The following are ways to avoid identity theft or false pretense claims: • Identity theft is on the rise. It is important that your salespeople and managers be trained to spot an altered ID or driver’s license. Remember, if something seems too good to be true, it probably is. Driver’s license scanners can help prevent false identity. Be very cautious of out-of-state deals if the customer is not willing to come to your dealership to pick up the vehicle. • Train managers on the red flags of potential identity theft claims. Vehicles that are sold virtually should require a manager’s review and approval. • Even the most experienced salespeople, managers and F&I professionals may not be able to uncover a false identity scheme. Therefore, you may want to contract with a company that specializes in the avoidance of false identity claims. EMPLOYMENT PRACTICES LIABILITY (EPL) Discrimination, harassment and wrongful termination claims are always a challenge in the business environment, and while many of these claims are without merit, you still must defend your dealership. Most EPL claims are against managers and occur following termination. Following the law for FMLA and ADA is critical to keep your dealership from having an EPL claim. If your dealership employs 50 or more employees, you are subject to FMLA. If your dealership employs 15 or more employees, you are subject to ADA law under Title I. However, all sizes of employers are subject to the ADA Title III for ensuring accessibility for people with disabilities in places open to the public. Many of these EPL claims can be avoided or minimized by following sound business practices with employees and managers. The following are ways to avoid EPL claims: • Train all managers in employment practices to include the best practices for hiring and termination procedures. This should be done with all new managers when they are hired and updated annually. • Develop proper hiring and termination procedures. Check with a labor attorney if in doubt. Document the employee’s deficiencies “in writing” along the way and ensure they are aware that they are not meeting expectations before termination. • Have a no-tolerance sexual harassment and discrimination policy and enforce it. • Thoroughly investigate all complaints and take appropriate action. • Make sure that your dealership’s no-harassment and no-discrimination policy is in writing and signed by all employees and clearly outlines how to report a complaint. Lawsuits are on the rise once again. You need to make sure that your dealership avoids potential exposures in the best way possible. Please do not hesitate to contact me or any member of my insurance team if we can be of any assistance or answer specific insurance questions. You can contact Shawn Presnell, managing director of insurance services, by calling (678) 428-9247 or emailing shawn_presnell@gada.com. You can contact David Crew, GDIC account executive of Middle/South Georgia, by calling (470) 303-9051 or emailing david_crew@gada.com. You can contact Matt Martinez, GDIC account executive of Atlanta/North Georgia, by calling (770) 570-8212 or emailing matt_martinez@gada.com. 21 THE GENERATOR
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