HOW YOUR AUTO BODY SHOP’S COMPLIANCE SCORE CAN SAVE YOU MONEY AND BRING MORE WORK
Author: Steven Schillinger
Owning and operating a body shop is more expensive than ever. On top of the costs of personnel, training and equipment, shop insurance premiums keep going up – even if you haven’t filed any claims. Fortunately, there are several things you can do to improve the chances …
Fortunately, there are several things you can do to improve the chances that your insurance costs won’t outpace your ability to run your business. It starts with your compliance credit score, and you can get it free from a data analytics company called RecsLock.
Every shop in the country has a compliance credit score, a number of of companies – including automakers and insurers – are monitoring it.
A good compliance credit score has many benefits for a collision repair shop, including better chances for vendor credit; increased negotiating power; lower worker’s compensation rates; better employee retention; an absence of EPA/OSHA audits and fines; and lower insurance premiums.
George Avery worked for State Farm as an internal consultant for 31 years and was the chairman of the Collision Industry Conference for two years. He is a highly respected public spokesperson for the collision repair industry who makes presentations at number of industry conferences, including the upcoming Collision Industry Electronic Commerce Association Symposium in Tampa, Fla., scheduled for Sept. 17-19.
He has extensive knowledge from both sides of the industry –insurance companies and collision repairers – because he grew up in the body shop world before working for State Farm. Avery sees multiple benefits for shops that can stay compliant and knows that insurers will value it on many levels.
“This data is now in the cloud and available to so many more entities, [so] all of a sudden repair facilities are being judged more carefully for the way they fix cars and the way they comply with literally every aspect of their business,” Avery said. “It’s being monitored in a completely different way now and insurance companies are more discerning and only consider shops that have better numbers in these areas. It’s for the benefit of the insurance industry, the collision repairers and ultimately the consumer as well. Insurers want to know that they’re working with the best shops in their portfolio and this data can make that happen.”
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