- Joe Coffin | DSI Corporate Office
As you review the lineup of companies to conduct your annual parts inventory, there are numerous considerations that you focus on. How much is it going to cost? How long is it going to take? How accurate will it be? How much will my business be disrupted? When will I get the final reports? There is one consideration, however, that is overlooked by the majority of dealership staff seeking to have an inventory performed... is the inventory company adequately insured?
There are hundreds of work-related injuries each year that take place in car dealerships. Think about it, you can probably look around your immediate area right now and find a tripping hazard or something that would do a number on your toe. How about that piece of foam that’s taped to the steel support beam up on the second floor... it used to be bright yellow, but after 10 years it blends in nicely with its dust-covered surroundings. The good news is, you maneuver around your parts department all day and know every box that sticks out, every low beam, every slippery spot there is. When an inventory company comes in, they aren’t as familiar with the facility and layout.
As you review the lineup of companies to conduct your annual parts inventory, there are numerous considerations that you focus on. How much is it going to cost? How long is it going to take? How accurate will it be? How much will my business be disrupted? When will I get the final reports? There is one consideration, however, that is overlooked by the majority of dealership staff seeking to have an inventory performed... is the inventory company adequately insured?
There are hundreds of work-related injuries each year that take place in car dealerships. Think about it, you can probably look around your immediate area right now and find a tripping hazard or something that would do a number on your toe. How about that piece of foam that’s taped to the steel support beam up on the second floor... it used to be bright yellow, but after 10 years it blends in nicely with its dust-covered surroundings. The good news is, you maneuver around your parts department all day and know every box that sticks out, every low beam, every slippery spot there is. When an inventory company comes in, they aren’t as familiar with the facility and layout.
As the parts manager, general manager, fixed operations director, whatever your role may be... the last thing you need is for one of the inventory associates to cut themselves, bang their head, or trip and hurt themselves. What do you do if something like this happens? If you made sure that your inventory company insures its associates, you sigh in relief. If this detail slipped your mind in the research or hiring process, you may want to prepare for potential medical costs and workers compensation payments.
According to the National Safety Council, the average work-related injury cost is $38,000. After you factor the indirect costs of the injury, disruption to operations, legal fees, and disability payments, the total cost of the $38,000 injury could exceed $150,000.
Insurance is one of those things that we begrudgingly pay for every month and hope to never use. When you allow a third-party vendor into your dealership, you are responsible for anything that happens with that vendor. So when that vendor doesn’t insure itself or its associates, it means the dealership’s liability will be tested if anything unfortunate happens.
At the absolute minimum, your parts inventory company should carry liability and workers compensation insurance for every individual involved in performing your parts inventory – this goes for employees and independent contractors. More reputable inventory companies may also carry insurance policies to protect against theft or damage to dealership property.
Next time you perform a Google search for a parts inventory company, make sure to ask what insurance and liability coverage they offer as protection to their clients. Doing so will save a lot of hassle, and potentially money, in the event of a mishap.
According to the National Safety Council, the average work-related injury cost is $38,000. After you factor the indirect costs of the injury, disruption to operations, legal fees, and disability payments, the total cost of the $38,000 injury could exceed $150,000.
Insurance is one of those things that we begrudgingly pay for every month and hope to never use. When you allow a third-party vendor into your dealership, you are responsible for anything that happens with that vendor. So when that vendor doesn’t insure itself or its associates, it means the dealership’s liability will be tested if anything unfortunate happens.
At the absolute minimum, your parts inventory company should carry liability and workers compensation insurance for every individual involved in performing your parts inventory – this goes for employees and independent contractors. More reputable inventory companies may also carry insurance policies to protect against theft or damage to dealership property.
Next time you perform a Google search for a parts inventory company, make sure to ask what insurance and liability coverage they offer as protection to their clients. Doing so will save a lot of hassle, and potentially money, in the event of a mishap.
