Time for Car Dealers to Examine Insurance Coverage
Natural disasters have caused growing catastrophic losses over the past years and an all-time high of insured losses of $135 billion in 2017.
April 18, 2018
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Severe weather and its related losses are leading some automotive insurers to re-evaluate their business models, making this a smart time for dealers to examine their coverage to ensure their businesses are properly protected.
Natural disasters have resulted in growing catastrophic losses over the past years and an all-time high of insured losses of $135 billion in 2017, according to reinsurer Munich Re. The rate of weather-related high-loss incidents has become more frequent since 2000 compared with the two previous decades.
Consequently, some property-and-casualty insurers are re-examining their operations and, in certain cases, choosing to pull out of particular markets, leaving affected dealers scrambling for a new insurance provider.
Dealers need the protection and peace of mind that comes from knowing their property-and-casualty insurance covers their most important assets: their teams, business and property.
Given all the changes in the market, now is a good time for dealers to assess coverage and confirm insurers remain committed to the business. Dealers should look for providers who are experts in the auto-retailing industry, have a stable track record and can be counted on to help plan for potential disasters and other times when dealers need them most.
They should also seek insurers with strong claims service. Ask insurers how they settle claims and determine reimbursement amounts. Asking about turnaround times on claims can provide insight.
Planning ahead helps dealers mitigate risks, reduce losses and get back to business faster. Dealers can also use this time to reevaluate other practices for keeping insurance losses down. Some suggestions to consider:
· Limit the number of vehicles given to employees and family members to drive.
· Install video-surveillance cameras. They deter break-ins, thefts, vandalism and fraudulent liability claims.
· Update storm emergency plans. Review them with staff regularly to ensure prompt action can be taken to protect assets in the event of severe weather.
Insurance protection is a necessity. Asking questions and assessing coverage needs now can save time, money and big headaches later.
Doug Timmerman is the president of Ally Insurance.
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