Producers contemplating automotive service business need to be familiar with the unique exposures of the industry. The following survey is meant to provide an information sheet/checklist the producer can use in collecting data on potential clients during an inspection of the premises. For a discussion of the highly specialized garage coverage form used in connection with many of these risks, see the Auto C.1 through C.6 pages in the Casualty volume. Electronic subscribers should see Garage Policy.

Garage Coverage Checklist

General Information

Named Insured:

Address:

City, State:

Phone, Fax:

Named Insured is:     ___Individual       ___Partnership     ___Corporation ___Limited Liability Corp.     ___Joint Venture                     ___Other

General business operations:

States/territories in which insured has operations:

Loss control contact name/phone:

Special Considerations

Number of years insured has been in business:

Dealer/non-dealer

Is insured franchised/not franchised

Any complaints regarding the insured with the Better Business Bureau

Has insured ever filed for bankruptcy?

Has insured ever been cancelled or non-renewed?

Does insured have active loss control program?

Property Exposures

     ___     1.     Are premises owned or leased?

     ___     2.     Is there a fire legal liability exposure?

     ___     3.     Is there an “improvements and betterments” exposure?

     ___     4.     Describe nature of building location

     ___     5.     Describe building's general condition

     ___     6.     Describe building's housekeeping

     ___     7.     What is the building construction?

     ___     8.     Sprinklers, alarm system, extinguishers?

     ___     9.     What is the roofing material?

     ___     10.     Describe all operations performed

     ___     11.     Appurtenant structures, storage tanks, gas pumps

     ___     12.     Business personal property exposures

     ___     13.     ACV or replacement cost

     ___     14.     Extent of accounts receivable

     ___     15.     In what form are business records kept

     ___     16.     Important records stored off-premises?

     ___     17.     Tools owned by employees?

     ___     18.     Parts inventory — reporting form needed?

     ___     19.     Any owned autos?

     ___     20.     Any autos held for sale?

Crime Exposures

     ___     1.     Location of premises/type of neighborhood

     ___     2.     Proximity to police

     ___     3.     Hours of operation

     ___     4.     Is there an alarm system?

     ___     5.     Inventory control process

     ___     6.     Is there a safe on the premises?

     ___     7.     Are receipts deposited daily?

     ___     8.     Is business primarily cash, check, or credit?

     ___     9.     Employees with access to cash

     ___     10.     How are new employees screened?

Time Element Exposures

     ___     1.     Business income coverage

     ___     2.     Extra expense coverage

Liability Exposures

     ___     1.     What is the overall condition of the premises?

     ___     2.     Attitude toward “housekeeping”

     ___     3.     Presence of physical hazards

     ___     4.     Presence of inherently dangerous materials

     ___     5.     Presence of gasoline pumps?

     ___     6.     Customers allowed in service area?

     ___     7.     Firearms on the premises?

     ___     8.     Age and condition of underground gas storage tanks

     ___     9.     Any contractual liability exposures?

     ___     10.     Products and completed operations exposures

     ___     11.     Are mechanics certified?

     ___     12.     Any additional insureds?

     ___     13.     Liquor liability exposures

     ___     14.     Are limits of liability adequate?

     ___     15.     Umbrella coverage needed?

     ___     16.     Pollution liability coverage needed?

     ___     17.     What is included in garage operations?

Automobile Exposures

     ___     1.     Owned and nonowned auto exposures

     ___     2.     Any tow or emergency road service?

     ___     3.     Check MVRs of users of covered autos

     ___     4.     Loaners provided to customers?

     ___     5.     GKLL coverage exposures—direct primary/excess

     ___     6.     UM/no-fault coverages needed?

     ___     7.     Physical damage coverage

     ___     8.     False pretense coverage needed?

     ___     9.    PIP needed?