On the latest episode of our Smart Compliance Podcast, we talked insurance with President of Dealer Risk Services, Steve Gibson. It’s an important topic for dealers because there are so many costs hidden in the twists and turns of insurance claims. Steve’s got some great tips for you on how to get a better understanding of your risks and where you can save some money. It was an interesting conversation. Listen in…
On trends in claims Steve’s seeing these days:
Well, we see the normal claims. The normal claims that are chased by the plaintiff’s attorneys which are slip and falls, and of course, automobile accidents, et cetera. But there are some things on the horizon that really give us the most pause for concern. And I think one of those always has to be cyber. When we think about the people that protect our personal and confidential information and that have it at their disposal, we think about our banks, we think about our doctors offices. But certainly an automobile dealer because they do all of the credit applications. They have all of that personal, and confidential, and personal identifiable information about each and every one of their customers.
On taking steps to minimize risks:
That’s the absolute first step in risk management, is understanding what you have. No one can predict the future, but we can certainly look at the past. And in particular, a five year historical view of the past, it will give us a good preview of what’s gonna happen in the future. But that’s just step one. Step two is in looking at those claims, developing protocols and management procedures and processes that will eliminate or at least lessen the frequency.
On making your dollars work smarter for you:
The difference between a $5000 deductible and a $25,000 deductible is 20 grand. So if you have a loss and you’ve moved from five to 25, yes, it’s gonna cost you an additional 20. If you have several of those in a year, it may change your lifestyle a little bit. If a jury comes in and gives an award for $30 million and you only have a $10 million umbrella, you’re $20 million short. That’s gonna change your life all together. And it may in deed change the name on the sign of the dealership. That’s what you want to guard against. It’s a once in a lifetime thing, but it only has to happen once.