Famous last words! “We don’t have losses” or “that could never happen to us!” That’s good news, and many GLAA members have said these exact words, or heard fellow Garage owners say them.

But the fact is large property or liability losses happen every day to Garage businesses that have had no prior large claims, businesses just like yours.  It’s important to note that a large number of losses... large and small...are preventable by taking a few simple precautions.

Here’s a few examples of insured claims paid for more than $100,000 to Garage service/repair operations over the past several years. These losses probably could have been avoided by taking appropriate Safety and Loss Prevention steps.

Safety & Loss Prevention Steps  

PROPERLY DOCUMENT REPAIRS AND MATERIALS USED

A garage performed brake work on a customers’ vehicle prior to the customer’s car being involved in a serious accident due to brake malfunction. It’s alleged the garage used contaminated brake fluid. Proper records & sign-offs were not preformed by garage so the case drags on in court causing huge defense costs for the insurer and continued headaches & court appearances for the repair operation.  

PROPER SIGNAGE AND PROHIBITION OF CUSTOMERS IN SHOP AREA  

A repair operation had a customer slip on an oil spot, which came from the repair area. Their customer walked from waiting area into the garage repair area as the business owner did not prevent all customers in working areas.

PRE-EMPLOYMENT SCREENING OF MVR AND WORK HISTORY  

A mechanic, while test-driving a customer vehicle, failed to observe traffic had stopped in front of him while entering the roadway. The employee rear-ended a third party, causing severe injury. This was a new employee who had not been screened prior to hiring by the business; a poor MVR & work history were later discovered.  

EMPLOYEE SAFETY TRAINING AND POSTED GUIDELINES

A mechanic lifting boxed auto parts severely injured his back. The shop was liable because it had no back brace or leg-lifting guidelines set for employees.

SAFETY CONTAINERS AND CONTROL OF COMBUSTIBLE ITEMS  

Non-approved open container was used for dirty oily & gas rags and kept at service bay entrance. Someone flicked a used cigarette butt when finished smoking outside and fire quickly ensued causing damage to building and smoke damage to customer’s cars.   

REGULAR SAFETY REVIEW

All shop owners should regularly survey their shop for safety hazards, review and train employees on proper safety and operational procedures, and carefully review employee candidates prior to employment. 

State Auto can help GLAA Association members minimize the risk of these types of claims with personalized loss control services available to all of SA insured businesses. Because sometimes it “does happen to you”!