Pub. 13 2014-2015 Issue 4

N E W J E R S E Y C O A L I T I O N O F A U T O M O T I V E R E T A I L E R S I S S U E N O . 1 , 2 0 1 5 12 new jersey auto retailer Legal & Regulatory Compliance Series Q I have an older building. What happens if I have a claim and the local codes and ordinances have changed re- quiring upgrades to my building? A Ordinance and Law coverage is available to cover the required upgrades such as sprinkler sys- tems, handicapped access, etc. Limits selected are over and above your insured building limit and limits for this coverage will vary based on the age of the building, current features, and replacement value of the building. Q Do I need to cover my em- ployees’ tools? A Most union contracts require that tool coverage be provided. For non-union shops, there is no requirement, but how effective is a tech without his/her tools? I recommend this coverage be provided in all cases. Em- ployees should keep a running inventory of their tools along with pictures in the ev nt of a claim. Q How much Crime coverage do I need? A It’s up to you. The area where we see the most claims activity is in Employee Dishonesty. You should have at least $100,000 in coverage. Also, Computer Fraud and Funds Transfer Fraud are two areas often overlooked, but are becomingmore andmore necessarywith electronic transfers now being the preferred way to transfer funds. Other recommended crime coverages are Depositors Forgery, Money & Securities, Money Order &Coun- terfeit Currency and Pension Plan Bond. Q How much Garage Liability do I need? A Garage Liability is the “meat and potatoes” of dealer insurance with regard to third party liability. It covers third party bodily injury and prop- erty damage. The limit of protection typi- cally ranges from $300,000 to $1,000,000 (plus an Umbrella increasing that limit.) Q Are there different types of coverages available to protect my customers’ vehicles that are in the shop for service? A Yes. Direct Primary coverage pays without regard to negligence or other insurance. This is the broad- est and most liberal coverage. Legal Liability coverage pays only when you are found to be legally liable for damages. Direct Excess coverage pays excess over any other collect- able (i.e.: customers’ insurance). Most deal- ers choose Direct Primary in the interest of customer satisfaction. Q What are the “professional” or “special” coverages that I need? A There are many specific Errors & Omissions (E&O) coverages that are available. These cover- ages protect you in the event of an error or omission in the handling of retail sales orders, F&I documents, etc…they are as follows: 1. Federal Odometer E&O 2. Prior Damage Disclosure E&O Direct Primary coverage pays without regard to negligence or other insurance. This is the broadest and most liberal coverage. COVERED  continued from page 10