Fall 2012 issue of Horizons

Helpful Ideas You begin by looking at where you are vulnerable to losing the most and then try to find ways to prevent and/or detect loss. Here are some ideas to get started. ∙ Start and maintain a list of things that could cause great disruption or loss to the business. ∙ Make time, at least once a month, to get out of the office and away from distractions to review the list and prioritize those that are more urgent and need immediate attention. ∙ Discuss your concerns with trusted advisors. Other business owners, bankers, insurance brokers and CPAs can all give you advice and other perspectives on what should be on your list or how they may have dealt with the same problem. Try to meet with each of them at least once a year to ask them for feedback about what concerns you and if your mitigation plan is on target. ∙ Understand that while one person cannot do it all, one person does need to drive the process. Assign individuals in the organization responsibility for having a plan to mitigate risks and hold them accountable to finding solutions. ∙ Trust, but verify. Delegate responsibility for developing disaster plans and give the authority to implement. Meet periodically to review the plan and make sure it is on target. The Risk of Hail A risk that could have a broader and more long-lasting impact on an automobile dealership would be a weather-related disaster like hail. The individual in your dealership who should be responsible for a hail disaster plan should be the person most familiar with vehicle inventories.

This individual should have a detailed understanding of the insurance coverage, including the process for notifying the insurance carrier if a hailstorm hits the dealership. The first question that will be asked by the insurance company is what the dealership’s plans are for preventing further losses that could occur if windows are broken and the interiors are damaged by water. While some vehicles could be moved indoors until windows are replaced, there could be too many to move. It may be possible to have a prearranged agreement with a glass vendor capable of handling significant volume and to give priority to replacing the dealership’s damaged vehicle windows before helping other dealerships. The same type of arrangement could be made with a dent repair vendor. Another component that is important to a hail disaster plan is how to market the damaged vehicles. Salespeople will need to be trained to consistently offer appropriate options and disclosures to customers.

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