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It�s Your Lot Make Sure You Have it Covered
February 5, 2013 — arm_insuranceIt�s Your Lot Make Sure You Have it Covered
January 15, 2013 — arm_insuranceIt�s Your Lot Make Sure You Have it Covered
January 15, 2013 — arm_insuranceTornado Season! It�s Early This Year, and Ferocious
January 4, 2013 — arm_insurancehttp://myemail.constantcontact.com/Holiday-Gift.html?soid=1102184412634&aid=ZDdWbakK6YA
December 18, 2012 — arm_insuranceDishonesty: Minimizing Risks, Losses from Employees
December 14, 2012 — arm_insuranceTerrible Tornado Trends
April 17, 2012 — arm_insurance
“A car would need to exceed 70mph in order to outrun the fastest tornadoes, and the most powerful tornadoes occur right here in the United States.”
Tornado season is early this year ~ and it is Ferocious!
Learn how understanding insurance coverage and being prepared for no warning can help soften the blow
The tornado season of 2012 has started early with record setting results. Property damages have been extreme and the emotional toll caused by them is devastating. The insured losses from the February 28 to March 3 deadly tornadoes are estimated to go as high as $2 billion.
Within the first few days following this storm system, one insurance company received over 6,000 claims. This storm system caused more tornadoes in a few days than we normally experience in a month and the tornado activity so far this year is almost double our recent yearly averages. What makes tornadoes so challenging is the suddenness of their formation and their strength. Most people have very little, if any, warning that they are in the path of one and the intenseness of the storm really does not allow many preparations to be made that will minimize the damage. The best approach is to make sure you have a safety plan in place and that you are as prepared as possible for dealing with the aftermath. This includes actions you should take before the storm and after.
Adequate insurance coverage for your property will certainly help you manage the consequences of these types of storms. You can help prepare for storms such as these by making sure you fully understand your policy coverage and limits. This should include the knowledge of whether your policy includes coverage for items like business interruption.
As important as the designation of a safe place for yourself and employees is during this type of emergency, it is just as important that you designate a safe place for your documents and have an established disaster recovery plan in place. These documents should include your policy as well as a timely inventory of your assets. Recent photographs of your buildings and other property are very helpful in supporting any claim made for damages. The days following a tornado are extremely stressful and it is a great benefit if those documents are readily available to assist in the filing of your claim.
During this stressful time one needs to take care to follow the instructions of your insurance company. Report the claim immediately by phone and then follow up in writing stating the damages for which you are filing the claim. Make sure the contact numbers you give your insurance company are ones that are still in operation and that those numbers will be monitored. Another important step you can take to facilitate this process is to document this claim yourself before the adjuster may be able to see it. Having receipts, inventory records, invoices and repair estimates readily available for your insurance adjuster will help accelerate resolving your claim and minimize any disputes. Taking your own pictures soon after the damage can be very beneficial especially in the case where the overall damage is excessive and there may be a delay in response.
In addition to reporting the claim it is your responsibility to do the best you can to protect your property from any further damage. Do not dispose of any of the property or begin any clean-up until your claims adjuster has had the opportunity to inspect it or give his approval.
Cooperate fully with the adjuster, as it is your responsibility to make yourself available for interview and to provide any documentation requested. When the adjuster does appear on site, make your case for the damages you incurred based on your knowledge of your policy coverage and then let the adjuster do their work to assess the disaster site. During your initial contact with your adjuster, request an advanced payment to assist you with costs you will incur to protect your property and make initial repairs. Since many insurance companies will contract with independent catastrophe adjusting companies, you should verify.
Gear Up For The Unexpected
April 12, 2012 — arm_insurance
“For every minute spent in
organizing, an hour is earned.”
– Benjamin Franklin
Prior Preparation Can Cut Future Costs
By John Krivacsy
_____________________________________________________________________
How using past calamity can
help spotlight loses before they occur
Though it would be extremely beneficial to be able to predict the future, but we had better prepare for the unexpected. Since there are very few people who claim to be able to do that, we instead have to rely on the past to help plan for the future. As an auto dealership striving to be best prepared for whatever losses that might occur, it is helpful to know the probability of a certain type of loss to help focus your attention. This does not mean that you should ignore all loss possibilities, but past data can be very useful to help spotlight certain target areas.
What are the most frequent causes of auto dealership losses? The answers seem to vary depending on who is responding to the question. The insurance industry, individual insurance companies and each auto dealership may have different experiences and exposures bringing them to different answers. The following is taken from the insurance industry.
It is not surprising to know that Mother Nature tops the list of causes of large losses at auto dealerships. Whether the loss be caused by water, wind or hail it is difficult to manage elements that are totally out of your control. Roofs can be damaged from the weight of snow or ice and extreme winds may cause trees to fall, or roofs to peel back from the force of the wind. Lightning strikes can be the source of a total electrical system failure if your surge protection devices are not adequate causing damage to your computer and phone systems. Although we cannot control the weather, you do have control over minimizing the damages caused by weather conditions.
Although Mother Nature may be difficult to predict, people’s behavior is a little easier to forecast. The next most prevalent type of loss revolves around vandalism and crime. Vandals may access your lot after hours and damage your vehicles, or you may have cars stolen despite the fact that you feel you have adequate locks and security precautions in place. Unfortunately, when we discuss crime as being a top cause of loss we need to include employee dishonesty in that category. Your inventory is a large target for employee theft and it is often not discovered until a formal inventory has been conducted. Your trust in your employees makes you vulnerable to dishonest bookkeeping conduct. There have been losses incurred when employees have been found to be making wire transfers to their personal accounts or writing company checks and cashing them with the help of a bank employee.
Other losses that seem to make the list that warrant your attention include accidents involving your vehicles, whether by a customer or an employee. These type losses allow you to exert more control in their prevention. For example, using the same test drive route for your customers, where you have minimized the probability of them being put in a potentially dangerous traffic situation can be a viable loss prevention technique. Common sense approaches such as verifying your employees’ motor vehicle records may allow you to manage these types of losses in an efficient manner.
Topping off our most frequent and costly loss list are losses claimed by the customer himself. These losses can include the claim that the quality of the vehicle you sold them does not meet their expectation (lemon law), or the claim that the service you provided for their vehicle did not in fact resolve their issue. In some cases the customer may allege that the service you provided caused other issues with the vehicle that were not present when they brought it in for service. Damage relief may be sought after the customer has taken possession of his vehicle back from your service shop.
There are many types of losses that have not been mentioned above, but hopefully this information has been helpful to draw your attention to those that are most prevalent in the auto dealership arena today. It is suggested that you review your own history of incidents to determine if any trends have been developed and analyze ways to reduce them by reviewing your business practices and soliciting advise from your insurance companies.
The author:
John Krivacsy is a senior vice president and Claims and Loss Control Manager with Automotive Risk Management and Insurance Services, Inc., (ARM) based in Stockton, Calif. To reach Mr. Krivacsy, send an e-mail to 
arm_insurance 