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Insurance Reviews – What if Scenarios [THA 172]



Bambi Crozier, wife and co-owner with Neil Crozier, of Car Clinic in Lowell, AR (Northwest Arkansas), has a passion for the hardworking shop owner. Her vision to Change the Face of Automotive Care motivates and inspires every aspect of her daily operation. She entered the industry in 2012 as an entrepreneur shortly after moving back to Arkansas. She spent more than 11 years at AT&T in client relation roles and has a talent for looking at her business and the auto industry through the lens of a client. Bambi’s previous episodes HERE.

Kim Auernheimer, AAM is the Co-Owner & Business Manager of CS Automotive in Brentwood, Tennessee. CS Automotive was opened in October of 2006 in the back of a warehouse and now they call a 6,400 square foot, 10-bay shop home.  Prior to joining her husband Rob in the business on a full-time basis, Kim had a career in Commercial Real Estate and Property Management. In July of 2011, she stepped out from the background of the business and joined her husband in the venture of creating an industry-leading standout

Kim continuously seeks out training for her and her entire team and put the teachings to use. Her belief in industry education has been a large influence on how much success and growth they have had over the last few years.  She has a passion to improve the reputation of the Automotive Repair industry working alongside other shop owners and industry leaders to improve the overall experience of the customer from the moment they make that first call to the shop until they drive their car off the lot instilling transparency and developing trust during the entire process.

In 2017, she obtained her Accredited Automotive Manager (AAM) designation. This is a result of 120-credit hours of coursework in several core competencies including leadership, marketing, customer relations, accounting, and several other areas of automotive repair business management. Listen to Kim’s Episodes HERE.

David Coury, AAI, CIC, is the Senior Account Executive of IGO Insurance Agency.

Key Talking Points:

  1. Who can I call to review my insurance to make sure I have everything I need and compare what I have to what others in my industry may have?
    1. Your agent is a critical advisor to you
    2. You must trust them. Have lunch. Look them in the eye
    3. Find a specialist, if you can, in the automotive industry 
    4. You don’t know what you don’t know. You may not know what to ask that is why a strong relationship with an agent will bring more to the table
  2. What if my building burns down – are my tools covered? Are my clients’ cars covered? Are my employee’s wages covered? Is my lost revenue covered?
    1. At fault, not at fault
    2. David says co-insurance is important.
      1. You’ll need to be close to the value of building on coverage
      2. Actual rebuild costs, you need to be covered up to 80%
    3. Business interruption for income is critical
      1. You can get 12 months actual loss sustained
      2. Keeping you even
      3. Read the fine print
    4. Look at replacement costs of new equipment
  3. COVID19
    1. Your policies may have a virus/bacteria exclusion
    2. Workman’s comp may have a ‘disease at work clause’
    3. The natural course of events should not be part of your Workmans comp
  4. What if we have an accident in a client car? Is the car covered, are the other people covered, is my driver covered? What if there’s damage to another property?
    1. You did the work on a client’s car and something happened. You’ll want comprehensive coverage.
    2. Liability will also cover if the client is driving
    3. Test drives:
      1. Non-owned auto liability
      2. Workmans Comp can come into play
    4. There is Garage Keepers coverage
    5. Consider an umbrella policy to cover catastrophic claims
      1. Buy coverage based on your appetite for risk
      2. David sees catastrophic claims $3-5 Million
      3. Umbrellas do not fill gaps. It extends what you already have
      4. Tough to suggest what coverage to get. Your appetite for risk
    6. Consider a personal umbrella also to cover you personally
    7. Insurance follows the vehicle
    8. Look at drive other car coverage for your business
  5. Sexual harassment needs to be an endorsed rider
  6. What if my employee is hurt at work?
    1. Workmans Comp
    2. States track your claims and you get an experience modification
    3. Should you self insure small claims, cuts/bruises (a suggestion not the rule)
      1. Ask your agent and look at your experience
      2. Let your agent guide you on filing claim
  7. A customer gets hurt on your property (rent or own)
    1. If you are leasing, you must read your lease to understand your liability
    2. The landlord can demand you have certain coverage and umbrellas
    3. You need to be sure your landlord has insurance
  8. What if we blow up a motor? Is the damage covered?
    1. Carrier can say you touched the engine it is your fault
    2. You need to look at ‘mechanics errors and omissions’ coverage
    3. Also’ broad form product’ coverage on your general liability
  9. Do I need commercial umbrella insurance? What does it cover? Is there a place where there is too much coverage and we become sexy for lawsuits?
    1. See #4 above
  10. Cannot get calls or the internet or power to run the tools?
    1. Look at the fine print of your policy
    2. Big storm, power is out. But why? Flood? (possibly no coverage)
    3. Many policies exclude overhead transmission lines. 9 of 10 polices do not cover overhead transmission lines
  11. What if there is a big hail storm and it damages all our company cars and client cars outside?
    1. Need comprehensive coverage for your cars
    2. There will be a deductible fr the company cars
    3. A stop loss on your garage keepers coverage
    4. Direct and primary coverage has a limit
      1. Actual cash value for replacement
    5. Look at your flood coverage
      1. Anyone can have a flood
  12. What if someone accuses us of unfair employment practices?
    1. Employment-related practices policy or endorsement
    2. Wrongful dismissal
    3. Unfair hiring practices
    4. Sexual Harassment 
    5. Discrimination
    6. A third party. An outsider comes to your place. Look at this coverage.
    7. Critical to have a handbook and procedures manual that describes how all of these claims are managed
  13. “Fear is the length and shadow if ignorance ”

Link to previous Insurance Academy #161 HERE.

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About the author, Carm Capriotto, AAP

Carm is the founder and host of the Remarkable Results Radio Podcast; the only one of its type in the automotive aftermarket. Carm calls on his 35 years’ experience in the aftermarket to bring engaging stories from his guests.

Listen to raw, unfiltered, honest, and sincere stories that include insights, trends, best practices and expertise. Each interview brings an opportunity to learn one new thing through the stories of personal achievement. Many podcast guests tell their story of transformation from working in their business to working on it.

As host, Carm uses his enthusiasm and passion for the aftermarket especially the service sector to take his listeners on a journey showcasing successful service professionals’ path to Remarkable Results. He also enjoys interviews with aftermarket industry thought leaders who bring their industry perspectives to his listener.

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