Mechanic’s E&O

A mechanic had a customer bring their car in for service. The mechanic went through all normal procedures for servicing the car. He found the master cylinder needed replacing. He ordered the part and installed it. Two weeks after installing the part, the car broke down. When the car owner took the car to another mechanic, the new mechanic determined that not only was the replacement part broken, but it had caused damage to other parts of the car, as well.

Understandably, the car owner felt he should not pay for any of the damage. He demanded that his old mechanic pay for the part to be replaced for a second time and he also demanded that the mechanic pay for the damage caused by the defective part. If the mechanic had Mechanic’s E&O insurance, he could have filed a claim with his insurance provider and would have been covered. Without this insurance, the mechanic had to pay for all of the damage out of his own pocket.

Cyber Liability

An auto repair shop stored client information on one computer in their office, which was not backed it up to an off-site location. There were no firewalls, antivirus, spam, or spyware protection, and the data on the computer not encrypted. Someone hacked into the computer and stole the credit card numbers, home addresses, and other personal information of all of their clients. Understandably, the clients sued the auto repair shop. Fifty-five percent of small businesses have experienced a data breach, with an average cost to the business of $43,000. If this amount is something that will seriously cripple your business and potentially bankrupt it, then you need to purchase Cyber Liability insurance.

Joisted Masonry or better construction is preferred. Compliance with NFPA (National Fire Protection Association) standards for spray booths, flammable liquids, and welding.

Develop a process for handling customer keys. A log should be kept, and keys should be signed in and signed out on this log. Keys should never be left in a vehicle.

Premises should have bright lighting on the perimeter, fences, surveillance cameras, and vehicle anti-theft equipment.

Fuel and other flammable liquids should be stored away from all other operations, especially operations that create sparks. Should be stored in metal containers with tight lids.

Create a procedure for transporting flammable liquids within the building.

Used rags should not be left lying around exposed to sparks or flames.

Each piece of equipment should have a “deadman” switch so it can be stopped in case of an emergency.

Check the noise levels. If they are above 85 decibels, employees need to wear hearing protection.

Limit loaner cars to two.

Limit tow trucks to one.

Limit dealer tags to five or fewer. Less than five is preferable.

Body chassis fabrication only if part of normal body shop operations. Service Manager survey required for all auto body shops to verify compliance with NFPA.

Properly train employees on use of heavy machinery so that no one is seriously injury.

Purchase software that provides firewalls, antivirus, spam, and spyware protection, and encryption.

Run MVRs and background checks on all new-hires.

Create workplace etiquette guidelines for employees and enforce them. Include dress code, housekeeping rules, and any other relevant guidelines for your office.

Complete a Disaster Recovery Self-Assessment Checklist. We can provide one for you.

Create a business continuity plan

1. Identify industry colleagues you could outsource work to in the case of an operations suspending loss.
2. Calculate accurate employee payrolls.
3. Implement crisis procedures for communication with patients and employees.
4. Discuss your plan with your current suppliers and shippers.
5. Review this plan and run drills to identify areas that need improvement.

Secure patient data in locked facilities, cabinets, or storage areas. Backup storage at an off-site location.

For maximum protection within the facility and to limit losses, rooms should be separated by one-hour-rated fire walls.

Dust collection systems should be in place to prevent fires. The dust created during various mechanic operations can ignite quickly and potentially cause a total loss.

Install wet automatic sprinklers throughout the facility. This includes sprinklers in and around heavy machinery, not just ceiling sprinklers.

Develop a safety and housekeeping plan. Post it in clear view in numerous places so it is always on the employees’ minds.

Establish a cleaning schedule for equipment that is critical to everyday operation and that is expensive to replace.