your dealership or auto body shop.

The primary way that this happens is through lawsuits.  We will mostly get into the kind of lawsuits that auto businesses experience from their own customers, how you can minimize the risk, and how your garage insurance policy protects you.

So buckle up, hold onto your hat, and grab your favorite beverage.

Or better yet, grab a mop.  Because the first risk is slippery.

Slips, Falls, and On Site Accidents Lawsuits

This is probably the first thing you think of when you think about a customer or potential customer suing you.

I mentioned Slip & Fall injuries in my blog on The 5 Most Common Claims in Garage Insurance, and it really is a common occurrence.

Over a million people go to the emergency room every year for slips and falls, and you can bet your business that not all of them occur at home.

In fact, if you search for “slips and fall lawsuit” there are TONS of lawyer websites educating people on how to start legal proceedings against businesses.

These sites walk a  person through if they can sue or not, how they can sue, and even WHOM they can sue.

Nolo.com says:

If you slip because of some structural issue with the building, your claim would likely be against the landlord/property owner. An example of a structural issue would be a water leak. If water is leaking from the ceiling onto the floor, that is usually the landlord’s fault.

But if you slip because of something that the store owner/tenant did (or did not do), then your claim would be against the store owner. An example of a claim against a store owner would be slipping on a floor that the store owner’s employee had just waxed, and there were no safety cones or warning signs to alert customers of the danger.

Yikes.

Make sure you take all necessary precautions to avoid slippery areas in your showrooms or shops, and avoid uneven surfaces or dangerous piles of supplies in areas that customers frequent.

But, if something does happen, your business will be protected by the General Liability part of your Garage Insurance policy.

So we’ve got you covered.

Faulty Work Lawsuits

This is one of those risks where some business owners laugh it off and others are absolutely terrified.  It seems crazy, but it happens more than you’d think.

So what is the situation?

Your body shop or service center makes repairs on a vehicle.  The customer either has further problems with it or, worst case scenario, is involved in an accident.

In both cases, they blame you or your workers for the problems or accident, saying faulty work caused the damage.

In legal terminology this is all about “negligence,” or whether or not you or your employees didn’t perform the work correctly.

If a court determines that you or your staff didn’t perform the work properly and were negligent, then you will have to pay damages.

While this typically is just a small claims court situation, it can balloon into something huge if the faulty work causes an accident.  You could be on the hook for ALL of the damages in the entire wreck, including anyone else involved or hit.

Of course, I don’t have to tell you how to avoid this.  Everyone knows that a person’s good name is the most valuable marketing tool you will ever have.  We all want to be known for doing great work for a reasonable price.

And, if something does happen, your General Liability coverage will save you again under something called Products-Completed Operations Exposure.

One of the great things about Liability coverage is that it covers court fees even if you aren’t found guilty.  Frivolous lawsuits can cost you just as much in court costs as real ones.

Predatory Selling, Lending, or Fraud Lawsuits

I sincerely hope that you read this part and think, “What in the world?  Who would do that?”

But the fact of the matter is that some customers, rightly or wrongly, believe that some dealers or body shops are dishonest and charge them more than is fair.  And they sue in retaliation.

Not only that, but other selling techniques or lending practices have also drawn lawsuits.  Almost all of these involve customers feeling they were lied to or taken advantage of.

And sometimes, they win these cases.

Earlier this year two car dealers in New Jersey found complaints by customers go all the way up to the state, leading to the State Attorney General to sue them.

The Courier Post says:

[T]he dealerships preyed on “financially vulnerable” customers, selling them over-priced cars with high miles, pressuring them into in-house loans with severe penalties.

 “Then (when the buyer defaulted), the dealerships reclaimed and resold the vehicles over and over again to different consumers in a practice known as churning,” he explained.

These lawsuits don’t even have to be that black and white.  One law blog says that fraud is a reason to sue mechanics, claiming that, “[I]f you discover your mechanic has charged you for service or parts he didn’t provide you may be able to sue for damages.”

While instances like this may be a big misunderstanding (as customers often don’t know what parts are what and wouldn’t know if they were used), they can still result in lawsuits.

And just like our example above for faulty work, a fraud claim can go to court even if it is complete bull- I mean frivolous.

The good news is that your General Liability coverage will take care of you here, too.

Even if the claims against you are absolutely bogus, the GL part of your Garage Insurance policy will pay court fees and any damages that result.

Don’t make customers turn on you.

Obviously, a lot of these incidents are caused by slack effort, lazy work, or downright deceitfulness.

Being as professional as possible, keeping a clean work space, and keeping records of all work and payments will go a long way to avoiding these lawsuits.

You want customers raving about you – in a good way!  Make them fans, not enemies, to keep your business thriving.

And if something does happen, make sure your coverage is in tip top shape to keep your dealership or body shop trucking along.

Is your Garage Insurance ready for a lawsuit?

If you haven’t looked at your policy in a while, or you need a new agent, it’s time to talk to someone here at Alliance Insurance.

We have Garage Insurance Experts who help people just like you have world class protection, no matter how big or small your business may be.

Let’s set up a conversation to make sure you’ve got what it takes in case one of your customers decides to take you to court.

Click the link below, and let’s take some action.

Most dealers and mechanics try not to think about auto theft.

It’s the dark side of the auto industry, the dirty secret that no one wants to think about.

But cars and trucks are one of the most targeted stolen pieces of property that there are.

In 2017, there were 773,139 vehicles were stolen in the United States.  That’s a staggering amount, and it has only gone up in the last three years.

Most of us know someone who has had a vehicle stolen, or have even had it happen to us.

But I know most of you are reading this and thinking, “Okay, this stuff is all true, but why is he telling US this?  We sell or work on cars.  Car theft is a personal issue.”

Oh how I wish that were true.

When it comes to people in the auto industry, auto theft usually affects you in one of three ways.

So let’s get into it, but let’s start first with the myths about auto theft and how they can hurt you.

Myths about Auto Theft

There are some surprising myths that still linger about auto theft.  Let’s tackle some of them.

The first is the Myth of Location: that auto theft is a big city problem, usually around cities on the coast.

This is absolutely not true anymore.

New York?  No.  Baltimore?  Nuh uh.  Chicago?  Nope.  DETROIT?  Not in the top ten.

In fact, only one of these cities is on the coast, and surprise, it isn’t one of the cities in California.  Only Anchorage, Alaska is on the water.  The rest of the California cities are inland, most in the agricultural Central Valley.

In fact, since 1967, the state of New York has seen a DECREASE of over 85% in auto theft.  The myth that auto theft is a big city issue is just not true.  Mid sized cities in economically challenged areas are the main drivers now for this risk.

The other myth we will debunk is the Myth of Technological Security: that technology and car alarms have made auto theft a thing of the past.

Unfortunately this is simply not true.

According to the Insurance Information Institute:

Despite the reduction in vehicle thefts over the past two decades, industry observers caution that thieves constantly devise new and sophisticated means of stealing autos. Tactics include acquiring smart keys, which eliminated hot-wiring to steal cars; switching vehicle identification numbers; and using stolen identities to secure loans for expensive vehicles.

More alarming is the finding that there were 229,339 vehicle thefts with keys or fobs left in the vehicles between January 1, 2016 and December 31, 2018. According to the NICB, this represents a 56% increase in vehicle thefts with keys or fobs in the vehicle from the 147,434 vehicles stolen in this manner between January 1, 2013 and December 31, 2015. The 2016 to 2018 vehicles stolen works out to 209 vehicles every day during those three years. The top five states with the most thefts with keys or fobs left in the vehicle during this period were California (31,185), Florida (17,300), Texas (15,511), Ohio (12,596) and Nevada (11,391).

While we think of criminals as being stupid and making bad choices, the fact of the matter is that they can be very smart.  All that technology protecting the car? They just steal the keys.  Or duplicate them.  Then click – doors open, ignition cranked, car gone.

So now that you know that this can affect you anywhere, and that new tech features can’t stop it, let’s look at how it affects you as an auto professional.

Stealing Vehicles from Dealers and Mechanics

This might shock you, but cars and trucks are stolen from auto dealers and auto body shops regularly.

These thefts span the entire range of dealers and mechanics, from huge, coordinated thefts of hundreds of high end cars from luxury franchise auto dealers to a forgetful mechanic leaving a newly fixed vehicle up front with the keys in the ignition.

And while personal auto theft is well tracked and documented, theft from dealerships and body shops is much harder to pin down.

There is not an easy list of statistics for dealership theft, though there is a long list of incidents that come out regularly.  The problem is that these issues remain local, and each locality assumes (often based on the myth of location I reference above) that this isn’t a problem that affects them.

Until it does.

Dealership theft can affect anyone, even in the fanciest, safest places.  Santa Monica, Texas, Ohio, and Pennsylvania have all seen crimes reported, some for millions of dollars in vehicles lost.

Most of these are professional thieves.  They can come from out-of-state, scope you out, steal keys when your overworked staff aren’t looking, then take off with the vehicles.  Or do the same thing at night and drive off with dozens of cars at a time.

And of course we have all heard of the theft of tires from dealerships, like this now sadly infamous dealer in Louisiana who saw 124 wheels stolen IN ONE NIGHT.

So believe it can happen to you.  If you’re a small dealer, you probably have very little security or staff to deter such theft.  And if you’re big?  Well, you’re a big target with lots of inventory.

So make sure you are aware that this can happen to you.  Auto theft is a very real risk for franchise and non-franchise dealers alike.

Stealing from Auto Body Shops

Thieves target auto body shops as well, but these are usually very different crimes.

With mechanics, auto theft is usually a crime of opportunity.  As you know well, it isn’t uncommon to walk by a body shop and see cars all over the place, some newly fixed or waiting to be worked on.  And some have the keys in the ignition.

Or, after hours, a lot of shops have the vehicles they are working on in the shop’s lot, out in the open.  These cars aren’t unlocked with the keys in them, but criminals know that the keys to them are usually just a broken window and a lock box away.

One of the biggest issues with these kinds of risk is that they are usually worse for the smaller shops.  If you only have one or two employees and you are working on several cars, it is impossible to watch all of them at once.

For bigger body shops, the issue is that you have a lot of cars under your protection all the time.  That creates a lot of risk, as you have more property under your protection.

And, regardless, you are responsible for that property.

That means that, believe it or not, you can be SUED if someone steals a customer’s car from your shop.

That’s right. If a customer believes that it is your negligence that led to their car being stolen, they can take you to court for damages.

So auto theft is a big deal for auto body shops.  Disagree at your own peril.

Working On/Buying/Selling Stolen Cars

I know, I know, you aren’t running a chop shop.  (Brilliantly explained HERE by our friends at Trusted Choice.)

But believe it or not, this is a real risk.  Someone brings a car to you to fix or to buy, and it is stolen.  And you have no idea.

Most of us have procedures in place to make sure we are dealing with the registered owner of the vehicle.

We run the VIN through something like VINCheck to make sure that the car isn’t registered stolen.  We check IDs and verify the identity of the owner.  In other words, we CYA.

But accidents happen.  Or maybe it’s too good of a deal to pass up.

But it could cost you.  Big time.

Anyone who works on, buys or sells stolen cars or trucks open themselves up to lawsuits and criminal charges.

No matter how good a deal is, or how well you know someone, always protect yourself and verify every vehicle that you or your business doesn’t own.

Does Garage Insurance Cover Me?

Absolutely.

No matter if you are a dealer or a mechanic, your Garage Insurance policy will protect you if a vehicle is stolen regardless of whether you own it or it is simply in your care.

Garagekeepers Coverage will reimburse you for cars lost or damaged due to theft.  Period.

And if you are sued as a result of this theft, you will be covered by your General Liability or Garage Liability, depending on the situation.

One warning though: If you are knowingly engaged in criminal activity, your insurance WILL NOT cover your legal expenses.

Insurance can cover negligence, such as accidentally leaving the keys in a customers car and it being stolen.  But insurance NEVER covers criminal negligence.

How Is Your Policy Looking?

After reading this, are you confident that your business can handle a big theft?  Or even a simple keys in the ignition fiasco?

Maybe it’s time to let someone new look over your policy and see if you’re protected from everything that could happen.  And with the right amount of protection.

It’s always a good idea to talk to someone like a Garage Insurance Expert here at Alliance Insurance.

We can go over your policy and show you the gaps and problem areas, making sure you’re fully protected.

We will also never recommend something you don’t need.  Ever.

So what are you waiting for?  Let’s get started.

No Policy Can Do Everything – Even Garage Insurance

Your Carolina Garage Insurance policy does a lot.  In fact, you probably assume that it does, well, everything.  These are complete packaged policies that are supposed to protect you from just about anything that life can throw at you, right?

And generally that’s true.  These policies are really awesome.  They protect you from property damage with Business Property coverage, from customers getting hurt with General Liability coverage, from Employees getting hurt with Workers Comp coverage, and from something happening while you have a customer’s vehicle with Garagekeepers and Garage Liability coverage.

That’s a ton of coverage.  But, honestly, it really isn’t everything.  So what does it NOT cover?

I’m going to highlight three major holes in your garage insurance policy.  One of them is surprising, because it shouldn’t be a hole at all – it’s kind of a loophole people try to use to avoid paying for more insurance.

The second is not always included in garage insurance policies and is a huge need in today’s business world.

And the third is a hole that most businesses say they don’t need because it will never, ever happen.

But, if things happened the way the majority of business owners thought they would, Alliance Insurance wouldn’t be in business.

So let’s dig in and go over these holes in your coverage so you can know what you need to patch up to be totally protected.

Commercial Auto Insurance Should Be Standard in Your Garage Insurance Policy

Boss, the delivery is going to be a little late.

You probably just read that headline and went, “What the heck?  I thought Business Auto was a normal part of the policy?”

And it should be.  But should does not always equal does.  Let me explain.

Some businesses look to cut down on insurance costs by claiming that they don’t have work vehicles.  The owner of an employee has a North Carolina weighted pick up truck for “personal” use, and if they use it to haul work materials or equipment, it’s not big deal, right?

Or what about another situation.  An auto dealer let’s a customer borrow a personal vehicle while their service center fixes the customer’s car.

Or when someone uses their personal van to deliver tires to a customer bought them in order to fix up their own hobby cars.

Nothing wrong with any of that, right?

Wrong.

If you use a personal vehicle for a work purpose, and there is an accident, you can be denied a claim.  Period, end of story.

If the weighted truck hits a mother and daughter on their way to daycare and puts them in the hospital?  You could be paying out of pocket for hundreds of thousands of dollars depending on the medical bills, let alone if there is a lawsuit.

This is a major issue that we hear about all the time.  And the sad news is that it is usually the smaller dealers and auto body shops that do this in order to cut costs.

It simply isn’t worth it to risk losing your entire business to one accident just to save a few bucks a month.

Employment Practices Liability Insurance Should Be Standard Practice

That “Just Filed a Wrongful Termination Suit” Feeling

One of the largest sources of risk that an employer has is from his employees.  But most garage insurance policyholders in North Carolina assume that with Workers Comp, they are covered from all of the bad things that can happen because of their employees.

This is so very, very wrong.

One of the most common lawsuits that happen to businesses come from your employees.  Employment Practices lawsuits cover things like Wrongful Termination, Sexual Harassment, and Toxic Workplace Environment.

I know some of you are probably laughing.  My employees suing me for telling them to do their jobs?  Or firing them for not showing up on time?  Give me a break.

But the numbers don’t lie.   As I say in my larger blog on this subject, 60% of employers have faced one of these lawsuits in the past five years.  Think about that.  Odds are someone you know has had an employee sue them.

You’re much more likely to have an employee sue you than you are to have a fire, or have lightning strike, or to have something stolen.  But you don’t think it is crazy to have insurance to protect you from those risks.

In fact, you’d be crazy not to.

So it’s time to see this risk for exactly what it is – a hole in your coverage that exposes you to one of the most likely causes of loss you can have.

Adding Employment Practices Liability Insurance (EPLI) to your North Carolina Garage Insurance Policy is just good business.

Excess Liability Coverage Should be Normal, Not Excessive

Oh, I think we can get more than $3 Million, Bob.

Language is powerful.  We see words and just expect that they mean what they say.  Take Excess Liability for example.

You may not know what that is.  And, if you just looked at the word, you’d probably think it is what it says, “excess,” especially the second definition of it according to Dictionary.com:

2 : undue or immoderate indulgence : INTEMPERANCE also : an act or instance of intemperance

But it’s actually this definition:

1a: the state or an instance of surpassing usual, proper, or specified limits

So what does that all mean?  It means that this is liability protection that goes beyond the specified limits of your General Liability or Garage Liability policy.  It’s EXTRA protection.

And not just that.  It’s a ton of it.  It’s SUPER protection.

Lawsuits are just expensive now.  That’s the reality of the world we live in today.  And if you have $1,000,000 in liability coverage a single accident involving deaths can lead to a lawsuit that blows through that coverage in no time.

Especially if a judge wants to make an example out of you.  Punitive awards can make legal costs skyrocket.

Excess Liability, also known as Commercial Umbrella Policy (still a vague antiquated term), kicks in when you run out of liability coverage on your other policies.  It can be for truly amazing amounts of coverage, too.

So, while the name implies that it is “excess,” the reality is that it is necessary in today’s business world.

But a lot of policies don’t include it in the standard Garage Insurance package.  Or business owners reject it because they are trying to save a few bucks a month.

This is life-saving stuff.  The risks that Excess Liability protects you from are business-killers.

Not having it is a major hole in your protection.

Do I Actually Need This Stuff?

I don’t know.

I know you’re saying, “Wait, what?  This guy just lectured me on all of this stuff and now he says I don’t need it?”

But there’s a reason.  At Alliance Insurance, we don’t want to sell you anything you don’t need.  Ever.

But if we don’t talk to you, how will we ever know if you need something or not?

Odds are you need this, that these coverages are big gaps in your North Carolina Garage Insurance policy.

But the only way you will know for sure is to talk to one of our Garage Insurance Experts.

So click on the Next Step below and let’s get you talking to someone who could save your business.  Literally.

Isn’t one Garage Insurance Policy just like every one else? In North Carolina or wherever?

All Garage Insurance policies have similar coverages, but each company has different standards and an agent can set it up in different ways.  And North Carolina policies are no different.

At the most basic level, each of your Garage Insurance policies will have the same primary features:

• Business Property Coverage
• General Liability Coverage
• Garagekeepers Coverage
• Garage Liability Coverage
• Workers Comp Coverage

But, as I’ve mentioned, different companies set up policies in different ways.  So let’s look at three companies we love and then decide who is our favorite (sorry to the other two!).

Travelers Auto & Truck Dealers Insurance

Chances are, you have probably heard of Travelers. They are one of the biggest insurance companies in the country, despite the fact that they don’t advertise and don’t have captive agents like other well known carriers.

What they do have is a massive array of insurance products, including a very, very good garage insurance package policy.  They are a great partner for us in North Carolina (though of course they write in every state).

Their “IndustryEdge for Auto & Truck Dealers” is a complete package of coverages that keep you in business no matter what happens.

This policy is helped by the fact that they are “one of the largest writers of commercial auto insurance,” so they know a thing or two about vehicles and the auto industry.

It includes all of the primary coverages that we mentioned above, plus the following:

• Commercial Auto Coverage – To cover the vehicles your business owns.
• Auto Errors & Omissions – Protects you from lawsuits that claim your work was faulty, either by negligence or fraudulence.
• Internet Liability – Basically Cyber Liability which I’ve talked about before.
• Employment Practices Liability – Protects you from certain lawsuits from employees (talked about HERE).
• Umbrella/Excess Liability – Extra liability coverage that goes over and above your regular liability policies so you don’t run out.

All in all this is an excellent solution for Garage Insurance.  They have an excellent claims service and will take just about any type of business that you may have, making them the most flexible of all of our three options.

So why aren’t they the best?  Well, because two companies are, in our eyes, just a bit better.  The next best is…

Auto-Owners Garage Insurance

Auto-Owners is a regional, mid-sized insurance company that operates in much of the Midwest and East Coast of the country.  But don’t let their size fool you – they are a phenomenal carrier and one of our favorite companies to do business with.

Maybe it’s the fact that we pretty much have the same colors? 🤔

While we write a lot of auto insurance and homeowners insurance with them, we also write plenty of business insurance policies with Auto-Owners in North Carolina.

And of course, we put a lot of our North Carolina Garage Insurance policies with them.

Their Garage Insurance has all of the base coverages that we discussed above, with the following additions:

• Inland Marine – Protection for your valuable business property like “tools, employee tools, laptops, machinery and equipment.”
• Dealer’s Blanket – A separate coverage just for your cars, trucks, boats and equipment.
• Tools & Equipment – Special coverage for the tools of the trade that your business owns.
• Mechanics Errors & Omissions – Protects you from lawsuits that claim your work was faulty, either by negligence or fraudulence.
• Drive Other Cars Coverage – Gives you auto protection similar to a personal auto policy while you are driving vehicles you do not own.

Not only do they have great coverages, they also have some pretty sweet deals.  They have:

• Dealer’s Blanket Reporting Form – This gives you a discount and coverage bonuses if you “report your dealership inventory every month.”
• Life Multi-Policy Discount
• Group Discount – If you are a member of certain qualifying groups such as a “chamber of commerce, credit union,” etc.
• Dispersion Credit – If you have a number of buildings all on one policy, you may get a discount for it.

They also have top notch claims service and are easy to deal with.  This is really a great policy.

So how are they not Number 1?

Because this company is:

Utica National

I’m going to be honest with you.  What I’m about to show you won’t make you go, “Woah, they are far and away better than the other two.”

Why?  Because there is no obvious coverage, or program, or discount that makes them superior (Though they do have one awesome coverage.)

No, Utica National is just… really, really good at Garage Insurance.  Especially in North Carolina.

The write all kinds of dealers, from the biggest franchise dealers out there to small non-franchise used car lots to motorcycle dealers – they CRUSH insuring Harley-Davidson dealers!

So let’s look at what they do.  For starters, they cover all of the basics that we discussed above, like the other two.

With ONE BIG EXCEPTION.

Utica combines General Liability and Garage Liability to give you blanket liability protection across your entire business. You can jack your coverage amounts up into the stratosphere and be fully protected no matter what happens or who sues you for just about any accident.

That is AWESOME.

Their other coverages go like this:

• Auto Dealers Errors & Omissions, which includes:
  – Federal Odometer Statute
  – Title Errors & Omissions
  – Prior Damage Disclosure Errors & Omissions
• Dealers’ Physical Damage
• Customer Rental Coverage for loaner vehicles
• Voluntary parting of a vehicle due to trick or deception

On top of all of these great features, they also have probably the best garage insurance claims service of any of the companies we’ve listed today.  In addition, they understand the auto industry on a deep level, the kind of easy familiarity that is built from years and years of doing business with people just like you.

We write many of our biggest accounts to Utica, and we can probably write you to them, too.

A lot of great options.

To be honest, any of the three companies I have mentioned are amazing at helping protect franchise dealers, non-franchise used car dealers, and auto mechanics or body shops survive and thrive after even the worst claims.

While Utica just edges it in terms of our favorite, we weigh each client carefully to see which company is the best fit.

So where would you go?  What would be the best company for you?

If you aren’t currently with Alliance Insurance, you may not have one of these companies, or you don’t have an agent that can look at all three of them easily.

We are lucky enough to have a fantastic working relationship with each company mentioned above.  And we love helping people just like you find the right coverage for the right price.

So go ahead and click below to follow the next step.  You need to talk to one of our Garage Insurance Experts and discover how insurance can stop being something you have to do, and something you can do to make you more successful than ever.

To Paraphrase an Old Saying: Claims Happen

They do.  No getting around it.  Claims hit our businesses no matter what we do, no matter how safe we are.  If they didn’t, you wouldn’t have insurance in the first place.

Now stop dreaming about that utopia on earth and bear with me for a second.

Your business, just like your home, is a place where things break, property goes missing, and people get hurt.  Life is just like that.

But what are the most common ways that you end up suffering a loss?  Or, put another way, what is the risk you are most likely to face if you have a claim?

Let’s just get down to brass tax: What bad stuff is going to happen, probably?

1. Slips & Falls – Oopsie Daisy

Welcome to Gravity Chevrolet

You probably knew this, but human’s walk on two legs.  We’re pretty good at it.  We’re runners, basketball players, long jumpers and gymnasts.  We’re great with the whole leg thing.

But it turns out that all those other animals that decided to stick with the four legged thing might be on to something.

According to the CDC, more than one million people in the US suffer from slips and falls each year, with the broader category of “falls” resulting in over 8 million emergency room visits a year.

That probably blows your mind.  And if you’re thinking that this must be people falling down stairs or ladders, you’re way off.  65% of these falls are on “same-level surfaces,” or your basic even floor.

If you are nervously looking around at your oil-slick concrete garage floor, then you grasp exactly what I’m getting at here.  Claims are just lying in wait.

Both employees and customers slip and fall or trip and fall in your auto body shops, service centers, showrooms and even the office spaces every day.

They even fall or trip in your parking lot.

Each one can result in a workers comp claim if it’s an employee, or a lawsuit if it is a customer.

Yikes.

2. Fire – Hot Wheels

That’s not what I meant by firewall the files, Mark.

Most of the people reading this blog work in surroundings that are concrete, steel and glass.  Fire is probably the last thing on your minds.

But check this out: A fire department sends out a truck to a fire every 24 seconds nationwide.

Fires happen all of the time.  They happen in homes, in businesses, and in cars.  While you may think your dealership or body shop is immune to fire, the simple fact of the matter is that you aren’t.

That’s why they are one of the most common claims around.

Between 2013-2017 there were 18,582 business fires that cost just over $850 million in damages.

And with all that gasoline and oil lying around, if you have a fire, things could get messy fast.

3. Repetitive Motion – The Daily Grind

So, like, work?

Whether we work in the front office, or in sales, or work on cars themselves, we typically do the same tasks day in and day out.

Those tasks can cause injury without the proper posture, environment and breaks.  In an industry as physically demanding as the auto industry, those can seem like a luxury.

Office staff, sales staff, mechanics and more can get injuries like carpal tunnel syndrome, tendinitis, back pain and other injuries.  And they can cost you big.

One site (by lawyers that would love to see you in court) said: Repetitive motion injuries cost employers an estimated $80 billion a year.

These injuries are super common and happen to all kinds of auto businesses.  So make sure you are aware and have a plan on how to prevent these avoidable claims.

4. Collision – Wham Bam Thank You Ma’am

How did the break test go, Larry?

Sometimes it seems like cars and trucks are magnetized.

How else can you explain the fact that there are 6 Million auto accidents every year in the U.S.?

You may know this better than most people, especially if part of your business is fixing these cars after an accident and getting them back out on the road.

But knowing how likely they are, you have to know that even driving a car around the block to see if your repairs are working exposes the vehicle and your employees to danger.

There is a reason why Garagekeepers Coverage for Garage Insurance exists.  Damage to customer’s vehicles while in the care of an auto professional is so common they literally had to create a type of insurance for it.

And Garage Liability is for when those accidents are your fault, or the fault of your employees.

So watch out for cars or trucks in your parking lot and on the streets around your showroom, service center or shop.  You never know what could happen.

5. Overexertion – Push It

Odds are most of us have seen a fellow employee (or sometimes even a customer!) bend over, pick up a box of something, and hurt their back.

I have personally witnessed a co-worker joke about this injury, bend over to pick up a 50 lbs box, pick it up and, of course, pulled a muscle in his back.

These kinds of on-the-job or at your business injuries are called overexertion, and they are incredibly common.

They are the second most likely injury to send people to the emergency room (after falling, #1 on our list).

According to the National Safety Council: “Over all age groups, whether work-related or off-the-job, hospitals treated 3,132,271 overexertion-related injuries in 2014, and the trend doesn’t seem to be going downward.”

The auto industry is particularly set up to have overexertion issues, since the tools, parts, and supplies for your work often are heavy and awkwardly shaped.

Add to that the fact that many are slick with oil or some other kind of grease and you have things falling out of your hands while you instinctively try to catch it before it hits the ground.

Selling and fixing cars and trucks is a physical job, with lots of moving around, lifting, bending over to lean into a car, or crawling under a car over and over again.

The opportunity for an accident is there each and every day.  That’s why this type of accident is one of the most likely you will face.

Notice A Pattern?

If you noticed that a lot of the accidents above involve employees, then you’re absolutely right.

Employee-related claims are unfortunately all too common.

Your employee can be the one in the accident, like a slip, repetitive motion injury, or lifting injury.

Or they can be the one causing the injury, such as hitting someone while test driving a vehicle.

So, if you take nothing else away from this list, you should come away knowing you need to check on your Workers Comp policy to make sure you have the right coverage.

Workers Comp claims are probably the most likely source of trouble you’ll ever have to deal with.

And even though it didn’t make the list, employees suing employers for violations or harassment is becoming more and more common.

That’s why EPLI is becoming one of the more popular new coverages in the auto industry.

Are You Prepared?

At some point your business will have a claim.  No matter how careful you are, that’s just the math of it.

Make sure you have the coverages you need, and with the right amount of coverage, so that you can weather the storms when they come and move forward successfully.

It’s time to make an appointment with a Garage Insurance Expert, like the ones here at Alliance.  They can go over your policy with you in detail and find the gaps where you are exposed to dangers you may not even be aware of.

And they can probably save you some money in the process.

So what are you waiting for?  Click the link below and let’s get started.

How long has it been since you’ve checked the oil for your Garage Insurance?

Proper maintenance is the key to pretty much anything you own.  Your car, your house, your business, even your marriage – though I’m no marriage counselor (but take the spouse on a date once in a while, y’all).  Garage Insurance is no exception.

But the fact of the matter is that when that thing you own is insurance, people don’t want to look at it.  They think it’s boring, or worse, they think they don’t need it so they ignore it and pay as little as possible.

Usually, that attitude doesn’t affect your life.  But if something happens, you could find yourself owing a ton of money because you found your insurance policy too dull to bother with.

Just like a person who hates working on their own car, you still need to change the oil and get a tune up every once in a while.

But how do you know?  When is a good time to review your policy?  What should you look for when you do?

Great questions, even if I asked them for you.  So let’s check it out and see when you NEED a garage insurance tune-up.

1. Your Garage Insurance has cobwebs.

But my policy is a classic.

When you open the hood of your garage insurance policy, does dust and cobwebs fly out?

When is the last time you reviewed it?  Last year?  Three years ago?  Are you wondering what the heck an insurance review even is?

Just like cars, your policy can age over time, leaving your coverage outdated for the business you currently run.  The coverage you had when you first started may not be enough if you have grown and expanded.

Imagine if you had a garage that serviced classic cars try and work on a Tesla.  The result wouldn’t be pretty – and would cost you more money than you can imagine.

Coverage needs to be updated to grow with the business it protects.  And it’s more than just adding a new building if you buy a new property.

Times change, and so do coverages.  Make sure you get a review if you haven’t looked at your policy in the last three years at a minimum.

2. You’re an insurance tinkerer.

I built my policy myself.

Are you a do-it-yourself kind of person?  If you’re a mechanic, you probably are.  Even if you sell cars for a living, you’re probably a businessman that thinks that you can handle any business problem yourself.

And you may usually be right.  But when it comes to insurance, you’re playing with fire if you put your own policy together.

If you found something online that let you get a policy, or even worse, get some coverage here and some coverage there, all without an agent, you are gambling with the future of your business.

It would be like someone who doesn’t know cars starting to do all their own maintenance work, or even trying to build their own engine from parts they bought online.

If someone walked into your business asking for help and said, “Well, I watched something on YouTube so I know how to fix it,” you would be terrified.

Make sure you get an agent to review your coverages and have them all in one place.

Just like having a professional mechanic servicing a modern car, truck or motorcycle is a must, having a professional insurance agent help you build and maintain your policy is key to keeping you up and running in case of an accident.

3. You have coverage with several companies.

My coverages are all over the place.

If you have your buildings covered with one company, and your business vehicles with another, and your Garage Liability with someone else, chances are you’re in trouble and you don’t even know it.

You wouldn’t advise your customer to have one person work on their engine and another work on their shocks and another work on their tires and another work on their transmission – even though a ton of customers do just that.

Different auto businesses and body shops specialize in certain types of parts or repairs, but there is nothing like having a service center or mechanic that knows your car inside and out.

If your coverages are scattered, each agent or company may not know or understand what is covered by someone else.  This is a recipe for coverage shortage, leaving you exposed to risk.

One company may assume that you are covered by someone else for a key item, and if something happens, you have to pay out of pocket when it isn’t covered.

Make sure you get at least one quote for EVERYTHING with your favorite agent *coughs Alliance* so they can cover your business as a whole, with nothing left out.

4. You know you are short on coverage.

Have you ever heard someone say, “I can probably get another 5,000 miles out of it.  Mechanics just want your money.”

Or, “The tread isn’t that bad.  I’m not paying another $300 for tires so I’ll just drive on them for another year.”

Did that make you cringe?  Now you know how we feel when someone says:

“I’ve got $100,000 in General Liability coverage.  No one is going to sue me for something.”

Just like the person who never gets an oil change, you probably know, deep down, if you are under-covered.

People talk themselves into not spending money in a variety of ways, but when it comes to your car or your insurance, the costs can be tremendous.

If you have barely enough coverage to handle even a basic accident, you need to talk to an agent immediately to get a review and see how inexpensive it is to be properly covered.

And oil change or new tires is far less expensive than ruining an engine or getting into a car wreck.

A new policy with the right coverage is far less expensive than a lawsuit for someone getting hurt on your property.

5. You don’t like your Garage Insurance agent.

Sorry Dan, I have to go. I’m late for Pilates.

Not everyone gets along.  It’s just a fact of life.  Different personalities are everywhere, and some just aren’t compatible.  (Again, not marriage advice – but buy her flowers.)

You may not like your garage insurance agent.  There, I said it.  He or she may be super nice, super knowledgeable, and you still hate their guts.  That’s just the way it is.

If that’s the case, then start calling around and getting quotes.  Today.

Imagine if someone hated their mechanic.  If their car started acting up and they were worried, they may not take it to the shop just to avoid the person who can help them.

As I’ve already said, people don’t want to talk about insurance.  Lot’s of people hate buying a car or going to the body shop.  They find it stressful.

If you can’t stand your agent, then contacting them with something you want to avoid is a problem.  You will probably avoid insurance entirely.

Then, if something happens, you’re unprepared.

So find someone that fits YOU.  Hopefully (shameless plug) someone like us at Alliance Insurance.

Now what?

Well, you probably found one of those five topics that fit you.

So it’s time for you to get another pair of eyes on your business to find where you need coverage, and where your weak spots are.

Why not go with someone who specializes in Garage Insurance, someone that has two Garage Insurance Specialists who can roll up their sleeves and get to work for you – just like they have for so many businesses just like yours.

So click the link below and lets set up a time for you to talk to someone who gets you.

The time to be proactive is now.