Table of Contents
- Understanding Claims Prevention is Crucial for Your Auto Shop’s Success
- Your Role in Preventing Claims
- Safeguard Your Business
Understanding Claims Prevention is Crucial for Your Auto Shop’s Success
Accidents can happen at any auto repair shop. While you can’t completely avoid them, regular maintenance, thorough employee training and talking to your insurance broker can help to prevent potential accidents and claims for your auto shop.
Your Role in Preventing Claims
Property Maintenance:
Ensure regular grading is performed on the hard surfaces surrounding your garage. Failure to do so can lead to issues like potholes or sinkholes, potentially damaging your customers’ vehicles. Establish a routine of regularly inspecting your garage for potential problems or necessary maintenance, for instance verifying that the work area remains well-lit and that no lights are broken or burnt out.
Environment and Climate Change Requirements:
Environment and Climate Change Canada enforcement officers may conduct random inspections of your garage without warning. If they find that your shop fails to comply with federal environmental laws, your business could incur fines, compliance orders, and potential prosecution for severe violations. To mitigate these risks, ensure that your garage has a plan for handling and recycling biohazardous materials. Keep the work areas clean at all times. Oil spills can happen frequently, so it’s essential to have materials like gravel or sand readily available for quick cleanup. Additionally, make sure that all employees are familiar with the cleanup procedures and the location of necessary equipment for handling toxic materials.
Employee Training:
Incorporate common practices for all employees to follow in your workplace. This includes regular employee training on safety, fire safety, biohazard disposal, and general operational procedures.
Final Inspection:
Always and without exception, have a final inspection done by a licensed technician before a vehicle is returned to a customer. Sometimes, inexperienced or trainee employees may overlook this step. If a job isn’t completed properly and an accident occurs, such as a tire falling off the customer’s car while driving on the highway, your auto shop could be held liable.
“It is often easy to overlook final checks and verifications for tasks that are performed on a daily basis,” says Unica’s Underwriting Specialist, Sean Baker. “However, this critical step needs to be adhered to every time in order to prevent potential liability claims and to protect the reputation of your business.”
Communicate with Your Customer:
In the case where a customer is selective about the type of repairs wanted, be proactive with your communication. Communicate with your customers about potential issues and any recommended repairs. Communication can help address problems before they escalate and prevent claims for your auto shop.
Your Auto Shop Is Located at Your Primary Residence:
Install a gate around your property, and if you have a guard dog, ensure that the dog is secured when customers and people are around.
Safeguard Your Business
By following these prevention tips, you’re ensuring the safety of your business, employees, and customers. Speak with your broker to confirm that you have adequate coverage to protect both your business and the value of the customers’ vehicles you are repairing. Additionally, inquire about including a pollution exclusion in your policy to limit your liability.
To learn more about protecting your auto repair shop, consider Unica’s Specialty Auto Services Connection™—a comprehensive solution that protects your physical assets, business income, liability, and employees all together under one policy.
