Automobile Repair Shops:

Ways to keep your Automobile Shop running like “Greased lightning”

Automobile repair shops are one of the most needed and highly utilized businesses in the car loving culture of America. Despite the vast popularity of cars, the repair industry has a somewhat tarnished image. So why do people who love cars or those who just really need a car for transportation have a negative viewpoint about automobile repair shops?

People often feel that they were mistreated and/or deceived,treated rudely, charged unfair prices; or faulty workmanship was performed. They then tend to label the whole industry as bad. Likewise, repair shops experience all varieties of customers and are subjected to rudeness theft, fraud, disloyal clients who purchase a cheaper product from a competitor while asking you for your advice, and other unpleasant situations. Unfortunately, this is reality in the car repair business.

Automobile Repair Shop

There are numerous types of automobile repair shops in the industry ranging from one owner with just a few employees to chains stores that feature oil changes and minor repairs to full service garages and huge dealerships. There is no one right formula for success for all. This article focuses on general auto repair shops which provide a wide range of repairs to the public. Of course customers are vital to the industry, and you are codependent on customers just as they are on you. What steps can you take to establish or improve the public perception regarding this symbiotic relationship?

People just really want to be treated fairly. And they want to have their “baby” looking and running like greased lightning. For non-musical car lovers “Greased Lightning” was the white 1948 Ford Deluxe convertible hot rod emblazoned with shooting silver and gold flames on the fenders which conveyed the image of being fast as lightning in the musical “Grease.” This car became an icon in the movie industry and to the public. It was known as a “chic magnet” by the members of the T-Birds gang led by Danny Zuko (John Travolta) in his famous portrayal of their leader. “Greased Lightning “was restored in the movie and roared to life after the proper care and attention of the T-Birds and their shop teacher. The rival gang leader drove Hell’s Chariot, a 1949 Mercury, which featured black paint and red shooting flames. This car was lost for a time after the movie, and later it was also lovingly restored in real life, by its original builder, after setting dormant for many years on the Paramount Lot.

You can take an example from “Grease” and use the process of restoration to establish or rebuild a favorable image for your automobile repair shop by combining good old fashioned excellent customer service combined with CYR (Cover your risks). A few suggestions for this are:

Antique automobile repair shop

Set the bar for a pleasant customer experience

When a potential client enters, greet and assist them or indicate you will be with them very shortly.
Direct them to the waiting area. If you provide coffee or water say so or post the price.
Have a play area for kids if possible, with quiet inexpensive activates such as coloring.

Combine aesthetics with customer safety

Keep the waiting area in a safe area of the building where no one is exposed to an injury.
Keep the public waiting area and restroom clean and visually appealing. Routinely inspect the area for hazards/risks such as puddles on floor and use fall prevention measures.
Keep the outside parking lot safe, fix holes in parking lot and sidewalks, provide outdoor lighting, routinely police the area for broken glass, contraband and contaminants, such as needles, which carry blood borne pathogens.

Learn to appreciate the customer’s input and put it to good use.

Ask the client what they feel is the problem, listen and acknowledge their opinion and solicit more information with questions.
Explain what else the problem might be and what your procedures are:
If you need to run diagnostics tell them upfront whether it’s free or there is a charge and why it needs to be done.
Be aware of client’s financial situation: If a client suddenly declines upon learning about the fee, offer them options. (Monetary embarrassment to the customer is a driving factor in their decision making) If they do not have the ability to pay immediately work with them to set a price and a time line for fixing issues one at a time if at all possible. If they cannot proceed immediately due to finances, thank them for their business let them know you will be willing to assist them when they are ready.
(Mechanics liens usually prevent the client from being able to simply not pay for your services). An explanatory brochure on mechanics lien should be available that you can have the customer read. If they want to proceed having the client sign a contract which says a mechanics lien can be used if they default is s a good risk management practice and puts the client on notice.
If you start work on a vehicle and have to revise your estimate let the client know ASAP and get their consent.
After service, advise the client of upcoming needed repairs and maintenance. A print out would be great.
Be patient with complaints, acknowledge and fix the problem if at all possible.
And try to keep calm and carry on!

My Insurance Question - Get the best answers to your Automobile Repair Shop Questions.

Show off your talent:

Display large pictures of cars you have lovingly restored or fixed with their happy owner’s as well as showcasing automotive industry awards and Certificates of Membership from industry associations which address customer excellence.
Display testimonials or thank you letters from clients
Use miniature cameras to record your employees work to prevent mistakes and complaints. Then furnish a complimentary picture for the client showing them with their car smiling.

There are many other things you can do to feature your company in a positive light and focus attention on the quality of your work.

At the same time you want to take every step possible to protect your business from any bad apples while also protecting your valued clients and employees with comprehensive insurance coverage.

General Auto repair shops are in the business liability category of Automotive Services and Sales.
The SIC Business Code would most likely be the General Automotive Repair Shops-7538.
The NAICS Liability Classification would be 811111-General Automotive Repair.
The ISO General Liability is 10073 Auto Sales, Repair and Service and the Worker’s Compensation Class code is 8380 Auto Repair.

Various types of insurance will be necessary. All automobile repair businesses will need worker’s compensation which is mandatory if they have employees and do not have the ability to self-insure.

Employers Insurance Company has created this great video about the Workers’ Compensation Insurance needs of Automobile Repair Shops.

You will need General Liability (slips and fall) and business property. You may want a BOP with the following: Business income and extra expense, Hired and non-owned auto, Commercial Crime, and Umbrella. Be aware that some business property policies do not cover signs which are not attached to the building, so you would need a rider.

Automobile repair shops also need to determine whether they need Garage Liability, or a Garage keeper’s policy. These two types are not identical. They address different needs. Generally speaking Garage Liability is more useful for a dealership that does auto repairs than a stand-alone auto repair shop. Many times a dealer will need both garage liability and garage keepers if they do auto repairs.

Garage keeper’s is best for a non dealer auto repair shop which may combine legal liability, direct primary and direct excess for customer’s automobiles. Commercial General Liability has an exclusion for client’s cars which are in the care, custody and control of an auto repair shop including test drives. Garage keepers covers what would be missed under the exclusionary language of the GLC policy and function much like Bailee’s insurance.

If your repairs fleets of autos for government, large corporations or schools; most of them will require Garage keeper’s with direct primary coverage and a Certificate of Insurance. Some may require that they be listed as an additional insured.

Cyber insurance is also highly recommended in light of the Payment Card Industry Standards and threat of data breach. You could be liable for the invasion of privacy, notification costs and damages should a customer’s data or identity be stolen.

Other types of insurance worth considering: Employment Related Practices, Moneys and securities, Accounts Receivable, Computers, Goods in transit, Valuable Papers and Records, Employee Benefit, Environmental Impairment and or sewer back up.

With all of the clients concerns and safety addressed and insured you can focus on your main priority. Making cars run like greased lightning!

Cable Installers Liability Needs

Cable Installers, are you an employee or a 1099 contractor? (Or “The elephant hiding in the closet”)

There is a vast movement afoot in the cable and satellite installation industry to have cable installers become a 1099 contractor rather than an employee of the cable company. See “Consider the Cable Guy”: The Grind Investigation Fund. Many major cable companies are requiring their employees to make this change involuntarily. Why you might wonder?

Well, this is a very effective cost cutting measure for the cable companies. They need people to install the systems, wiring and equipment that operate and control the media service they are selling. This job cannot be performed without a human at this point in time. However, if cable companies utilize a fleet of 1099 contractor’s as cable installers instead of employees:

It reduces the employer’s costs considerably as the employer no longer collects or pays FICA or federal and state income tax on the cable installers.
Cable companies does not pay employer taxes in to the government.
Cable companies often charge the 1099 contractor cable installers for such things as uniforms, tools, equipment and use of a truck. Conversely, as an employee, the installer would most likely have received those items at no cost from the employer. These measures both reduce the cost and bring in revenue from the contractor.
A Cable companies also save vast amounts of money on reduced insurance payments as the burden of carrying certain types of commercial insurance switches to the 1099 contractor. This reduces the number of employees and conversely reduces the premium cost for the employer as well.

So, if a cable installer begins working as a 1099 contractor they really are functioning as any small business owner would. The installer will need all the types of insurance that any company in the cable installation business should carry including general liability, errors and omissions, business property, inland marine, commercial auto (if you are furnishing the vehicle), commercial property and loss of business income and perhaps an umbrella policy or a technology policy. As a 1099 contractor, you can obtain these as part of a business owner’s package or as standalone policies.

You should speak with your agent to gain knowledge about the best options for cable installers within the Class Codes your business comes under listed below:

Business Liability Category: TV and Media Installation

SIC Business Insurance Codes:

4841- Cable and Other Pay TV Services

NAICS Liability Classifications:

517110- Wired Telecommunications Carriers
• 515210- Cable and Other Subscription Programming

Business ISO General Liability:

Code: 91315- Cable and Subscription TV Companies

Common Workers Compensation Class Codes:

7536- Cable Installation and Construction
8901- Cable and Telecommunications- Office Employee
7600- Cable TV or Satellite- Other Employees and Drivers
6325- Conduit Construction- For Cables or Wires
8742- Outside Sales Persons
Code: 91315- Cable and Subscription TV Companies
Code: 91315- Cable and Subscription TV Companies

Plus, as a 1099 you will need health insurance which covers your own health needs. This means obtaining health insurance which is most likely not part of a group plan in most cases. Individual health insurance is usually very expensive no matter who the insurance carrier may be. An alternative is to join a union or an association of workers in this field that offers health insurance to its members thus forming a group (E.g. Communication Workers of America).

But the biggest concern related to insurance is Workers Compensation.

Since you no longer are an employee, just as you are no longer covered by the Cable Company’s group health plan, you are no longer entitled to worker’s compensation through your client the Cable Company. That means even if you get hurt on the job while installing for the cable company at a property you were sent to by the cable company you are not covered by Workers Compensation. (There is that elephant hiding in the closet with a not so great surprise!)

Whether your required to carry Worker’s Compensation insurance for yourself (as a single employee) is another question altogether and depends on many things. Some states require that a single employee company carry workers compensation while other states do not. In some states you are exempt if you have less than 4 employees. Some states exempt members of an LLC. Whether it is required by the state should not be the end of the inquiry because if you don’t cover yourself for Workers Compensation, no one else is, and you may be definitely letting the elephant loose to trample you if you are injured severely on the job. Additionally, your old employer (the cable company) who is your “client” who sends you out to cable company users homes to do installations can and often does require that you carry workers’ compensation and that you make the cable company an additional insured on your policy when you go out to install systems for their customers.

You may think you are covered by your own health insurance that you just bought, however; many times your health insurance carrier will deny coverage if you were injured on the “job” and if you don’t have workers compensation the injury is not covered at all unless a third party or the cable company was negligent.

This can be quite a tragedy if you are injured and have not obtained the insurance needed to protect you. The Bureau of Labor Statistics shows that 3 million workers were injured on the job in 2014. So if you find yourself in the position of a new 1099 contractor make obtaining commercial insurance one of your top priorities.

Insurance needs for Drones in the workplace.

Thinking of Using Drones to Perform Home Inspections? What insurance options do you have?

Most home inspectors are familiar with and carry General Liability, Commercial Property and E&O or Professional Liability Insurance to protect their business and understand the risks they run if not protected by these critically necessary types of insurance. The American Society of Home Inspectors (ASHI) recommends these coverages at a minimum. Until recently drones may not have been used as tools at all in the home inspection field. Drones are probably not covered on your commercial general liability policy or business owner’s package. Drones are currently being used for fun hobbies such as photography; throughout different industries such as in science, surveillance, and logistics and, specifically including property surveying and home inspections. So drones are gaining popularity with business owners. The FAA now requires drone insurance to meet Section 333 exemption for a drone that is used commercially.

However, drone insurance coverage nuances are just being created for the insurance industry. International Organization for Standardization (ISO) has developed different endorsement forms for adding endorsements to Commercial General Liability, Commercial Liability, Commercial Umbrella Excess, Commercial Inland Marine, Commercial Property and Capital Assets together with business interruption exposure due to loss of use of a drone. Information about all of the ISO forms for drone and white papers on drone are available. See ISO’s Emerging Issues Portal (http://www.iso.org)

Any carrier that offers drone insurance can use these ISO endorsements by adding them to your existing coverage. However, of every carrier underwrites policies for drones due to the cost of replacement, technical differences, and various types of machines availability and standards of safety for operating and FAA requirements being undefined until very recently; and what function (s) the drone will perform.

Disputes over the ethics and morality of the use of drones as weapons may also have historically driven the carrier’s decision not to provide coverage so as not to tarnish the public image of the insurance company. However, as more and more companies use these as tools in commerce; the public‘s perception may become more favorable. If a distinction is made in ordinary language between domestic drones and weaponized combat drones more frequently, it may aid the acceptance of drones as well.

Home Inspectors obviously want coverage for a domestic drone, while a defense contractor is more likely to request coverage for weaponized drones. Some carriers include Lloyd’s of London ( a specialty carrier) Stonewall Aviation, Global Aerospace, Assurex Global and AIG. Most carriers who serve the aviation industry are very knowledgeable about drones and do offer drone insurance.

But in regard to purchasing commercial drone insurance for a home inspector, you first need to know if you are actually insuring a drone, or is it really technically something else? The terms drone, UAV and UAS are used interchangeably in general business. It behooves you to clearly identify the technical name of the equipment or tool you want coverage for in seeking drone insurance.

Drones are defined as any kind of remotely guided vehicle whether on land, sea or air with the main qualifier being unmanned. Regulations are in progress that would further define what is or is not a drone
UAV’s are defined as unmanned aerial vehicle s that are remotely controlled or guided through pre-programmed software.
UAS’s are defined as unmanned aerial systems.

There are numerous debates about which definition is technically correct. The technical name used by the maker is the most logical term to use for insurance. To be assured of coverage you want to furnish the manufactures Id or serial number similar to a motor vehicle Id no. and to update the policy if new drones are acquired. But most importantly, since you are using the drone commercially, the drone must be registered with the FAA if it weighs more than .55 lbs. and it cannot exceed more than 55 lbs. in weight. If you are not registered with the FAA you can be fined and even imprisoned. Federal Drone Registration Part 107. You must also have a FAA Commercial Remote Pilots License which became effective on 8/29/2016. Your carrier will require copies of the registration and license.

The identity of this particular tool is what is essential so that the insurance covers the repair or replacement cost of that particular item and sufficiently identifies that specific piece of equipment if damage to persons or property occurs while in use.

Next you need to define exactly what the function of the machine is and tasks you are going to be performing with the drone and equally important what liability could result from the tasks you are performing. The most important factor to a carrier boils down to what risks are assumed and what damage can be caused by the use of this tool in your business. Damage could result from crashing the drone along with injury to a person and/ or property if hit by the drone or pieces of it, in the event of an explosion or malfunction.

Home Inspectors use drones mainly to inspect roofs and chimneys because of the height, the necessary angles that need to be examined on steep roofs, and the danger of falling. The primary function of the drone for these inspections is actually aerial photography so you will need a good camera that can be remotely operated while attached or built into the drone and produce high resolution pictures. You may want a dual control model camera where a pilot mans the flying function and the inspector reviews the photos simultaneously for quality and to determine whether different shots or angles are needed. You also want to be sure the camera is covered either separately or as part of the drone insurance. In a UAS the aircraft or drone is the Platform, the Payload is the camera or sensor and the Ground Control Station is the remote pilot and the inspector, or just the inspector if he is also the pilot. You want to ensure you have coverage for all parts. Fortunately, the drone itself has a wide range of price s depending on the model you select starting at approximately $175.00and the camera may actually be the most expensive piece of equipment.

Damage to the property owner may also result if an unsafe defect on the property is not detected as part of the home inspection and later results in a loss. This type of injury is either covered by Error & Omissions or Professional Liability for the home inspector. Some insurance company such as Target Professional Programs offer Home Inspectors Insurance as a specialty insurance endorsed by ASHI that has a combined BOP package with Professional liability and Drone insurance endorsements.

Target’s General Liability insurance can limit coverage to specific types of inspections that you actually perform depending on whether they are residential, commercial, Section 8 or other types. This lowers your cost for premium. They also offer tailored optional insurance coverage, e.g. mold inspection but not termite inspection.

So if drone inspections are in your future business plans, you want to explore your insurance options thoroughly.

Why Inland Marine Insurance can be your best investment in your business!

Attention: Landscapers and Lawnmowers. You need Inland Marine Insurance Coverage.

Get the answers to your inland marine insurance questions for your lawncare or landscaping business at generalliabilityclasscodes.com

Inland Marine Insurance really does not sound like a type of insurance a landscaper or lawnmower would be expected to need; but you absolutely do in order to avoid gaps in your coverage. While the insurance class codes for landscapers and lawnmowers are not identical, common issues face both industries which can be addressed with this type of Insurance. Inland Marine insurance came into being as Ocean Marine Insurance in the very early days of transport across the ocean. This coverage expanded to other water ways such as lakes, rivers, loches canals and channels known as inland waterways used to ship goods and cargo in all kinds of trade. But the term has evolved with the times and can now be used to provide coverage for almost anything that is transported whether it’s over the ocean, inland water ways or over land; which brings us to the two most important reasons for having this type of insurance.

First, clients do not come to your shop to have you landscape their residential or commercial property, or trim their trees. You need to travel to where the work is being performed and bring with you all the equipment and tools you need to do the job and those items must be transported.

Commercial Auto insurance does not cover transportation of tools and mobile equipment while Inland Marine Insurance does. In fact, your commercial auto insurance policy may not cover all the specific type of “vehicles” you are using in your company at all if they are not defined as an automobile while the Inland Waterway Policy can insure moveable equipment and or unusual items used in any industry. So items applicable to landscaping and lawn mowing could include:

Heavy duty pickups, moving or cargo vans, or trailer used to transport tools and equipment.
Heavy equipment, e.g. Backhoes, bobcats, cement mixers, graders, and fork lifts used to perform the job.
Small or miscellaneous equipment and tools

Second, Inland Marine protects your equipment, tools any unusual item and can be designed to fit any and all of your needs if it is properly underwritten to be specific to your industry under the class codes. For instance snow removal can be added if the class code is added as secondary industry and you have a floater specifically for the snow removal equipment. A variety of floaters are available and you can add any type of floater that your insurance carrier provides to your policy that is appropriate for your business. Inland Marine can be included in a business owner’s package or be a stand-alone policy in addition to your general liability and other traditional types of business insurance.

Inland Marine is unique to insurance, in that it can be written as “peril coverage “where only specifically listed items which are attached to the policy are covered; or “all risk” Obviously the premium and deductibles would vary depending on which type you choose and how much coverage you want. The drawback to peril coverage is you must keep your list updated every time you have to replace or purchase a new piece of equipment or a tool, and advise your agent immediately of the change. In other words any item not listed is not covered. The risk of failing to notify your agent timely can be partially addressed with a floater for new items purchased which extends your time to notify your agent but gives you less coverage for that item than if you had notified your agent sooner.

.Landscapers and Lawnmowers will primarily need Mobile Articles & Machinery and Equipment Coverage as a floater which is the type that will pay for damage incurred to the property or theft of the item during transit of the object. Regardless of whether you want a combination BOP or a stand-alone policy you would want to analyze whether you need additional optional “floaters” in your Inland Marine policy. For instance:

Rented Leased or borrowed items floater if you rent machinery or equipment to use for specific jobs.
Computer /printer/hardware/software and business data floater if you take your computer with you to jobs to prepare bids, designs invoices etc.
Loss of revenue incurred due to loss of business data.
Installation floater if you leave machinery, building materials or other items at the job site for the duration of the project.
Bailee’s/customer’s goods floater in the instance where you might have possession of, or are transporting the owner’s property. This could occur in an instance such as the owner has purchased a large feature item, say a fountain, and the landscaper needs you to transport and install the fountain.
Employees tools

Another very crucial floater is Builders Risk a/k/a Course of Construction. This item may not be necessary if you are working with a General Contractor and you are a named insured on their policy. Conversely, it could be highly beneficial if you are not working with a GC. You should thoroughly discuss each aspect of your work with your agent to determine when this floater is necessary, and periodically review whether you need this coverage as your business grows.

So, with a unique combination of floaters designed for you, Inland Marine insurance can be your key to protecting your business equipment, while being transported to and from the job site, throughout the duration of the job and back home to your headquarters again, giving you peace of mind and freeing you to focus on other aspects of your business.