• Theft of vehicles by wholesalers who get into financial trouble can become an area for potential risk. • Identity theft is on the rise both in metro and nonmetro areas. Ways to avoid auto theft: • Keys to dealership and customer vehicles should be secure when the keys are not being used. No keys should ever be left unattended on a desk! Key machines are a better solution than a key board. With key swapping, it is important not to provide keys to prospective buyers. With the salesperson in the vehicle, the customer does not need to have possession of your keys. • Many times, wholesalers get into financial hardship and may attempt to get a dealership to surrender the vehicle and title before payment has been made or cleared. We have seen dealerships incur losses in the hundreds of thousands of dollars in this area! • 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 the case. 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. EMPLOYMENT PRACTICE LIABILITY (EPL) • Discrimination, harassment, and wrongful termination claims are again on the rise. • 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. PLEASE CONTACT US IF WE CAN HELP ANSWER ANY SPECIFIC INSURANCE QUESTIONS: • 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 laws. • Most of these claims can be avoided or minimized by following sound business practices with employees and managers. Ways to avoid EPL claims: • Train all managers on employment practices to include best practices for hiring and termination procedures. This should be done with all new managers when they are hired and updated training annually. • Develop proper hiring and termination procedures. Check with a labor attorney if in doubt. Document employees’ deficiencies “in writing” along the way and make sure that they are aware that they are not meeting expectations. • 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, is signed by all employees and is clear about reporting a complaint. Lawsuits are on the rise, and you need to make sure that your dealership is avoiding 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. ► Shawn Presnell Managing Director of Insurance 678-428-9247 | shawnp@gada.com Felix Jackson GDIC Account Executive, Atlanta/North GA 770-570-8212 | felixj@gada.com David Crew GDIC Account Executive, Middle/South GA 470-303-9051 | davidc@gada.com Lawsuits are on the rise, and you need to make sure that your dealership is avoiding potential exposures in the best way possible. 13 THE GENERATOR
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