Pub. 4 2014 Issue 1

9 gically changing their coverage’s during 2013 and will continue into 2014. Premiums and Deductibles are rising and coverage choices are shrinking. The number of Insurance Carriers that are offering Floor Plan Insurance Coverage are dwindling quickly. And for those Carriers that stay in it, they are raising premiums significantly and eliminating Hail Deductible Aggregates. After Hurricane Sandy, Insurance Carriers starting limiting Ancillary Insurance items, Flood Coverage and Business Income Coverage’s on their polices, expect more of the same in 2014. In 2014 instead of being Re-Active when a claim happens, be Pro-Active in regards to Risk Management. It isn’t good enough to create a handbook with written policies and procedures; you have to enforce them on a daily basis. What can you do about it? Be Pro-Active! Make sure you look at every Insurance option available to you. It could be switch- ing Floor Plan Providers, Self-Insuring areas of your Business Insurance and making sure you get several quotes from differ- ent providers. Worker’s Compensation Insurance In 2013 we saw the first year of NCCI’s three year plan to increase the primary/excess split point from $5,000 to $15,000. In 2014 it will increase to $13,500. If you are unsure of what that means, make sure you sit down with your Insurance Agent and discuss it with them. Many Auto Dealers have seen their mod’s increase and unless they control losses they will continue to see them increase. Insurance Companies writing Worker’s Com- pensation Insurance in Illinois have seen limited if any profits. That means one of two things. They stop offering Work Comp Insurance or they raise rates and become selective in who they offer coverage and discounts to. While it is impossible to elimi- nate the possibility of a claim happening, it is possible to be Pro- Active to eliminate the chance of a claim with proper controls and enforcement of those controls. Do a walk through each department with your manager and point out the items that may cause a claim, then require them to enforce that on a daily basis. The bottom line is that being Pro-Active can significantly im- pact your BottomLine. Not only is it the expense of Insurance and Deductibles, but consider the amount of time and productivity you lose if you are not Pro-Active. Start by bringing in your Agent or a Consultant and seek advice on the best way to proceed in 2014, implement the proper controls and procedures, and exhaust all avenues for the best Insurance Products for your Dealership. Are you going to be Pro-Active or Re-Active this year?  Rob Messer is the Managing Partner of RetinQ Consulting Group. RetinQ specializes in Insurance Advocacy Auto Dealer, F&I Product and Training and Automotive Employee Recruitment for the Auto Dealer. Rob can be reached at rmesser@retinq.com or 855.213.3766. Reach your target audience a ordably. advertise get results DON BROWN Advertising Sales 855.747.4003 donfbrown@verizon.net