Styling & Performance - June 2008 - (Page 26)

In structuring your business, don’t forget to forge strong, reliable relationships with quality manufacturers and suppliers whose products are painstakingly engineered, well-known and market-tested. A good manufacturer welcomes such relationships and supports installers with all the necessary specs and instructions because it beneﬁts everyone professionally as well as legally. The goal, of course, is to share in the protection of the manufacturer’s policy. COVER YOURSELF Steve Surber, area vice president of Arthur J. Gallagher & Co. in Aliso Viejo, California, and a motorsports industry insurance specialist, couldn’t agree more. In fact, he asserts, a smart retailer-installer will go much farther in covering all aspects of his or her business. Install shops often mistake a manufacturer’s Certiﬁcate of Insurance for a guarantee of protection, but “that certiﬁcate really doesn’t say much,” according to Surber. Instead, the installer should look for a Vendor’s Endorsement in which the manufacturer’s insurance carrier has a duty to defend the vendor. “The vendor’s endorsement puts you in the passenger seat with that manufacturer’s policy,” Surber emphasizes. Look for manufacturers carrying a minimum of $1 million in coverage, and keep in mind all the policy’s conditions and limitations. Improvising or improperly installing a product normally “voids the manufacturer policy and puts the liability back on the installer,” Surber warns. A retail-installer truly interested in protecting his operations will ask to remain covered under a manufacturer’s policy even after terminating a business relationship, just in case there are future issues with previously installed products. A smart shop owner will also carry and frequently update his own Garage Liability and Commercial General Liability policies, the latter of which should include Garage Keeper’s Legal and Products Completed Operations coverage. In obtaining such coverage, always assess your business’ needs honestly with an experienced motorsports broker. Don’t be tempted to withhold information — or worse, lie — about your operations to save on premiums, and don’t be taken in by cut-rate policies. “If the price is too good to be true, or is less than that of your peers, there has to be a reason,” Surber says. ABOVE: Consult with a lawyer early on. It might cost you a few bucks but can save you ten-fold when or if trouble hits. CARE FOR CUSTOMERS Genuine concern for customers can also go a long way toward reducing liability risks. Never underestimate the importance of prompt, knowledgeable service and quality workmanship performed in a courteous, friendly manner. “That way when your customer breaks something, he doesn’t curse you and call someone else, especially a lawyer. He comes to you and deals with the problem,” Livingston offers. Take time to educate customers about how an application might change vehicle dynamics. Make sure vehicle owners understand every aspect of their install, warranty and waiver, and document these discussions with their signatures. According to Maurice Rozo — owner of Off Road Unlimited, a Burbank, Californiabased manufacturer-retailer of off-road suspension products — true customer care also requires an experienced shop staff that follows manufacturer specs and instructions to the letter. “You have to have guys under you who are responsible and who have been around for a while,” he says. Moreover, an installer shouldn’t even think about substituting a single nut, bolt or kit item or modifying an application in any way. If the manufacturer speciﬁes a suspension product for a certain year, make and model, installing it on a different iteration—no matter how similar the vehicles may be—is a gamble your shop could lose. Upon completing the install, Rozo cautions installers to “take that extra ﬁve minutes” to re-inspect everything. “Test drive the vehicle, make sure the job’s done right,” he says. “Remember, you’re dealing with someone’s life.” Most importantly, trust your instincts. Don’t be afraid to lose customers over suspension modiﬁcations your experience says are risky or outside the vehicle owner’s needs or abilities. If, despite all your efforts, you ﬁnd yourself in legal trouble, “do not call the plaintiff or his attorney or write them,” Hansen emphasizes. “That’s a waste of time and you may end up giving them valuable information they can use against you.” Instead, leave matters to your legal counsel. THE BOTTOM LINE In taking these basics to heart, don’t assume they offer total immunity. Very little can stop a determined plaintiff from ﬁling an action. Nonetheless, due diligence can help reduce exposure and strengthen your defense should you wind up in court. Above all, keep abreast of legal issues through industry trade organizations, publications and seminars. For advice, ask the experts. “There’s a lot of legal misinformation out there being transmitted from installer to installer,” Hansen concludes. “You need to get the facts from reputable sources.” 26 Styling & Performance I Uniting The Specialty Parts Industry

Table of Contents Feed for the Digital Edition of Styling & Performance - June 2008

Styling & Performance - June 2008 Contents Soapbox Buzz Making Money with 1967-72 Chevrolet/GMC Trucks, Part II Red, White, Blue... & Green Limiting Installation Liability The House That Jack Built MAP vs. MVP Pricing Supply Line Distributor Directory

Styling & Performance - June 2008

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