It may be too late! - Professional Carwashing & Detailing

It may be too late!

Exploring a proactive solution to insurance issues called claims management.

The subject for this month’s blog is a little different than my usual safety topics but equally as important.
Don’t be one of those operators that have to make frantic calls to keep their business open.
The reality is that it can happen when you least expect it. It can start after being notified by the insurance agent that the company writing the policy covering the wash is being non-renewed in the next few days. And why could this happen? Very often it is the result of a carrier deciding that the claims have become too frequent.
There is a mortgage and without evidence of insurance, what do you think the bank will do?
Now the nightmare begins. The agent often doesn’t realize, until very late in the process, that finding another market to write this business is now difficult if not impossible. So, suddenly they hand off the problem to you with very little time to find another option.
Unfortunately, this could mean your only choice will be to find yourself a non-standard insurance company. That normally will leave you with limited coverage, questionable claims assistance and substantially higher premiums. And, even if you are lucky to find a standard company to write your business, it will most likely be double the cost.
There is a pro-active solution and it’s called claims management. Simply, following some of these steps may help avoid this potential disaster:
  • Request electronic claims reports from the agent or company at least every four months. This will allow you the ability to review, on a regular basis, anything that has been posted by the insurance company. If there are any claims that you want to dispute, this provides enough time for a discussion before the renewal comes up. You should note that most paid claims are settled for the full amount even though there may be a deductible. The insurance company then in turn bills for the deductible at a later date. For instance, if you have a $1,000 deductible for property damage to customers vehicles and you incur three claims you can expect a $3,000 bill in your future. This can be a real shock, especially if you are unaware of the claims.
  • When an incident is reported, it is important that a report be filed as soon as possible. Timely documentation is extremely critical to ensure the most favorable outcome for the customer, employee and the insurance company.
  • Do not assume that your carrier will fight to deny paying fraudulent cases. If you allow it, there are times they will do what is cost efficient for them, not you. Your only defense is to be involved in the case and provide as much information as possible.
  • Record all incidents, no matter how small or incidental it might seem. This is important from the standpoint of reviewing claims to detect any patterns that might lead to a better understanding of why this loss occurred. The result of this analysis might help you mitigate or eliminate future problems by suggesting changes in processes or procedures.
  • When you do investigate claims that you don’t feel are your fault, it is prudent to save all the paperwork regarding what happened and include witness reports, police reports, pictures, video and all accident reports. It is a good idea to maintain these records for at least a year.
  • Appoint a claims committee to review all incidents, even if they are not reported to the insurance company.
Start today and implement your claims management plan at the wash. It will help ensure your ability to continue to protect your people and your assets.
A couple of reminders:
  1. For employers with 10 or more employees, there is a change in the injury and illness recording and reporting requirements from OSHA. This becomes effective January 1, 2015, for all work-related accidents. For a complete copy of this rule, click here.
  2. Winter will be here soon. If your location is in an area with snow and ice, get your salt logs ready.

A safe wash protects people and profits.

You May Also Like

Car detailing in the heat: essential tips

Learn how to mitigate the challenges posed by intense heat, from timing your sessions to choosing the right products.

detailing, towel, wipe, dry, car, new

Detailing your car in hot climates presents unique challenges that require careful consideration. In places like Atlanta, where temperatures can soar, the intense heat not only makes the job more arduous, but it can also affect the products used and the overall outcome of your detailing efforts. Here’s the first part of our guide on how to effectively detail your car in high temperatures, ensuring both your safety and the optimal care of your vehicle.

Get your car summer ready during National Spring Car Care Month 

Make summer driving safe and enjoyable with these eight basic maintenance tips for your roadtripping vehicle.

How to manage overtime at your carwash

Discover essential tips to ensure transparency, fair pay and employee satisfaction while managing overtime effectively.

scales, money, wages
7 points to consider when installing bollards at your carwash

Bollards provide safe spaces for vacuuming, detailing, and finishing work in areas where people and cars are moving.

How durable are ceramic coatings?

Understanding the longevity of ceramics in automotive protection.

yellow car exterior in auto dealership

Other Posts

Can You Count on Your Insurance to Cover Car Wash Damage?

When it comes to car wash damage, insurance coverage can vary. It’s important to understand your policy and consult with your insurance provider.

signing car insurance
9 carwash small business owner tips

How to succeed in the competitive professional carwashing industry.

5 critical considerations for carwash parking lot upkeep

Neglected customer loading, exiting, vacuum and waiting areas can throw away business potential.

The Benefits of Professional Car Detailing: Taking Your Vehicle to the Next Level

A regular professional washing and detailing is an investment in the overall health and appearance of your vehicle or fleet.

Jordan McDowell blog The Benefits of Professional Car Detailing