Federated Insurance’s Claim of the Month — Could it happen to you?

A mechanic test drove a customer’s vehicle to better diagnose a problem. While listening for the problem, the mechanic got distracted and rear-ended another vehicle, seriously injuring the occupants. The shop had not run a motor vehicle record (MVR) on the mechanic prior to allowing him to conduct the test drive. If they had, it would have revealed multiple accidents, speeding violations, and a DUI in the past three years.
CLAIM AMOUNT: $850,000

What policies are in place to help prevent this from happening at your shop? Do you know who’s driving your vehicles? Federated recommends several best practices to help protect your business and manage risks. For example:

  • Have a “no distracted driving” policy signed by the employees and kept on file.
  • Order motor vehicle records on ALL employees who may have driving privileges, even incidental.
  • Consider pre-employment and post-accident drug testing in accordance with your company policy and applicable state laws.

These are just a few loss control recommendations you can use to help protect your shop. To learn more, contact your local Federated Insurance representative and request a copy of our Who’s Watching Your Vehicles? – Keys to Inventory Control auto dealer risk management packet. Federated Insurance is recommended by 19 states and national auto dealer associations just like yours for customized insurance programs and value-added risk management services, such as Federated’s Shield Network®, the Risk Management Resource Center, and the Federated Employment Practices Network®. Visit federatedinsurance.com to find resources you can use to create or ramp up your own risk management program.