April 25, 2012
Owners and operators of automotive service businesses have specialized insurance needs. The reason for these specialized needs is self-evident; no other industry has its premises and operations so closely intertwined with automobiles. Automotive service concerns have inherently dangerous materials on the premises and potentially hazardous operations, such as welding, may be performed. Additionally, the value of automobiles gives rise to potentially large physical damage claims against persons responsible for servicing or repairing them; and because many of the services performed on autos involve safety, possible liabilities are numerous. Consequently, the inspection and treatment of exposures suitable to other operations is inadequate for insureds in the automotive field.
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.
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?
___ 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?
___ 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?
___ 1. Business income coverage
___ 2. Extra expense coverage
___ 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?
___ 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?