美国A.M.Best保险风险管理全集-auto_body_repair

Related Classifications Automobile Accessories Stores

Automobile Dealers — New and Used — Retail Automobile Repair Shops and Oil Change Centers Gasoline Stations — Full-Service and Self-Service

Tire Dealers — Retail

Towing Services

Vocational-Technical Schools — Public and Private

Special Exposures

Improper use of equipment

Student interns

Dried blood on vehicles involved in injury accidents

Paint overspray

Drying chambers

Lead-based paints

Mechanics’ tools

Risk Description

Automobile body repair shops, also known as collision centers, repair vehicles that have been damaged in accidents by restoring their exteriors (and in some cases, interiors) to bring them back to pre-accident condition. In addition to handling collision repairs, some shops may also perform custom paint jobs, for example, on buses, police cars, fleet trucks, or vehicles with company logos. Still others may specialize in repairing certain types of vehicles, such as sports cars, luxury vehicles (e.g., limousines), antique or

―classic‖ cars, or other high-value vehicles, such as race cars or construction vehicles. It is not uncommon for body shops to maintain complementary operations, such as towing services, gas stations, car rental agencies, and the sale of tires and/or used vehicles. While some shops also perform mechanical repairs, many will contract out that portion of the job. Among the tasks that are often subcontracted out are the repair or replacement of damaged glass, airbags, stereos, upholstery, and/or the computerized elements of a vehicle’s control console.

Most body shops are privately owned, although in recent years, consolidation has been growing in the collision repair industry as many shops are choosing to become affiliates or independent franchises of regional or national chains. According to a U.S. Bureau of Labor Statistics report, there were 36,690 body shops in operation nationwide in 1997. The industry generated total sales of $19.8 billion during that same year. (These figures do not reflect sales generated by dealership-run body shop facilities.)

According to figures from the Automobile Service Association (ASA), approximately half of all body shops earn between $500 thousand and $1.5 million annually, although some report earnings of less than $500 thousand while others claim an annual revenue in excess of $2 million. An average shop handles 20 –30 repairs per week at an average ticket of $1,690. Forty-five percent of this price tag can be attributed to the cost of replacement parts, and 49% is the result of labor costs, while the remaining percentages are devoted to shop supplies and disposal fees. Many shops maintain close alliances with certain auto paint manufacturers and tend to view these relationships as a critical factor in their continued success.

Most auto body repair shops are one-story structures that include a reception and customer waiting area, offices, a conference room, one or more storerooms where various auto parts and supplies are kept, an employee lounge (possibly with a small kitchen), restrooms, and a parts receiving area. The insured may store its specialized vehicles in a separate garage or outdoor parking area along with customer-owned vehicles that are awaiting repairs or pickup. The heart of the operation is the shop area where all vehicle repairs are performed. This area is likely to include several hydraulic lifts as well as a frame straightening machine. Also included here, although attached to the facility as independent structural units, are one or more paint booths (where painting operations take place) and one or more drying chambers (where vehicles are ―baked‖ immediately af ter painting so that the paint and topcoat dry and harden quickly according to the paint manufacturers’ specifications). In some cases, the paint booth will be constructed so that it performs a dual function, acting as the drying chamber as well.

The hours of operation for a typical repair shop are from 8:30 a.m. – 5:30 p.m., Monday through Friday, with shortened hours on Saturdays, from 9:00 a.m. – noon. Most shops are closed on Sundays. Most insureds will experience a peak season during the summer months when vacation travel leads to increased

traffic in many areas. Insureds in northern climates are also likely to see a rise in business during the winter months due to vehicle damage caused by weather- related accidents.

A total of 201,675 workers are employed in auto body shops across the United States. An average shop maintains a staff of 14, including 8 automotive technicians. Typically, at least four technicians on staff hold certification from the National Institute of Automotive Service Excellence (ASE) in collision repair and refinishing or a related area, such as mechanical repair. Most technicians receive their training through programs offered at vocational- technical (vo-tech) schools, two-year colleges, or through various in-house or manufacturer-sponsored training seminars (e.g., those held by paint manufacturers or auto makers). The Inter-Industry Conference on Auto Collision Repair (I-CAR) also sponsors training seminars in collision repair for which participants are charged a fee and receive a completion certificate. However, no formal certification in this field is offered by I-CA R at the time of this writing. Most shop owners themselves are certified or have received some training in automotive body repair.

While some sh ops may hire employees to act as ―jacks of all trades,‖ performing various aspects of collision repairs from start to finish, others will structure their operations so that the various technicians’ duties are highly specialized, with each worker focusing on a single step in this often complex process, such as disassembly, paint preparation, painting, or detailing. Other shop personnel will usually include a receptionist and one or more case managers who handle accounting and office operations, as well as customer relations and insurance claims processing. Housekeeping duties are often contracted out to a cleaning service. If secondary operations (e.g., towing services, car rental agencies, gasoline stations, stereo or used car sales, etc.) are part of the insured’s setup, then additional employees with appropriate skills will be hired to fill the necessary positions (e.g., tow truck drivers, car rental agents, gas pump attendants, salespeople, etc.).

Toward the end of the 20th century, the manner in which insurance companies refer their clients to auto body shops changed dramatically. Until recently, if car owners needed body work on a vehicle that had been involved in an auto accident, an appraiser from their insurance carrier would come out and view the damaged vehicle, preparing an estimate of what the required work was going to cost. The owner was then free to locate the body shop of his or her choice that would be willing to perform the repair work, hopefully keeping costs within the ap praiser’s estimate. Negotiation between the body shop and the claims appraiser was sometimes necessary until a total price for the work could be agreed upon by all parties. While some insurance companies still operate in this manner, for many others the process by which they refer clients to auto body shops can be compared to the system currently used by medical HMOs. In the body shop industry, programs where insurance companies have an informal or formal/contractual agreement with various auto body repair shops are commonly called direct repair programs (DRPs). If a client is involved in an accident and work is required to restore the vehicle, he or she is given a list of

―preferred‖ shops from which to choose. Although clients (in most cases) ar e not strictly obligated to use one of these shops, they are often strongly encouraged to do so. Ultimately, DRPs save both time and payroll costs for insurers since part of the agreement is that the shop’s estimate will be accepted as accurate, and an appraiser’s estimate is not necessary for the claims process to proceed. DRPs also help reduce insurance fraud since the check is often paid directly to the body shop, and a client cannot ―pocket‖ the money without having the actual repairs performed on the damaged vehicle.

Collision repair is becoming increasingly technical in terms of the tools that are used. For example, a computerized measuring system can be used to identify the full extent of damage to a vehicle by measuring various reference p oints and then checking them against the manufacturer’s specifications, enabling technicians to restore the vehicle to its pre-accident condition. Computerized collision estimating systems are capable of generating extremely accurate repair estimates by calculating both labor time and the cost of parts in addition to producing a digital or video image of the damage that can be attached to the estimate and e-mailed to the insurance company for immediate approval. Digital cameras are often used to take ―before‖ and ―after‖ photos that can be downloaded and stored in the shop’s customer files on its computer database. Computerized inventory tracking systems that are used to keep abreast of in-house paint and supply levels are not uncommon. Some insureds subscribe to a computer software service that identifies the various parts on nearly every make and model of vehicle on the road. Using this software, the technician can determine the specific parts that are needed to complete a particular job, generate an order for those parts, and e-mail the order directly to the parts supplier, thus eliminating the need for time-consuming phone calls.

Welding techniques are becoming more and more sophisticated with less and less waste. The two most common types of welding performed in this industry are metal inert gas (MIG) welding and resistance spot

welding. MIG welding equipment (commonly called ―squirt guns‖) is popular because of its quick training time and ease of use. Resistance spot welding is used to fuse together sheet metal and is capable of forming a pre-accident, factory-type weld while producing far less fumes than MIG welders. A third type of welding, tungsten inert gas (TIG), is often used on lighter weight metals, such as aluminum or titanium, and is noted for its precision, reduced metal distortion, and minimal after-welding cleanup. While all automotive welding equipment operates on a certain frequency, TIG welding guns operate on a much higher frequency than MIG welding guns, and this higher frequency produces a magnetic field that can greatly interfere with a vehicle’s computerized systems by erasing whatever programming was initially installed at the factory. For this reason, many auto manufacturers specifically advise against performing TIG welding operations on their vehicles. Nevertheless, in looking for ways to reduce the overall weight of vehicles and improve their gas mileage, many auto makers are currently experimenting with the use of aluminum in auto bodies. If this trend continues, it is likely to contribute to an increased use of TIG welding in the years ahead. Lastly, special adhesives (e.g., epoxies, acrylics, and urethanes) that are formulated specifically for auto body repair purposes may be used in lieu of weld ing.

Another trend currently affecting this industry is a nationwide shortage of skilled workers. The range and degree of technical knowledge and skill that is required of auto body technicians has increased dramatically in recent years due to the rising use of highly specialized and/or computerized equipment in this business. Decreasing enrollment in vocational-technical programs for auto body repair programs has greatly reduced the pool of qualified candidates from which employers may choose. In order to retain the qualified technicians that they do have on staff, many shops are becoming highly competitive in both wages and benefits, and strive to create as pleasant a work environment as possible. Nevertheless, the shortage of qualified technicians may soon reach crisis proportions as many positions remain unfilled.

The Automotive Service Association (ASA, which may be reached at https://www.doczj.com/doc/d32917227.html,) represents the auto body shop industry as well as the auto repair industry in general. Two related associations are the Automotive Body Parts Association (ABPA, which may be reached at https://www.doczj.com/doc/d32917227.html,) and the Paint, Body and Equipment Association (PBEA, which may be reached at https://www.doczj.com/doc/d32917227.html,).

Materials and Equipment

Painting equipment and supplies: paint guns; blow guns (for drying out crevices prior to painting); hoses; mixing bank; paint gun cleaning machine with built-in recycler; primer (i.e., a basecoat that is applied to vehicle exteriors and allowed to dry before painting is done); paint; paint thinner; paint thinner recycling machine; lacquer/topcoat; color matching tools (e.g., handheld spectrophotometer); color mixing software (tells the paint technician the proportions of paint needed to prepare a certain color); infrared hea ting devices; gram scale (for measuring proportions of paint during mixing); mixing sticks; masking tape (regular and foam); masking paper or ―wrap‖ (i.e., rolls of plain brown paper used to wrap vehicles in preparation for painting); pre- filters, main filters, and exhaust filters (for use in spray booth ventilation systems); towels, blankets, and rags; uniforms; respirator equipment.

Repair equipment and supplies: frame rack; wheel alignment machine; pneumatic metal cutting guns; cutting torches; stud gun; tungsten inert gas (TIG) welders; metal inert gas (MIG) welders (also called

―squirt guns‖); resistance spot welders; computerized collision estimating systems; digital cameras; computerized measuring systems (used to identify the full extent of damage by measuring multiple reference points against vehicle specifications on a computer simulation); adhesives (e.g., epoxies, acrylics, and urethanes); sanding/grinding equipment; mechanics’ tools; safety goggles; body filler; tanks of compressed CO2 (used for MIG welders); washer and dryer.

Standard office equipment: computers; office furniture; fax machines; copiers.

Process or Service

After a vehicle has been involved in a collision in which it sustained repairable damage to its exte rior

and/or certain elements of its interior, the owner will typically drive it into a shop or (where the car is inoperable) have it transported to the body shop by tilt-bed or tow truck. While some body shops will use their own vehicles to bring in damaged vehicles, others will rely on an outside towing service to perform such services.

With the new Direct Repair Programs (DRPs) that are in place with many insurance companies, the car owner may be given a list of shops from which to choose for having the necessary repairs done. When the

vehicle arrives at a shop that holds a DRP agreement with the car owner’s insurance company, an estimate of repair costs is prepared by the case manager for both the car owner and his or her insurance company. Often, these estimates are sent via e-mail to the insurance company and repair approvals can be received from insurers within minutes. With a DRP, the insurance company accepts the shop’s repair estimate and does not dispatch a claims appraiser to view the damaged vehicle personally (unless an estimate seems unusually high, in which case an appraiser may be dispatched so the shop can justify the cost to the insurance company). If no DRP program is in place, then a claims appraiser from the car owner’s

ins urance company will generally come to view the vehicle (either at the shop or the owner’s residence or place of employment) and prepare an estimate. The owner can then take the vehicle to the body shop of his or her own choosing. The body shop’s case m anagers work closely with insurance appraisers and claims adjusters to ensure the accuracy of initial estimates, to see that all authorized work is performed, and to verify payment of claims.

Provided that the estimate is acceptable to all parties, the repair work can then be scheduled. Some body shops will require a deposit for parts before the work can commence. Most body shops require car owners to sign a standard release form that authorizes them to do the required work on their vehicle. An

incre asing number of insureds now use digital cameras to take ―before‖ and ―after‖ photos and download them into their computerized customer files to protect themselves against possible claims of faulty repair work. Some outfits will provide loaner cars to their customers while their vehicles are being repaired, although this is becoming less commonplace due to liability concerns. More often, customers are referred to a car rental agency, some of which may be directly or indirectly affiliated with the body shop.

Most parts are ordered on an as-needed basis and may be obtained from a variety of suppliers, including parts manufacturers, auto dealerships, auto supply/parts retailers, and salvage operations (i.e., junkyards). Some parts may be new while others may be rebuilt by the manufacturers (e.g., starters, alternators, etc.). Auto parts fall into two basic categories: original equipment manufacturer (OEM) and aftermarket. OEM parts are produced by the various automakers and meet the exact specificat ions of the vehicle for which they have been designed, so there is never any question as to whether or not they will ―fit.‖ A lthough they are generally lower priced than OEM parts and are therefore favored by some shops as a cost saving measure, afterma rket parts can be thought of as ―generic‖ parts and are often produced by companies other than the automakers themselves. Thus, they are often designed for use with several different makes or models of vehicles. From the perspective of body shop technicians, aftermarket parts often compare unfavorably to OEM parts since they can result in increased labor time due to the extra effort that is sometimes required to make them fit the vehicle. Additionally, when an aftermarket part cannot be made to fit the vehicle at all, extra time is needed to return it and reorder a different one that hopefully will fit. Once the necessary parts have been ordered, the repair process can begin. The first step is called disassembling. A ll broken glass and deployed air bags are removed from the vehicle, and any blood is removed from the vehicle with anti- bacterial solvents. Damaged exterior panels are removed and the vehicle is double-checked for possible hidden damages that may have gone undetected during the initial appraisal. Torn metal pieces can be removed using a pneumatic metal- cutting gun or cutting torch. The replacement of broken glass is generally done at this stage and may be subcontracted out.

Next, the frame is checked and straightened if necessary. Major structural repair work is performed at this stage. Depending on the extent of the damage, entire interior/exterior panels and/or sections may need to be replaced, and welding equipment or special adhesives are often used to secure them in place. Smaller dents are most often repaired by using a stud gun, body filler, and a sander. The stud gun shoots a stud through the dented panel, and the technician literally pulls it back into shape; body filler is then used to fill in the resulting hole, and a sander smoothes out the filler. This process is repeated again and again until the dented panel has been pulled back into its original shape. Damaged tires will also be repaired or replaced as needed. The body technician will then apply a coat of primer (i.e., a gray basecoat that is applied to a vehicle’s exterior and allowed to dry before painting) to any areas that require repainting.

The vehicle is then moved into the paint booth where it is prepared for the next stage of the process —paintin g. The ―paint prep‖ technician looks the vehicle over closely and sands out any minor imperfections in areas to be painted. The vehicle is washed to assure a clean painting surface and toweled dry. Water droplets are removed from seams and crevices using a blow gun, which forces air at 125 lbs. per square inch through a tiny hose-like opening. All areas of the vehicle that are not going to be painted are covered over with masking paper (i.e., plain brown paper that comes on rolls of various widths). The masking paper is held in place by masking tape, and crevices are filled with masking foam to keep paint from seeping inside the trunk or engine. The paint technician uses either a handheld spectrophotometer or color

card with various color gradients to determine which exact color is the best match for the vehicle. He or she then prepares the appropriate paint mixture using a formula calculated by specialized software; the computer tells the paint technician the exact amount of different color pain ts that must be combined in order to produce the desired color. Using a gram scale, the paint is poured and measured to those specifications, then mixed by hand with a mixing stick. The vehicle is then painted. Since an exact color match is extremely di fficult to achieve, most paint technicians will do something called ―blending‖ where the new paint is blended lightly over the existing paint on adjacent panels so that any color variance is virtually impossible to notice with the naked eye. A topcoat of clear urethane is then applied, and the technician attempts to achieve a thickness that matches the vehicle’s existing ―texture‖ (i.e., glossiness). The vehicle is quickly moved to the drying chamber or, in some cases, it stays put and the paint boot h also acts as a drying chamber. Depending on the paint manufacturer’s specifications, the ―perch time‖ (i.e., the time between when the painting is finished and the drying cycle begins) will vary from 0 – 30 minutes. This drying cycle is referred to as ―baking‖ the vehicle. Various types of heating devices may be used and most are controlled from outside the drying chamber. A ll auto paint manufacturers have a performance sheet, known as a ―p- sheet,‖ that specifies the optimal metal surface temperatur e in order to achieve the best possible paint finish (usually around 140°F). Since climates and outdoor temperatures will vary from season to season and from one region to another, the amount of time that it takes for a drying chamber to reach a given temperature will naturally vary. Therefore, drying times are calculated from the moment that the vehicle’s surface temperature reaches the paint manufacturer’s specifications; a drying time of about 15 – 45 minutes is average. Some shops will attach a m agnetic thermometer to the vehicle’s body to more accurately track the temperature of the vehicle’s exterior panels throughout the drying process. Others will calculate the panel temperatures based on the temperature in the drying chamber itself and the temperature of the vehicle’s exterior panels at the time when the baking process began. The maximum air temperature in a drying chamber allowed by the National Fire Code is 199°F.

The paint prep and painting stages may have to be repeated if parts of a vehicle’s interiors are being painted. Interior panels (e.g., doors) would be painted and dried first, then reattached to the vehicle for the second external paint process. After the vehicle has been baked, it is reassembled, and any upholstery or glass that had been removed is put back in place. The detail technician then takes over. This individual is responsible for preparing the vehicle both inside and out for delivery to the customer. He or she sands out minor flaws or imperfections in the paint job and polishes the vehicle to a uniform shine.

Lastly, any mechanical repairs are performed either by the shop’s own mechanics, or such work is subcontracted out to qualified technicians. Most insureds also contract out the replacement of airbags at this final stage of the process.

Automobile Liability

Generally, automobile body repair shops will experience a significant Automobile Liability exposure; however, this risk will be reduced for those insureds that do not offer towing services. Employees may sometimes use personally owned vehicles to run errands, such as making bank deposits or picking up parts and/or supplies. Some insureds loan cars to customers whose vehicles are being repaired on the premises, while others may have used vehicles for sale that are likely to be test-driven by customers. Tilt-bed or tow trucks are commonly owned and operated by auto body shops. Some insureds may wish to combine their Automobile Liability and General Liability needs under a single Garage policy; in such instances, it is recommended that the underwriter also refer to the Garage Keepers’ Legal Liability section of this classification.

What are the number, age, type, and condition of the vehicles owned by the insured? While some insureds may not own any vehicles at all, many will have one or more tilt-bed or tow trucks for transporting disabled vehicles. Some shops may also maintain a fleet of loaner cars for use by customers whose vehicles are undergoing repairs and/or a modest inventory of used vehicles for sale. Employees may run business-related errands or attend occasional training seminars using personally owned vehicles; in such situations, a nonowned vehicle exposure will exist. Confirm the existence of underlying personal in surance at acceptable limits, and obtain MVRs for all drivers.

What is the frequency of travel and radius of operations? If the insured owns and operates more than one facility at various locations, some management personnel may be required to travel b etween these sites on a daily or weekly basis. Bank deposits will also need to be made daily, and employees may occasionally drive to various retailers or auto dealerships to pick up necessary parts or supplies, although such outfits

usually offer free delivery. While many insureds that provide towing services place a mileage limit on how far they are willing to travel for a customer (e.g., no more than 30-50 miles from their base of operations), others will perform long distance tows of 100 miles or more. What is the insured’s practice? If the insured sells used vehicles, a 10-mile radius from the base of operations is advisable for test-drives since salespeople accompanying the customers are more likely to be familiar with local traffic patterns.

What are the hazards of typical routes? Bad weather (e.g., fog, snow, ice), poor road conditions, traffic congestion, and travel along unfamiliar roads are some of the hazards that the insured’s drivers will face. Tilt-bed and tow truck drivers will face an increased risk of driving during inclement weather since adverse road conditions created by bad weather often contribute to collisions, resulting in disabled vehicles in need of towing. In geographical areas where snow may be a concern, it is a p ositive underwriting sign if the insured’s tilt- bed and tow trucks are equipped with front-end snow plows during the winter months. Accidents can cause extensive traffic backups along roadways; consequently, tilt-bed and tow truck drivers who are trying to reach the scene to pick up a disabled vehicle may be forced to drive along a median strip or the shoulder of a road. Drivers should be thoroughly trained in the safe operation of these vehicles, even under such extreme circumstances. Does the insured offer 24-hour towing services? If so, occasional nighttime travel will be required of drivers, which can cause both increased fatigue and reduced visibility. Have tilt-bed and tow truck drivers been thoroughly trained in proper loading and unloading procedures for all types of vehicles, including SUVs, RVs, buses, and trucks? Less experienced drivers should be paired with a more experienced operator until they have reached an acceptable level of competence in their duties. A loaded tow truck could respond sluggishly or handle awkwardly due to the weight of hauling another vehicle behind it. Shifting of loaded vehicles presents another exposure since vehicles on tilt-bed trucks may shift or roll off while in transit if they have not been properly secured. How are loaded vehicles secured aboard tilt-bed trucks? Some states require that tow operators use two (as opposed to a single) safety chains, in addition to the primary restraining system, when securing towed vehicles. What are the laws in th e insured’s state? Additionally, other standard regulations require vehicles being transported on a tilt-bed truck or conventional tow dolly to be secured by at least four tie-down chains, straps or equivalent devices independent of the winch or loading cable. Failure to stay within the maximum hoisting capacity of the tow truck may cause the disabled vehicle to break away from the truck. Assess the insured’s loss history. Are the insured’s tilt-bed and tow trucks equipped with flashing yellow warning lights as a precaution to passing motorists?

What are the age, training, and experience of the insured’s drivers? Employees will generally range in age from 18 to 65. If any of the insured’s drivers are below age 25, a youthful operator exposure will exist. Some insureds will have high school-age vo-tech students working for them as interns. Allowing interns to drive any company-owned vehicles should be strongly discouraged as liability from resulting accidents will most likely fall to the insured. Although a commercial driver’s license (CDL) is not usually required for tilt- bed or tow truck drivers, only licensed drivers should be allowed to operate company-owned vehicles. Obtain MVRs on all of the insured’s drivers. Since the Fair Credit Repor ting Act requires written permission from the driver to obtain MVRs, the insured should make obtaining this permission part of the hiring process.

If the insured sells used vehicles or loans out vehicles to customers who are having theirs repaired on t he premises, then the Automobile Liability policy should be written to cover any third party damages that might occur during the operation of such vehicles (e.g., if an accident happened during a test-drive), regardless of who is operating the vehicle at the time of the accident. Are prospective buyers required to have an employee accompany them during test- drives? Before allowing customers to test-drive or borrow vehicles, a photocopy of their driver’s license should be made and kept on file. What is the insured’s practice? For more information on this exposure, refer to the Automobile Liability section of the Automobile Dealers — New and Used — Retail classification.

Is there a vehicle maintenance program in place? Company-owned vehicles should be kept in good condition, repaired promptly as needed, and inspected regularly. What is the insured’s practice? Unless they are certified mechanics, employees should not be allowed to repair or assist in the repair of any company-owned vehicles.

Automobile Physical Damage

Auto body repair shops are likely to have at least one company-owned vehicle, and many will have one or more trucks that are designed to carry or tow disabled vehicles. This exposure will be increased for

insureds that maintain an inventory of used vehicles or a fleet of loaner cars since these vehicles will also be covered here. Hazards will include driving in bad weather and navigating in and around accident scenes. The Automobile Physical Damage exposure for body repair shops will be significant.

What are the age, type, and condition of the insured’s specialized vehicles? Some body shops will have one or more tilt-bed or tow trucks for transporting disabled vehicles. In addition, some insureds will have a modest fleet of loaner cars for use by customers whose vehicles are undergoing repairs. Some outfits may also maintain an inventory of used vehicles for sale, which will also be covered here.

What is the frequency of travel and radius of operations? Most insureds that offer towing services will usually have a limit on how far they are willing to travel for a towing job (e.g., no more than 30-50 miles from their base of operations), although some may accept long-distance towing jobs. If the repair shop sells used vehicles, does it place any restrictions on how far customers can test-drive them (e.g., 10 miles from the base of operations)?

What are the hazards faced by the insured’s drivers? Bad weather (e.g., fog, snow, ice), poor road conditions, traffic con gestion, and travel along unfamiliar roads are some of the hazards that the insured’s drivers will contend with. Tilt-bed and tow-truck drivers will face an increased risk of inclement weather hazards since such conditions often contribute to accidents, resulting in vehicles being disabled and in need of a tow. If the insured operates in an area where snow may be a concern, it is a positive underwriting sign if at least one company-owned vehicle is equipped with four-wheel drive and/or has an attachment for a front-end snow plow. Since roadway collisions can often lead to extensive traffic backups, tilt-bed and tow truck drivers who are attempting to reach disabled vehicles at an accident scene may be forced to drive along a median strip or the shoulder of a road. Drivers of these vehicles should be thoroughly trained in their safe operation, even under such extreme conditions. While loading vehicles at accident scenes, are personnel advised to place road flares both in front of and behind any disabled vehicles as an added precaution to passing motorists? Does the insured offer 24-hour towing services? If so, occasional nighttime travel will be required of some drivers. Nighttime driving can lead to fatigue as well as reduced visibility.

False Pretense coverage is strongly recommended for insureds that sell used vehicles since this will protect them in situations where they were led to believe that an individual was interested in purchasing a vehicle, but instead, that person steals the vehicle once possession of the car or its keys has been relinquished to him or her. The most practical loss control measure against this type of exposure is to ensure that an employee accompanies all potential buyers when taking vehicles for test-drives. Management should also require all personnel to make a photocopy of customers’ driver’s licenses before allowing them to test-drive a vehicle. Under no circumstances should an unlicensed driver be allowed to take a test-drive, except as a passenger in the vehicle.

Maintaining strict key control is another crucial loss control measure. If keys to vehicles are kept on a keyboard, the board should be situated in an area that is inaccessible to customers. If lockboxes (i.e., small safe-like boxes that are attached externally and held in place by the vehicles’ windows) are used, are keys kept in these lockboxes overnight? It is preferable if all keys to lockboxes and used vehicles for sale are stored in a fire-resistant, NRTL- listed safe during off-hours. What is the insured’s practice? Determine who has access to the lockbox keys. Are salespeople required to sign a sign-out sheet before accompanying customers on test-drives? For more information, refer to the Automobile Physical Damage section of the Automobile Dealers — New and Used — Retail classification.

Does the insured have a vehicle maintenance program in place? All company- owned vehicles should be kept in good condition, repaired promptly as needed, and inspected regularly. Unless they are certified mechanics, employees should not be allowed to repair or assist in the repair of any company-owned vehicles.

Where does the insured store its vehicles when they are not in use? Some insureds store their vehicles in a locked garage, while others may have a designated parking area on the premises. For most insureds, outdoor parking areas will not be fenced in; however, timed, outdoor floodlights are recommended at night in all outdoor areas where specialized vehicles may be parked. A re all specialized vehicles equipped with anti-theft alarms and permanently etched with a second set of concealed identification numbers that are registered with the National Crime Prevention Association?

Theft and vandalism are a potential threat for insureds that sell used vehicles or maintain a fleet of tilt-bed or tow trucks. What measures have been taken to protect such vehicles? The installation of strategically placed outdoor surveillance cameras and floodlights, along with regular police patrols is su ggested. Have ―No Trespassing‖ signs been posted around the facility’s perimeter?

General Liability

Visitors to automobile body repair shops will face the possibility of slips, trips, and falls. However, the General Liability exposure will be minor since most visitors are not allowed into the shop area where repairs are performed. Individuals (e.g., tow truck drivers from outside outfits, equipment repair personnel) who enter repair, painting, or drying facilities will face many of the same h azards as the insured’s workers. What is the layout of the premises? Most auto body repair shops are one-story structures that include a reception and customer waiting area, offices, a conference room, one or more storerooms where various auto parts and supplies are kept, an employee lounge (possibly with a s mall kitchen), restrooms, and a parts receiving area. The insured may store its specialized vehicles in a separate garage or outdoor parking area along with customer-owned vehicles that are await ing repairs or pickup. The heart of the operation is the shop area where all vehicle repairs are performed. This area is likely to include several hydraulic lifts as well as a frame straightening machine. Attached to the facility as independent structural units are one or more paint booths (where painting operations take place) and one or more drying chambers (where vehicles are ―baked‖ immediately after painting so that the paint and topcoat dry and harden quickly according to the paint manufacturers’ specifications). In some cases, the paint booth will be constructed so that it performs a dual function, acting as the drying chamber as well.

The hours of operation for a typical repair shop are from 8:30 a.m. – 5:30 p.m., Monday through Friday, with shortened hours on Saturdays, from 9:00 a.m. – noon. Most shops are closed on Sundays. Many insureds will experience a peak season during the summer months when vacation travel leads to increased traffic. Insureds in northern climates are also likely to see a rise in business during the winter months due to vehicle damage caused by weather-related accidents.

What are the average and maximum numbers of visitors to the premises daily? Depending on their scope

of operations and the time of year, insureds will average between 20 and 40 visitors per day. Typical visitors would include customers, delivery personnel, Environmental Protection Agency (EPA) inspectors, sales representatives from auto paint and parts manufacturers, tow truck drivers (from o ff-site towing services), employees’ family members, and vocational- technical (vo-tech) instructors who will be checking periodically on their student interns’ performance. Vo-tech students who are working as paid or non- paid interns for the insured may be covered under Workers’ Compensation or General Liability, depending on the applicable laws in the insured’s state and whatever contractual agreements have been made with the participating educational institution. Refer to the Workers’ Compensation s ection of the Vocational-Technical Schools — Public and Private classification for more on this issue.

One of the main hazards faced by visitors to auto body repair shops will be slips, trips, and falls. Good housekeeping measures can help to reduce the potential for such incidents. All areas that are accessible to the public should be kept free of debris and clutter. Trash should be removed from the premises on a daily basis. Electrical wires and telephone cords should not be stretched across aisles or walkways. What is the condition of the insured’s flooring? Floors should be swept, mopped, or vacuumed daily. Worn, torn, or loose floor coverings should be repaired or replaced promptly. Wet or oily spots on the floor could lead to slipping accidents. Have doormats been placed inside all public entranceways? Wet spots should be cleaned up immediately, and ―Caution —Wet Floor‖ signs should be displayed over affected areas. If the insured maintains a showroom where merchandise is displayed, there should be adequate aisle space between display racks and fixtures. Some outfits will contract out their housekeeping service; if so, determine the reputation and loss history of the insured’s housekeeping service.

If any visitors (e.g., tow truck drivers from outside services, EPA inspectors, personnel who are servicing the insured’s equipment, etc.) are ever allowed to enter the auto repair area, are they accompanied by an experienced employee? If visitors do wander into these areas, they will be e xposed to the same types of hazards described in the Workers’ Compensation section of this article, such as burns from welding or eye irritation from sanding operations. Most shops do not allow customers into their office areas either. Have

―Authorized Personnel Only‖ or ―Employees Only‖ signs been posted at entrances to all restricted areas? Most repairs performed in body shops will take longer than a single day, usually a few days to as long as two weeks if special parts need to be ordered. Thus, customers typically do not wait in the reception area for their vehicles, but will usually drop them off and pick them up after the work has been completed. However, there will often be chairs, a table, and possibly a coffee maker located in the shop’s customer reception area. If the insured does have a coffee maker in its reception area, is it posted with a sign asking customers not to operate it (other than to pour themselves a cup)? Is it properly grounded and NRTL-listed? Furniture should be in good condition and free of sharp or pointed edges. Determine who is responsible for inspecting and repairing the insured’s furniture. What are their reputation and qualifications?

Some insureds contract out a service to replenish soiled uniforms and rags with fresh ones on a regularly scheduled basis. Delivery personnel from these services should not be permitted to enter the shop area. Does the shop have clearly marked bins located outside its repair bays for holding soiled uniforms and/or rags that are awaiting pickup, as well as a separate bin(s) where fresh ones are dropped off? Delivery personnel from parts and paint suppliers/manufacturers should be restricted to areas that are specifically designated for receiving such shipments. What is the insured’s practice?

Most insureds will receive vehicles in their repair areas that have been towed there by an outside towing service company. Drivers who are not employees of the insured may occasionally have to enter the repair area in order to unload a vehicle there. If the vehicle in need of repair is inoperable at the time of delivery, the driver should back the truck into the repair area, unload the damaged vehicle, and leave as soon as this task has been accomplished. It is not uncommon for d amaged vehicles to be delivered to the insured’s shop during off hours; ideally, a well-lit, outdoor parking area should be designated where they can be left until the shop reopens. Are signs clearly posted indicating where tilt-bed and tow truck drivers should unload any damaged vehicles during off hours?

Insureds that operate a gasoline station on site will face additional exposures. How frequently are gas pumps checked to ensure that they are functioning properly? ―Out of Order‖ signs should be pl aced on any malfunctioning pumps until they can be serviced. At self-service gas pumps, are fueling instructions given in precise steps and explained in clear, understandable language? Some insureds will have racks of automotive products displayed near the gas pumps; if so, they should be situated in such a way that customers are unlikely to trip over them while fueling their vehicles.

Self-service customers could sustain burns if liquid gasoline or gas fumes were to ignite as a result of contact wit h a lit cigarette or engine sparks. Are ―No Smoking‖ signs prominently displayed in all fuel dispensing areas? Signs should also be posted warning motorists to turn off their engine before fueling their vehicle and not to overfill or ―top off‖ their gas tanks. Does the insured have all of these warning signs displayed at each of its gas pumps?

A chemical called benzene is a byproduct of petroleum and is a minor component of gasoline and diesel fuel. Inhalation of benzene fumes can cause a variety of symptoms, such as nausea, dizziness, drowsiness, headache, and eye irritation. Most gas pump nozzles are equipped with rubber collars to minimize escaping benzene fumes as fuel is being pumped. However, some visitors may be particularly sensitive to benzene fumes and could experience symptoms even if every effort is made to reduce their exposure. Are all of the insured’s pump nozzles equipped with rubber collars? Refer to the General Liability section of the Gasoline Stations — Full-Service and Self-Service classification for information on additional exposures and loss control measures for insureds that maintain gasoline retailing operations on site.

What is the condition of the outdoor premises? Sidewalks and parking lots should be in good condit ion and well lit at night, particularly in areas designated for off-hours unloading of damaged vehicles. Have arrangements been made for the prompt removal of ice and snow?

Product Liability and Completed Operations

While a sloppy paint job or paint that starts to peel, chip, or flake may be an annoyance to customers since it will most likely have to be redone, such problems would not impair a vehicle’s performance in any way. The greatest exposure in this line will be faulty workmanship in terms of frames that have not been properly straightened or wheels that have not been correctly aligned. Welds that were not properly done may begin to come apart years later. In addition, exterior panels may not fit the vehicle properly, particularly if aftermarket parts are used. Any of these situations could cause the vehicle’s drivability

and/or structural integrity to be compromised. Overall, the Product Liability and Completed Operations exposure for body shops will be substantial, and it will be increased for those insureds that re-install airbags, replace auto glass, or perform major mechanical repairs.

Where does the insured obtain the necessary parts for its collision repair jobs? Most parts are ordered on an as-needed basis and may be obtained from a variety of suppliers, including parts manufacturers, auto dealerships, auto supply/parts retailers, and salvage operations (i.e., junkyards). Some parts may be new while others may be rebuilt by the manufacturers (e.g., starters, alternators, etc.). Auto parts fall into two basic categories: original equipment manufacturer (OEM) and aftermarket. OEM parts are produced by the various auto makers and meet the exact specifications of the vehicle for which they have been designed, so there is never any question as to whether or not they will ―fit‖ the vehicle. A lthough they are generally lower priced than OEM parts and are therefore favored by some shops as a cost-saving measure,

aftermarket parts are often produced by companies other than the auto makers themselves and are usually designed for use with several different makes or models of vehicles.

From the perspective of body shop technicians, aftermarket parts often compare unfavorably to OEM parts since they can result in increased labor time due to the extra effort that may be required to make them fit a particular vehicle. According to the Automotive Service Association (ASA), a 1998 body shop survey found that aftermarket parts had to be returned 18.5% of the time due to improp er fit. While 73% of shop owners reported using at least some aftermarket parts, they were reportedly used in less than a quarter of

all vehicles repaired. Additionally, when an aftermarket part cannot be made to fit a vehicle at all, the extra time needed to return it and reorder a different part can lead to costly delays and further inconvenience for the vehicle owner. What is the reputation of the parts suppliers that the insured deal s with most often? The use of parts obtained from salvage operations should be discouraged except when all other avenues of supply have been exhausted. (For some older model vehicles, a salvage operation may be the shop’s only available resource for certain parts.) Do the parts makers and/or retailers that the shop deals with offer any type of warranties or guarantees on their products, and if so, are these issued to the shop or vehicle owner in writing? Using OEM parts whenever possible and designating an experienced technician to inspect all parts upon delivery a re both positive underwriting signs. What is the insured’s practice?

One of the first things that is done to a vehicle in an auto body shop is to put the vehicle up on a frame straightening rack to determine whether or not there has been any damage to the frame and if any straightening will be required. Failure to properly straighten the vehicle’s frame could compromise its structural integrity as well as adversely affect its handling. How much experience do the insured’s technicians have at using the frame straightening rack and any corresponding computer software?

Welds that have been improperly done may begin to split apart years after a job was completed. Determine the level of experience of the insured’s welding technicians. Does the insured offer any guarantees specifically on its welding work? If so, what is the length of time for such guarantees? In some instances, adhesives (e.g., epoxies, acrylics, and urethanes) that are intended specifically for use in auto body repair are used to bond panels together in lieu of welding. If the insured uses such adhesives, determine the reputation of the manufacturers and whether or not they offer any warranties on how long such bonds will hold.

An additional problem that can result from welding is the accidental erasing of a vehicle’s factory-installed, computerized programming. A ll automotive welding equipment operates on a certain frequency (although TIG welding guns operate on a higher frequency than MIG welding guns), and consequently prod uce a magnetic field that can greatly interfere with a vehicle’s computerized systems. For this reason, many auto makers specifically advise against performing certain types of welding on their vehicles. In general, if

MIG welding must be performed on a vehicle, technicians should remove any computerized systems that are situated within a two-foot radius of such operations prior to doing the work. Since this exposure will be increased with TIG welding equipment, a vehicle’s computerized systems shoul d always be removed before any TIG welding is done on the vehicle. Does the insured follow all manufacturer’s recommendations regarding the removal of computerized systems prior to welding?

If exterior paint has not been properly applied and dried, it could bubble, crack, or peel over time, particularly under extreme and/or prolonged hot weather conditions. Are paint manufacturers’ specifications regarding the application and drying of their products strictly adhered to by the insured’s paint technician(s)? Many auto paint manufacturers offer lifetime warranties on their products. Does the insured deal only with reputable paint manufacturers and suppliers? What warranties, if any, do these companies offer on their products? Some insureds may have contractual arrangements with a certain paint manufacturer that they will only use their brand of paints. Such contracts should be examined to determine what degree of liability is assumed by the insured if a problem develops with a paint job later on. W ho is responsible for the final inspection of vehicles before they are returned to the customer? What are that individual’s qualifications and experience?

While some shops may perform minor or major mechanical repairs, glass or upholstery replacement, stereo installation, and/or airbag replacement, others may subcontract such jobs to qualified specialists or to an auto dealership that is familiar with the particular model and make of the vehicle being repaired. If these types of jobs are performed by the insured, does it offer its customers any guarantees? If such work is subcontracted out, what degree of liability is assumed by the insured for jobs that may go awry or cause problems later on?

What are the age, type, and condition of the insured’s equipment? Is all repair and painting equipment

modern in design and well maintained? Some insureds may choose to purchase a service contract when buying their equipment. What is the insured’s practice? Determine the qualifications and experience of th e individual who is responsible for maintaining the insured’s equipment, including paint booths and drying chambers. Adequate lighting in shop areas is also critical since poor lighting could affect workers’ ability to perform certain tasks properly. The presence of skylights and/or bright, fluorescent overhead lighting in repair areas is a positive underwriting sign.

What are the training and experience levels of the insured’s auto body repair technicians? An average auto body repair shop employs eight automotive technicians. Typically, at least half of them will be certified by the National Institute of Automotive Service Excellence (A SE) in collision repair and refinishing or a related category, such as mechanical repair. Most technicians receive their training through programs offered at vocational-technical (vo- tech) schools, two-year colleges, or through in-house or manufacturer-sponsored training seminars (e.g., those held by paint manufacturers or auto makers). Although the Inter-Industry Conference on Auto Collision Repair (I-CAR) also sponsors training seminars in collision repair, at the present time, I-CAR offers no formal certification in this field. Are interns and new employees closely supervised? Less experienced workers should be paired with a more experienced employee until they have demonstrated an acceptable level of competence in their assigned duties. For some insureds, workers may be expected to act as ―jacks of all trades,‖ performing various aspects of collision repai rs from start to finish. By contrast, other shops are set up so that the various technicians’ duties are highly specialized, with each worker focusing on a single step (e.g., disassembly, paint preparation, painting, detailing, etc.) in this often comp lex process. What is the insured’s practice?

Does the insured have sufficient personnel to handle its workload? On average, insureds will handle from 20 – 30 jobs per week. Presently, there is a serious shortage of qualified auto body technicians nation wide. Consequently, some insureds may require their employees to work overtime in order to keep up with the workload, particularly during peak seasons. If this is the case, errors could occur due to worker fatigue. Are workers ever required or expected to work overtime?

How long has the insured been in business, and what is its reputation? According to the ASA, the average auto body repair shop has been in business for 24 years. How are customer complaints typically handled? Most insureds will offer to correct any problems they may have inadvertently caused while working on a vehicle. Does the insured offer any guarantees or warranties on its work for a specific number of days, months, or miles? If so, what warranties does the insured provide? Det ermine the shop’s history and reputation for honoring its warranties. Most body shops are privately owned, although in recent years, consolidation has been growing in the collision repair industry as many shops are becoming affiliates or independent franchises of regional or national chains. Insureds that are part of a franchise or chain may provide warranties that are meant to be honored at any other affiliated location. For insureds where this situation applies, are warranties that have been issued by an alternate chain or franchise location consistently honored? Some body shops maintain extensive records of all parts ordered for a vehicle, all work performed and by whom (e.g., technician’s or subcontractor’s name), and all conversations with the vehicle’s owner and/or insurance representative. Such detailed files can be used to defend claims that repairs were not completed in a satisfactory manner. How detailed are the insured’s customer records, and for how long are they kept on file?

Shops that also sell petroleum products, such as gasoline and diesel fuel, could face claims resulting from the sale of ―watered down‖ products. Some vehicle manufacturers may recommend that certain models only take a certain grade (i.e., octane level) of gas oline for optimum performance. Claims could arise if customers believe that they were sold ―watered down‖ gasoline or a lower grade of gasoline than they actually paid for since engine damage could possibly result. Some states, such as Texas, have manda tory octane testing programs in place for all retailers of gasoline products to ensure that consumers are receiving the specific grade of gas for which they have paid. (More states are expected to enact similar legislation in the near future.) Does the insured comply with all mandatory state or municipal octane testing programs? For more information, refer to the Product Liability and Completed Operations section of the Gasoline Stations — Full-Service and Self-Service classification.

If the insured sells used vehicles, how thoroughly are these vehicles checked over before they are put up for sale? Used vehicles should pass all required state inspections before being sold. It is a positive underwriting sign if the shop’s own safety and mechanical inspections for used vehicles are more stringent than those mandated by the state. If vehicles are found to have any mechanical problems that could impair their safe operation or performance, all necessary repairs should be made to these vehicles before they are sold to customers. Does the insured offer warranties on any of the used vehicles that it sells? Determine

the typical time and/or mileage limits on any warranties offered. It should be noted that ―lemon laws,‖ which are in effect in all 50 states, apply only to the sale of new vehicles, not used ones. The Product Liability and Completed Operations section of the Automobile Dealers — New and Used — Retail classification can provide additional information on this exposure.

Does the insured sell automotive accessories (e.g., floor mats, air fresheners, wiper blades) and/or additives (e.g., windshield washer fluid, motor oil, gas additives, etc.)? If so, determine the reputation and loss history of the shop’s suppliers. It is preferable if t he insured sells mostly name brand products whose manufacturers offer quality guarantees on their products. Consult the Product Liability and Completed Operations section of the Automobile Accessories Stores for more information.

Garage Keepers' Legal Liability

Garage Keepers' Legal Liability is a unique type of coverage intended for businesses that perform repairs or services on customer-owned vehicles and/or that offer towing services. This line provides protection in the event of claims filed for damages that occur to customer-owned vehicles and their contents while those vehicles are in the care, custody, and control of the insured. There will be a substantial Garage Keepers’ Legal Liability exposure for automobile body repair shops tha t will be increased for those that offer towing services. Insureds that frequently perform work on more expensive types of cars (e.g., sports cars, race cars, luxury vehicles, and antique or ―classic‖ cars) or specialty/customized vehicles (e.g., buses, police cars, fleet trucks/vans, construction vehicles, etc.) will also face a higher risk since the total value

of vehicles on their premises at any given time is likely to be much greater than the value of a comparable number of regular passenger vehicles.

It is worth noting that certain tasks are often subcontracted out to qualified specialists (or auto dealerships) as part of the overall repair process. Such specialized procedures may include (but are not limited to) the repair or replacement of damaged glass, airbags, stereos, upholstery, and/or the computerized elements of a vehicle’s control console. If the insured typically subcontracts out certain specialized tasks, examine all contracts with these outfits, and determine the degree of liability assumed by the insured. Have hold-harmless agreements been signed?

There are three types of coverage from which the insured may choose: Legal Liability, Direct Excess, and Primary. Legal Liability is this line’s most limited form of coverage. It protects the vehicle against any damages that the shop could be held liable for, such as exterior dents or scratches that were the result of employee negligence. If the insured chooses to have this type of coverage, then customers whose vehicles are dropped off for repair should be required to sign a standard automotive work order form authorizing the insured to perform only the work specified and absolving it from any loss or damage to the vehicle (or its contents) that may result from fire, theft, o r other causes beyond the shop owner’s control.

The second type, Direct Excess coverage, provides much the same protection as Legal Liability. However, it will also pay for any damage to the vehicle that its owner’s coverage will not pay for (i.e., any thing in

―excess‖ of what the vehicle owner’s insurance pays) on a claim for damage that was determined to be the insured’s fault.

The third, and most comprehensive, type of Garage Keepers’ Legal Liability is called Primary coverage. This pays for any damages incurred to a vehicle while it is in the insured’s care, custody, and control, even those resulting from an act of God. In preparing this line of coverage, the underwriter should consider whether the repair shop operates in an area that is prone to floods, tornadoes, hurricanes, and/or hailstorms where vehicles that are left on the premises for more than a day could be affected.

Loss control measures for this exposure would include making certain that customers do not leave anything of value inside vehicles while they are being repaired. The shop may wish to post signs stating that it is not responsible for articles left inside customers’ vehicles. Also, keys to customer-owned vehicles should never be left inside cars during off-hours. Rather, whenever customer- owned vehicles must remain on the insured’s premises overnight, it is recommended that the keys be kept on a keyboard or in a lockbox and stored in a secure location, such as a safe or office. Have all personnel been trained in proper key control methods? Parking areas for customer-owned vehicles should be well lit at night and preferably fenced in. What is the insured’s setup?

Environmental Impairment Liability

Automotive paints can contain hazardous components, such as chromium, polyisocyanates, and lead, that

can cause nervous disorders, skin or eye irritations, and/or such respiratory ailments as asthma. Lead-based paints are typically used for larger commercial vehicles (e.g., buses or trucks) since they are cheap er and therefore more economical for use on vehicles with a greater surface area to cover. The paint booths in an auto body shop have an extensive ventilation system that involves four separate filters, which are classified as hazardous waste after use. Unlike auto repair shops, body shops will have little environmental exposure from automotive fluid loss since most body shops contract out mechanical repairs. Also, vehicles that have been involved in a collision are likely to have leaked fluids at the accident site, so the affected parts will have been fully drained by the time the vehicle reaches the body shop. Overall, the Environmental Impairment Liability for automobile body repair shops will be moderate. Insureds that store gasoline on site will face an increased exposure.

Proper storage and disposal of outdated primers (i.e., a basecoat that is applied to vehicle exteriors and allowed to dry before painting is done) and paints is essential. Most paints and primers will have a shelf-

life of one year. Depending on their volume of business, most auto body shops will store a two- weeks’ supply of paints on site. Paints, thinners, and primers should be stored in containers that are labeled with the contents of the container, closed with lids tight when not in use, and situated away from floor drains. Product data sheets from the manufacturer should contain the volatile organic compound levels (VOCs) of the paints, thinners, primers, or topcoats; a VOC content of less than 5 lbs. per gallon is considered to be

―low‖ and is preferable to those that are ―high‖ (i.e., 5 lbs. per gallon or more). Does the insured use only low VOC products?

How are leftover or outdated paints disposed of? Paint technicians should be instructed to mix only the amount of paint that is required to complete a particular job, conserving the paint as much as they can. When a paint can is empty and needs to be replenished with a fresh one, there is likely to be some residual paint still left inside the can. Low VOC paint cans may be rinsed with a combination of water and thinner, which can then be passed through the insured’s paint thinner recycling machine. The resulting water can then be flushed out into the regular municipal wastewater system while the cans themselves can be disposed of with other trash in landfills. High VOC paints should only be handled by a hazardous waste hauler or an appropriate recycling contractor. Do municipal or state laws require the recycling of metal cans in the insured’s area? If so, low VOC paint, primer, or thinner cans must typically be rinsed, dried, and preferably crushed before being recycled. What is the insured’s practice?

The ventilation system of a paint booth involves an intake portal and an exhaust portal, each o f which is equipped with two separate filters. The pre- filter, which is found at both ends, traps larger particles. The main filter and exhaust filter are the secondary filters that trap smaller airborne particulate. All of these filters may be in use for up to 500 hours before being replaced. At this time, they are classified as hazardous waste and must be handled and disposed of according to Environmental Protection Agency (EPA) regulations. Most shops contract out the disposal of their paint booth filters to qualified hazardous waste haulers. It is a positive underwriting sign if the waste hauler’s workers perform the actual replacement of these filters, rather than the insured’s employees. Examine all contracts with the insured’s hazardous waste hauler, and determine the degree of liability assumed by the insured. What are the qualifications and reputation of the insured’s hazardous waste hauler? Are all EPA requirements met in the handling and disposal of the paint booth filters?

Before painting a vehicle, auto body shops will use masking tape and masking paper to cover up areas of a vehicle that are not going to be painted, such as windshields and bumpers. These materials will stay on the vehicle after the topcoat has been applied and al l through the ―baking‖ procedure. After they have undergone the drying process and the paint has hardened onto the paper or tape, these materials are considered to be nonhazardous waste and can be disposed of with the insured’s regular trash. Does the insured ever remove or dispose of masking tape or paper that contains wet paint?

In-house recycling equipment is commercially available; such equipment is designed specifically to recycle and solidify paint thinner, turning it into hard, rubber-like balls that are ready for pickup. Is solidified paint thinner stored in a separate, EPA-approved, tightly-sealed container while awaiting pickup? Badly damaged tires that are beyond repair must also be properly disposed of. Most insureds will contract out the disposal of their used tires to independent contractors, who in turn transport them to an appropriate recycling center. It is important to note that if it is found that a recycling contractor has not been following proper procedures and pollution claims result, insureds could still be forced to pay part of the environmental clean up costs, regardless of whether they had knowledge of the contractor’s illegal activities. Examine all contracts signed between the insured and its recycling contractors. What is the degree of liability assumed by the insured? Determine the reputation and loss history of all contractors that

the insured uses. It is recommended that certificates of insurance are collected from these contractors and that the shop ask to be named as an additional insured.

Nearly all auto body repair shops will have hydraulic lifts that are used to raise and lower vehicles so repairs can be made to them. A frame rack also comes equipped with its own hydraulic lift. These lifts are powered by pistons and pumps, which raise and lower the platforms according to the amount of hydraulic fluid that is pumped into or out of them. Aboveground lifts are powered by a single pump and are individually equipped with a s mall tank of hydraulic fluid (generally about 10-11 quarts) that feeds directly into the pump. Underground hydraulic lifts, on the other hand, will typically have a larger tank of fluid that can hold as many as 5-10 gallons and that is connected by a series of underground pipes to one or more lifts’ pumping units. If the shop’s hydraulic tanks and pipes are situated underground, deterioration (e.g., rust) could occur that might cause leakage or seepage of hydraulic fluid into the ground, creating an environmental hazard. However, with aboveground hydraulic lifts, leaks in equipment can be more easily detected, cleaned up, and repaired, thereby reducing the possibility that the fluid could seep out and contaminate surrounding soil. Are the insured’s hydraulic fluid tanks above- or underground? How often are the insured’s hydraulic fluid tanks examined for possible leaks? Determine who is responsible for inspecting and maintaining the hydraulic lifts, fluid storage tanks, and all their component parts.

Some insureds may use a parts washer to clean mechanical grease and grime off of parts that have been purchased from a salvage operation (i.e., junkyard) prior to installing them in customers’ vehicles. Wastes generated from these machines are generally not considered to be hazardous, but should still be handled with care. According to the EPA, insureds should consider using a two- stage cleaning system. The installation of a solvent distillation unit, which heats the cleaning mixture to vaporize, condense, and recycle the solvent, is also recommended. If the insured ever handles jobs where refrigerants are recycled or refilled in vehicles, it must hold the required certification to perform this type of work. Is disposal of used refrigerants contracted out to a qualified recycler, or does the shop have an in-house unit that enables it to reuse refrigerants in customers’ vehicles? The Environmental Impairment Liability section of the Automobile Repair Shops classification can offer additional loss control measures for bo th of these exposures.

Soiled uniforms and rags are typically picked up, laundered, and replenished on a regularly scheduled basis by contractors who specialize in such operations. Such items should be stored in self-closing, flame-resistant, metal containers while awaiting pickup. Does the insured contract out the care of used uniforms and rags to a reputable laundering service, and if so, where and how are soiled items stored until pickup? Some shops will also have a washing machine and dryer on site for laundering towels that are used to dry off vehicles between the washing and painting stages. What is the insured’s practice?

Insureds that store and dispense gasoline or diesel fuel on site will face an increased exposure due to the recent discovery that serious environmental damage has been and is continuing to be caused by methyl tertiary-butyl ether (MTBE), an emissions-reducing additive that has recently been discovered to have carcinogenic properties. MTBE has proven to be capable of eating through tank and pipe seals on both old and new underground gasoline storage tanks, thus seeping into nearby soil and water supplies and causing contamination problems. How often does the insured conduct testing of soil and water from surrounding areas to check for possible contamination? For more information, refer to the Environmental Impairment Liability section of the Gasoline Stations — Full- Service and Self-Service classification.

If the insured does store gasoline on site, has a tank monitoring system (TMS) been installed? In addition to automatically monitoring the fuel levels in each of the insured’s underground storage tanks, the TMS continually runs air pressure tests on all tanks and connecting pipe systems to check for leaks and weak connecting joints. Some states have already enacted laws requiring all gasoline retailers to have a TMS installed, while others are expected to follow suit in the near future. Is the insured in compliance with all applicable laws regarding the use of TMSs?

Workers' Compensation

Auto body repair shops will have a significant Workers’ Compensation exposure. Technicians face the potential for burns and shocks from the use of malfunctioning equipment. Long term injuries, such as respiratory problems and skin irritation, may result from contact with automotive paints, primers, thinners, topcoats, and adhesives. Noise exposure could lead to hearing loss, and working in awkward positions could lead to musculoskeletal problems. Tilt- bed and tow truck drivers will face an increased risk of being involved in vehicular accidents. Technicians and tow truck drivers may also come into contact with

bloodborne pathogens when handling vehicles that have been involved in an injury accident and blood is present.

What is the layout of the insured’s premises? Most auto body repair shops are one-story structures that include a reception and customer waiting area, offices, a conference room, one or more storerooms where various auto parts and supplies are kept, an employee lounge (possibly with a small kitchen), restrooms, and a parts receiving area. The insured may store its specialized vehicles in a separate garage or outdoor parking area along with customer-owned vehicles that are awaiting repairs or pickup. The heart of the operation is the shop area where all vehicle repairs are performed. This area is likely to include several hydraulic lifts as well as a frame straightening machine. Also included here, although attached to the facility as independent structural units, are one or more paint booths (where painting operations take place) and one or more drying chambers (where vehicles are ―baked‖ immediately after painting so that the paint and topcoat dry and harden quickly according to the pai nt manufacturers’ specifications). In some cases, the paint booth will be constructed so that it performs a dual function, acting as the drying chamber as well.

The hours of operation for a typical repair shop are from 8:30 a.m. – 5:30 p.m., Monday through Friday, with shortened hours on Saturdays, from 9:00 a.m. – noon. Many shops are closed on Sundays. Most insureds will experience a peak season during the summer months when vacation travel leads to increased traffic in many areas. Insureds in northern climates are also likely to see a rise in business during the winter months due to vehicle damage caused by weather- related accidents.

What are the age, number, and experience levels of the insured’s workers? An average shop maintains a staff of 14, including 8 automotive technicians. Typically, at least four technicians on staff will hold certification from the National Institute of Automotive Service Excellence (ASE) in collision repair and refinishing or a related area, such as mechanical repair. Most technicians receive their training through programs offered at vocational-technical schools, two-year colleges, or through various in-house or manufacturer-sponsored training seminars (e.g., those held by paint manufacturers or auto makers). The Inter-Industry Conference on Auto Collision Repair (I-CA R) also sponsors training seminars in collision repair for which participants are charged a fee and receive a completion certificate. However, no formal certification in this field is offered by I-CAR at the time of this writing. Most shop owners themselves are certified or have received some training in automotive body repair.

What are the workers’ duties? For some insureds, workers may be expected to act as ―jacks of all trades,‖ performing various aspects of collision repairs from start to finish. By contrast, other shops are set up so that the various technicians’ duties are highly specialized, with each worker focusing on a single step (e.g., disassembly, paint preparation, painting, detailing, etc.) in this often complex process. Other shop personnel will usually include a receptionist and one or more case managers who handle accounting and office operations, as well as customer relations and insurance claims processing. Housekeeping duties are often contracted out to a cleaning service. If secondary operations (e.g., towing services, car rental agencies, gasoline stations, stereo or used car sales, etc.) are part of the insured’s setup, then additional employees with appropriate skills will be hired to fill the necessary positions (e.g., tow truck drivers, car rental agents, gas pump attendants, salespeople, etc.).

It is important to note that student interns may be covered under Workers’ Compensation or General Liability, depending on the applicable laws in the insured’s state, as well as whatever agreements have been made with the cooperating educational institution. All student interns and new employees should undergo basic safety instruction as part of their training, and technicians should be thoroughly instructed in the use of any unfamiliar equipment before using it. Are interns and new employees closely supervised? Less experienced workers should be paired with a more experienced employee until they have

demons trated an acceptable level of competence in their assigned duties. Refer to the Workers’ Compensation section of the Vocational-Technical Schools — Public and Private classification for more information.

Claims may result from injuries caused by slips, trips, or falls. Good housekeeping practices can help to reduce this exposure. All areas, particularly repair bays and paint booths, should be kept free of debris and clutter. Trash should be removed from the premises daily. Electrical wires and telepho ne cords should not be stretched across aisles or walkways; similarly, cords to all repair equipment in service bays should be neatly coiled and kept clear of walkways when not in use. What is the condition of the insured’s flooring? Floors should be swept or vacuumed every day, and worn or loose coverings should be replaced as necessary. Many insureds will have concrete flooring in their repair bays; cracks and holes should be repaired promptly by a qualified professional. An epoxy coating over the concrete flooring can contribute

to quick and easy cleanup of greasy spills since oil cannot penetrate this type of coating. Are workers instructed to clean up wet or oily spills immediately, using a grease-dissolving agent if necessary? If the repair shop contracts out its housekeeping and/or building maintenance services, determine the reputation and experience of the contractor used. It is a positive underwriting sign if the air hoses that are connected to painting and drying guns are strung in such a way that they hang down from the ceiling instead of being dragged across the floor; such a setup can help minimize the possibility of workers tripping over them.

All shelves in storage areas should be solidly constructed with items (e.g., paints, auto parts, tires, etc.) neatly arranged and categorized for ease of location. A well-organized and maintained stockroom can also help prevent workers from being crushed by collapsing shelves or struck with toppling objects. Who is responsible for overs eeing the insured’s storage areas, and what are that person’s qualifications and experience?

Because they work with a great deal of electrically powered equipment, technicians in particular may be subject to electrical shocks. Is all electrical equipment NRTL-listed and properly grounded? Cords should be checked frequently for cracks or fraying, and a routine schedule of inspections and maintenance by a qualified professional should be in place. Is the insured in compliance with OSHA standards 1910.212, General Requirements for All Machines and 1910.242, Hand and Portable Powered Tools and Equipment — General?

Many vehicles that have been damaged in a collision will require welding as part of their body repair. Technicians who perform welding operations on vehicles could sustain burns. The use of appropriate personal protective gear (e.g., masks, gauntlet-style gloves, fire-retardant leather aprons) is essential whenever welding is being performed. How strictly does management enforce adherence to safe welding practices and the wearing of personal protective gear? Workers who have a pacemaker should be advised to keep away from all welding equipment while it is in operation since the frequency at which it operates and the resultant magnetic field may interfere with normal pacemaker functions. Is the insured in compliance with OSHA standard 1910.252, Welding, Cutting and Brazing? For more information on this exposure, refer to the Workers’ Compensation section of the Welding, Cutting and Braz ing classification. Burns could also be sustained from coming into contact with the heating devices that are used to dry vehicles after painting. In most cases, these heating units are built into the walls of the drying chamber or paint booth and are controlled through a panel that is located outside the chamber itself. What is the insured’s setup? Are workers prohibited from entering the drying chamber while the heating units are in use?

Sanding, welding, or cutting operations can generate dust and metal particulate, which can irritate workers’ eyes. Protective goggles should always be worn when workers are performing such tasks. Some sanding guns are equipped with a special nozzle that sucks away dust particulate while it sands; the use of thes e guns can help reduce this exposure since much of the harmful particulate is removed from the air as it is generated. What is the insured’s practice?

Although a great deal of repair work on vehicles is performed while vehicles are situated on raised hydraulic lift platforms, occasionally hand-operated jacks may be used to raise or lower one end of a damaged vehicle (e.g., to change a damaged tire). If mechanics ever use slide boards to move under a vehicle that has been elevated with a jack, they could be crushed if the vehicle were to slip off of it. Are hand-operated jacks ever used to raise vehicles? Whenever possible, workers should use hydraulic lifts for raising and repairing vehicles since they are equipped with safety locks that are automatically activated when the lift is raised to a certain height, such as three or four feet. The safety lock prevents the lift from dropping back down to the ground, even if its operating mechanis ms or pumps should fail. Determine how frequently the insu red’s jacks and hydraulic lifts are inspected. Does the insured comply with OSHA standard 1926.305, Jacks — Lever and Ratchet, Screw, and Hydraulic?

Many vehicles that have been involved in a collision will have broken, chipped, or cracked pieces of gla ss as a result. Workers (including tow truck drivers) who must handle or remove damaged glass from the vehicle prior to making repairs could sustain cuts or lacerations. Are workers required to wear rubberized gloves of sufficient thickness when handling broken auto glass? All tow trucks should be equipped with such gloves so drivers can use them when necessary. Is the insured in compliance with OSHA standard 1910.138, Hand Protection?

Paint and paint ―prep‖ technicians will face exposure to volatile organic compounds (VOCs) that can be found in automotive paints, thinners, primers, and topcoats. Unprotected exposure to any of these substances can lead to workers experiencing skin irritations, eye irritation, respiratory problems, or even lead poisoning (where lead-based paints are used). Have material safety data sheets (MSDSs) been posted

in plain view of all workers? The insured should comply with OSHA standard 1910.1200, Hazard Communication. A VOC content of less than 5 lbs. per gallon is c onsidered to be ―low‖ and is preferable

to those that are ―high‖ (i.e., 5 lbs. per gallon or more). Does the insured use only low VOC products? High volume, low pressure (HVLP) spray painting guns are recommended over conventional gravity or siphon-feed spray guns since they can cut the amount of overspray (i.e., the amount of paint particulate that remains in the air after spraying) concentrations in half. Paint booths should be equipped with downdraft ventilation (instead of cross-draft or semi-downdraft) because it helps promote lower concentrations of overspray. Are shop areas equipped with emergency hand- and eye-wash stations? The insured should comply with OSHA standards 1910.133, Eye and Face Protection and 1910.94, Ventilation. While the use of HVLP spray painting guns and downdraft ventilation can both help to reduce the concentration of paint overspray, nothing can eliminate it completely. Therefore, the use of personal protective equipment is essential for paint technicians. The National Institute for Occupational Safety and Health (NIOSH) has exclusive authority for testing and certification of respirators that are used in the automotive industry. As per federal recommendations, body shops are advised to have workers use the appropriate, NIOSH-approved ―paint spray‖ respirators and filters when engaged in auto painting operations. Whether a technician chooses to use a half-facepiece or full-facepiece will depend on the level of protection needed for a particular job. A lso, the shop should have a formal, written respirator program in place that ensures proper maintenance and care of this equipment. Do respirator masks adequately fit the technicians who are using them, and are they equipped with the correct type of filters? Is t he insured in compliance with OSHA standard 1910.134, Respiratory Protection?

Lead-based paints were commonly used on automobiles up until the 1980s, and they are still used today on larger vehicles (e.g., trucks, buses, etc.) since a larger surface area is being covered and they tend to be much less costly. Prolonged exposure to lead can cause lead poisoning, which can result in potentially fatal liver damage among other serious conditions. Workers who restore older model vehicles (e.g.,

―classic cars‖) or who are involved in painting larger vehicles are likely to face this exposure. Does the insured ever restore classic cars or paint larger vehicles? Workers for shops that specialize in such operations may face an increased risk of lead exposure. Are workers required to wear the appropriate personal protective gear when working with lead-based paints? The insured should be in strict compliance with OSHA standard 1910.1025, Lead.

Some automotive repair equipment (e.g., sanders) can be quite loud; prolonged exposure could lead to hearing loss. Workers who are exposed to noise levels at or above 85 dB must be given annual audiometric examinations and NIOSH-approved hearing protection devices upon request. Workers who are exposed to noise levels above 90 dB must be issued and required to wear hearing protection devices. Does the insured conduct annual audiometric examinations for all technicians who are exposed to loud noises? Such examinations may be used to establish a baseline against which later tests can be compared. Is work in noisy areas limited to brief periods of time? The insured should comply with OSHA standard 1910.95, Occupational Noise Exposure.

Tilt-bed and tow truck drivers may sustain injuries resulting from automobile accidents. If the insured sells used vehicles, salespersons will also face this exposure since they will accompany customers on test-drives. Technicians who are responsible for making the final inspection of repaired vehicles may also be at risk if they typically take vehicles for a test-drive before returning them to their owners. Safety belts should be worn by all vehicle occupants, and mirrors and seating should be adjusted for the driver’s comfort prior to engaging the vehicle. For both salespeople and technicians, it is a positive underwriting sign if the insured has designated routes for test-drives; drivers are likely to be more familiar with the traffic patterns of those designated routes. Are workers discouraged from using new or unfamiliar routes? Tilt-bed or tow trucks may respond more sluggishly when loaded with a disabled vehicle, and drivers may frequently be called out to transport vehicles during inclement weather (e.g., snow storms). Does the insured respond to all requests for towing, regardless of posted weather advisories? Drivers may also have to drive along the shoulder or median strip of a highway in trying to reach an accident site. All tilt-bed and tow trucks should be equipped with flashing yellow lights as a warning to other motorists. Drivers of tilt-bed or tow trucks could also be struck by passing motorists while attempting to load disabled vehicles. Are road flares placed around affected areas while disabled vehicles are being loaded for transport? Less experienced tow truck drivers should be paired with more experienced ones until they are more familiar with how the vehicle handles.

When preparing a vehicle for painting, the interior upholstery (e.g., bucket seats, back seats, etc.) may have to be taken out since car windows are often removed. While lifting upholstery out of the vehicles,

workers may sometimes have to assume an awkward position, which could contribute to back injuries. Have all employees been instructed in proper lifting techniques? It is essential that workers are trained to lift an object and then turn with it, since lifting and turning in the same motion can be especially hazardous. Are workers instructed to roll tires whenever possible rather than carry them?

Does the insured ever tow or perform repair work on vehicles that have been involved in injury accidents? If so, there is the possibility that dried blood may be present on the vehicle’s upholstery or dashboard. While the HIV virus does not survive long in dried blood, the virus for the potentially fatal liver disease, Hepatitis-B, can live in such a state for quite some time. Proper protection of workers who are in contact with such vehicles is an essential loss control. Tilt-bed or tow truck drivers should be instructed to wear rubber gloves when handling vehicles at accident sites where the potential for direct contact with blood is possible. Are technicians required to wear rubber gloves and goggles when working on vehicles where blood is present? Special cleaners that specifically kill the hepatitis virus should be used to remove the blood, and workers should scrub with an anti-bacterial soap after working on such vehicles. The insured may wish to consider enrolling its technicians in Red Cross training courses that s pecifically address the issue of exposure to potential bloodborne pathogens in the workplace. Does the insured comply with OSHA standard 1910.1030, Bloodborne Pathogens?

Workers may be subject to repetitive motion injuries (RMIs) and work-related musculoskeletal disorders (WMSDs) resulting from extended use of equipment that gives off strong vibrations, or from performing work while in an awkward position. Technicians frequently have to work on vehicles that are positioned above their heads, or they may have to reach inside an engine and perform a task while maintaining an awkward position. Over time, problems such as rotator cuff damage to the shoulders, thoracic outlet syndrome, or other muscle strains that affect the neck and shoulder areas could result from these types of work activities. Vibration has been associated with bladder dysfunction, as well as other internal physical problems. Does the insured comply with OSHA standard 1926.302, Power-operated Hand Tools?

Office employees (e.g., secretaries, case managers) and gas pump attendants (for insureds that run a gasoline station on site) may experience repetitive motion injuries, such as carpal tunnel syndrome, from extensive use of calculators, computers, or gas pumps. Employers should follow standard ANSI/HFS 100-1988, which provides ergonomic design guidelines for visual displays, keyboards, and workstations. Are office workers encouraged to look away from their computer monitors and refocus on distant objects from time to time? Employees who work on computers a great deal should be encouraged to take a 15- minute break every 3 – 4 hours.

Maintaining a comfortable work environment is essential to ensure worker safety and productivity for this industry. Due to the open design of repair areas and the fact that vehicles are being driven in and out of the facility throughout the day, technicians will be more susceptible to illnesses caused by outdoor temperature extremes. Summertime heat and/or heat generated by the insured’s dryi ng chamber(s) can lead to dehydration, heat exhaustion, or heat stroke. Does the insured provide easy access to fluids for its technicians during warmer weather? Strategically placed water coolers, central air conditioning, and large overhead fans in repair areas are all advisable loss control measures. Temperatures that are below freezing can lead to such problems as frostbite (particularly in the extremities, such as fingers and toes) or hypothermia. Since gloves or mittens may impair technicians’ a bilities to perform certain tasks, the Automotive Service Association (ASA) recommends that shops maintain a temperature of at least 60° F in all service bays during colder weather. Although some insureds may use portable space heaters in repair areas to help keep workers warm, such practices should be strongly discouraged because they are a potential ignition source.

Adequate lighting is also critical; not only will inadequate lighting affect an employee’s ability to perform certain tasks properly, but it can lead to eyestrain. The presence of skylights and/or bright, fluorescent overhead lighting in repair areas is a positive underwriting sign. Office areas should also be well lit, particularly at work stations where computers are frequently us ed.

Does the insured have sufficient personnel to handle its workload? On average, insureds will handle from 20 – 30 jobs per week. Presently, there is a serious shortage of qualified auto body technicians nationwide. Consequently, some insureds may require their employees to work overtime in order to keep up with the workload, particularly during peak seasons. If this is the case, accidents could occur due to worker fatigue. Are workers ever required or expected to work overtime? Are limits set as to the amount of overtime work employees should be allowed to perform?

For insureds that also maintain a gas station on the premises, workers who dispense fuel will be subject to various other work hazards including inhalation of benzene fumes and being the victim of a possible

robbery attempt. Are all of the insured’s pump nozzles equipped with rubber collars to help minimize exposure to benzene fumes? The insured may wish to install outdoor floodlights and/or strategically placed surveillance camera s near gas pumping stations. What is the insured’s setup? Have employees been instructed to cooperate with robbers’ demands and discouraged from displaying heroics during robbery attempts? For more detailed information on these exposures, consult the Wo rkers’ Compensation section of the Gas Stations — Full-Service and Self-Service classification.

What is the availability of emergency health care and first aid on site? It is a positive underwriting sign if the insured employs at least one full-time worker who is certified in CPR and first aid. Have any employees undergone basic first aid training? Some states require that at least one employee at an auto body shop must be certified in basic first aid. Check the laws in the insured’s state, and dete rmine if the insured is in compliance with all applicable first aid requirements. Are first aid kits located throughout all repair areas, and are workers aware of their location?

Crime

A minor Crime exposure will exist for automobile body shops. There will not be much cash on hand since most repair jobs are paid for with a credit card, personal check, or electronically (when dealing with insurance companies). Insureds that maintain gasoline retailing operations as part of their setup will fac e an increased exposure due to a larger volume of cash on the premises daily. Mechanics’ tools, which can have a total value up to tens of thousands of dollars, may be another target for thieves. An employee dishonesty exposure may also exist.

Most body shops will not have a great deal of cash on hand since the majority of customers pay for repairs with a personal check or credit card. However, insureds that have a gas station as part of their setup are likely to have a greater amount of cash on hand daily. When insurance companies are responsible for payment of work performed, many of them prefer to handle such transactions through electronic fund transfers (EFTs), which moves the necessary funds from their bank account directly into the body shop’s account. When dealing with personal checks, they should be stamped ―For Deposit Only‖ immediately upon receipt, and all office employees should be trained in proper credit card verification procedures. Checks, charge receipts, and cash should be stored in a tool-, torch-, explosive-resistant, NRTL-listed, time-delay safe until they can be deposited. Are deposits made daily at staggered times to avoid suggesting a routine?

For insureds that sell gasoline, customers could drive off without paying for their fuel. If the insured sells gasoline, are the pumps self-service or full- service? A policy whereby customers must pre-pay for their gasoline purchases can greatly reduce this exposure. What is the insured’s practice? All cashier’s booths or counters for insureds with gasoline stations should be equipped with a hold-up alarm and/or telephone so that police may be contacted quickly in the event of a robbery attempt. Insureds with gas pumps may also wish to install outdoor surveillance cameras as an added loss control measure. For more information, refer to the Crime section of the Gasoline Stations — Full-Service and Self-Service classification.

What types of valuable equipment and materials are on the premises? All body shops will have mecha nics’ tools on the premises, as well as other valuable equipment, such as cameras, which are used to photographically document the ―before‖ and ―after‖ condition of vehicles for both owners and insurers, and welding guns. Both individually and collectively, these items can be quite valuable and may be a popular target for thieves. How and where are such items stored when not in use? Smaller tools and cameras should be kept in locked storage rooms or cabinets with restricted access. It is a positive underwriting sign if the insured uses sign-out sheets to monitor the use of such items. Most mechanics’ tool sets will be the personal property of the body shop’s technicians and will be covered under Inland Marine by a special policy known as Employee Tools coverage.

Depending on their scope of operations, some insureds may also have various automotive products (e.g., motor oil, fuel additives, etc.) and accessories (e.g., stereos, tires, hubcaps, etc.) for sale. Insureds with such a setup may wish to install closed circuit cameras and/or post signs in showroom areas warning customers of their prosecution policy toward shoplifters. Larger items will be difficult to carry off the premises unnoticed, but thieves may target a shop and break in after hours for items such as stereos and hubcaps that have a high street value. What is the level of security on the premises? Windows should be equipped with tamperproof locks, and all doors should have double-cylinder, deadbolt locks installed. A central-station alarm monitoring system is recommended.

Some insureds may keep a guard dog on the premises during off hours. Are guard dogs kept chained or

风险管理与保险——总结

Risk Management and Insurance Chapter 1 Introduction to Risk 4. Differentiate between a peril（风险事件）and a hazard（风险因素）and give an example of each. (P9) A peril is a specific contingency（意外事件）that may cause loss. Examples of perils include fire, windstorm（暴风）, collision（冲突）, war, etc. A hazard is a condition or situation that makes it more likely that a peril will occur. Examples of hazards include oily rags（油布）, icy roads, a dishonest employee, a careless driver, etc. Hazards include: ?Physical hazards（物质风险因素）, like ice on the sidewalks, smoking, or skydiving; ?Moral hazards（道德风险因素）(most of which are avoidable), like dishonesty (such as burning down the warehouse（仓库）when your company goes bankrupt（破产）to collect insurance money or buying insurance on someone with yourself as beneficiary（受益人）and then killing them); ?Morale hazards（心理/行为风险因素）, like a careless attitude since “insurance will pay for it” . 5. Classify each of the following hazards as physical, morale, or moral. (P9-10) a. A careless driver; b. A person who suffers an exaggerated（夸张的）case of whiplash（脖子扭伤）following an automobile accident; c. A worker who occasionally leaves a dangerous machine unattended to talk with friends; d.An employee who occasionally embezzles（挪用）money; e.Icy road conditions. a: Morale; b: Moral; c: Morale; d: Moral; e: Physical. 6.Define（定义）risk management and identify（识别、确定）the four steps in the risk management process. How does enterprise（企业）risk management differ from the traditional form of risk management?（P13.10） Risk management is the process used to systematically（系统地）manage exposures to pure risk. The four steps in the process are ①identify risks, ②evaluate risks, ③select risk management techniques, and ④implement（执行、实施）and review decisions. Traditionally, risk management has dealt primarily（首要地）with pure risks. Enterprise risk management considers all of an entity’s risks（实体风险）together, both pure and speculative（投机的）. 8. ABC Company owns 10,000 cars and has determined that it is very likely to suffer between 60 and 70 collision losses this year. XYZ Company also owns 10,000 cars and has determined that it is likely to experience 50 to 80 collision losses this year. Compute the degree of risk for each company, assuming that the companies expect to suffer 65 losses each. (P11) Risk ABC=(70－60)/65=15% Risk XYZ=(80－50)/65=46% 11. Company A owns 100 buildings and averages 2 fires per year. Company B owns 1,000 buildings and averages 30 fires a year. Company A never experiences more than 3 fires a year, although in some years there are none. In some years Company B has as many as 36 fires but never has fewer than 24. Who is faced with the greater objective risk? Who has the greater chance of loss? Explain. (P11) Risk A=(3－0)/2=150% Risk B=(36－24)/30=40% A is faced with the greater objective risk; Probability A=2/100=0.02 Probability B=30/1000=0.03 B has the greater chance of loss. Chapter 2 Risk Identification（识别）and Evaluation（评估） 1. List and briefly describe three methods of identifying risks. (P16-18) One method uses loss exposure checklists（遭损风险核对表）that list various specific sources of loss. Another is the financial statement（财务报表分析）method that involves analyzing each item on a firm’s income statement（损益表）and balance sheet（资产负债表）regarding risks that may be present. A third method uses flowcharts（流程图）to map out the physical flow of goods. Flowcharts can be analyzed with respect to（关于，对于）the types of risks that may affect goods at each point.

保险公司风险管理

保险公司风险管理 一、对企业风险管理概念的理解 近年来,许多学者和国际组织都试图对企业全面风险管理作出全面和权威的定义,较具影响力的国际组织先后给出的定义如下: 风险管理是以文化、过程和结构为基础而驱动企业朝着有效的管理潜在的机会和同时是有效的管理潜在的不利因素的方向发展。 ——AS/NZS4360,1999 风险管理是组织策略管理的核心部分,它是组织以条理化的方式来处理活动中风险的过程,其目的是从每项活动及全部活动的组合中获得持续的利益。 ——AIRMIC/ALARM/IRM,2002 企业风险管理是一套由企业董事会与管理层共同设立,与企业战略相结合的管理流程。它的功能是识别那些会影响企业运作的潜在事件和把相关的风险管理到一个企

业可接受的水平,从而帮助企业达至其目标。 ——COSO-ERM,2004 归纳起来,以上定义基本上基于两个角 度出发:一是从限制不利和促进有利的角度,以澳大利亚/新西兰AS/NZS4360和英国AIRMIC/ALARM/IRM为代表;二是从战略目标 和过程的角度,以美国COSO-ERM为代表。目前,美国的企业往往将COSO-ERM2004的定义视为ERM的定义,而欧盟的企业在相当程度 上将AIRMIC/ALARM/IRM2002视为ERM的定义。现在,ISO层面的ERM概念正在讨论 中,ISO-31000预计将在2009年出台。届时,业界将会有统一的ERM概念。 中国保监会在2007年下发的《保险公 司风险管理指引》中,对风险进行了明确的 定义,即“风险是指对实现保险经营目标可 能产生负面影响的不确定性因素。”保监会在《保险公司风险管理指引》中给出的风险管理定义为:“风险管理是指保险公司围绕 经营目标,对保险经营中的风险进行识别、 评估和控制的基本流程以及相关的组织架构、制度和措施。”

风险与保险的关系

风险与保险的关系 风险是人类生存过程中不可避免的现象，我们生活在一个充满风险的世界之中，无论是从空间上讲，还是从时间上讲，风险都是不以人们的意志为转移的，是始终存在的，它是发生不幸事件的可能性，是损失发生的不确定性和可能 性。 人类首先要面对的是各种各样的自然灾害风险，我们可以根据性质的不同，把风险分为自然灾害和意外事故及疾病。 (一)自然灾害：自然灾害是由于自然界变异引起破坏力量所造成的现象，自然灾害一般是指不以人们意志为转移的自然力量所引起的灾害，也可指人力不可抗拒的自然界破坏力量所造成的灾害，自然灾 害一般有以下几种： 1、恶劣气候，通常是指暴风雨，飓风和大浪等自然现象。 2、雷电，主要是指雷击闪电自然现象造成陆上建筑物受损，或 由雷电所直接引起火灾所造成的损失。 3、地震，是指因地壳发生急剧的震动而引起地面断裂和变形的 地质现象，是一种突发性的灾害。 4、火山爆发，直接或归因于火山爆发造成的海上船舶，陆地建 筑物重大财产损失和人员伤亡。 5、海啸，是指由于地震或风暴而引起海水巨大涨落现象，海啸的破坏力很大，尤其是袭击某一拥挤港口或地区时，会使船舶互相碰撞， 船只搁浅甚至沉没。 6、洪水，是指偶然爆发的具有意外灾害性质的大水，一般指山洪暴发，江河泛滥，潮水上岸及倒灌或暴雨积水成灾，往往造成房屋倒 塌，人畜伤亡。

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工程项目风险管理与工 程保险 -CAL-FENGHAI-(2020YEAR-YICAI)_JINGBIAN

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江西省高等教育自学考试 会计专业本科毕业论文 平安保险公司风险管理研究 论文作者： 准考证号： 作者单位： 指导教师： 主考学校： 完成时间：

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风险管理与保险规划 Document number：BGCG-0857-BTDO-0089-2022

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保险公司流动性风险管 理报告 Standardization of sany group #QS8QHH-HHGX8Q8-GNHHJ8-HHMHGN#

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（二）流动性风险管理制度建设与改进情况 参考示例： 公司于201X年X月至X月期间，拟定了《XX保险股份有限公司流动性风险管理办法》和《XX保险股份有限公司流动性风险应急预案》，明确了流动性管理总体目标和管理原则，并制定了流动性风险管理机制。 流动性风险管理的基本目标，是在满足客户支付结算、公司日常经营、偿还债务的前提下，保持合理的流动性水平，科学配置资产负债，最大限度地减少因流动性原因产生的支付风险及突发事件给公司造成经济损失，维护广大客户的利益，确保公司稳健发展。公司根据业务规模、产品结构、风险状况及场环境等因素，在充分考虑其他风险对流动性风险的影响和公司的整体风险偏好的基础上，确定了201X年度流动性风险偏好和容忍度。 （三）当期的重大流动性风险事件描述、成因分析与应对措施（如有） 参考示例： 公司目前处于快速发展时期，新业务保费每年流入较多，即使不考虑存量资产的到期现金流以及通过回购融入现金的能力，也足以支持保险赔付支出，面临的流动性风险较小。在基本情景下的压力情景测试结果显示，公司的净现金流无论现在或未来都为正值，公司可以保证现金的流动性，满足业务量的持续上升。

浅析保险公司内控合规管理工作

浅析保险公司内控合规管理工作 由于保险市场与资本市场、货币市场的密切关系，保险公司所需要面临的巨大风险也不言而喻。这些风险复杂难测，涉及自然灾害、意外事故，且日益受到投资环境、货币政策等风险因素的影响。因此，我们保险公司应切实研究风险方法的措施与途径，积极防范和化解内部及外部风险。内部控制是保险公司防范风险的第一道防线，处于基础性地位，因此强化内部控制能力是我们完善内部控制系统的首要任务。 一、内控的内涵及国内保险企业内控现状. （一）什么是内部控制 内部控制指的是“企业防止舞弊的工具”①。《独立审计具体准则第9号一内部控制与审计风险》中对内部控制作了定义：“本准则所称内部控制．是指被审计单位为了保证业务活动的有效进行．保护资产的安全和完整，防止、发现、纠正错误与舞弊，保证会计资料的真实、合法、完整而制定和实施的政策与程序。内部控制包括控制环境、会计系统和控制程序。 （二）国内保险企业内部控制现状 纵观中国保险公司内部控制演进步程，国内保险企业内部控制建设终究是取得了一定的成效，但总体上内部控制环节仍旧比较薄弱．内控功效表现紊乱、机制失衡，从而引发行业内的经济犯罪和经营失误屡见不鲜，与国际上保险行业内部控制水平依旧存在较大差 ①出自《独立审计具体准则第9号一内部控制与审计风险》（会协字〔1996〕456号）1996.12.26出版

距： 1.保险公司内部控制建设的动力不足 在中国保险行业内部控制发展的过程中，来自保险公司外部的推动因素作用一直都有着举足轻重的作用，而保险公司内部自身强化建设的意愿较弱。国外监管市场存在着一句名言：“如果将外部监管变成金融机构内控不足的步补充，风险的悲剧就会不断上演。”金融机构的内部控制是金融市场健康运行的基础和前提，即便是有效的外部监管和监督都无法替代金融机构的自我约束及自我内部控制。 回顾中国保险公司内部控制的发展史，中国监管部门对保险公司内部控制建设的影响实为突出，是推动中国保险公司内部控制建设的关键因素。随着中国保险监督管理委员会有关行政法规地不断颁布，依托监管部门的监督，保险公司逐渐正确认识和着手内部控制建设工作。同时，中国保险公司在参与国际资本市场的过程中，迫于国际资本市场监管的压力，内部控制水平也得到了大幅提升。 监管部门的作用如若愈是突出，愈能证明保险公司自身内部控制动力上的欠缺及乏力。对部分保险公司而言，内部控制建设是否达到监管部门的要求，也许比内部控制是否在公司实际经营过程中发挥作用更为重要。 2.内部控制体系不健全，制度建设滞后于业务发展 根据COSO报告，保险公司内部控制体系包括五大要素，即控制环境、风险管理、控制活动、信息与沟通及监督，这些要素存在于保险公司经营活动的各方各面，。很大部分的保险公司在控制活动方面制定了较多措施与制度，但仍存在精细化程度不高、深入化程度不够的问题，未能渗透到公司各项业务活动的各个操作环节，也未能覆盖

建设工程项目风险管理与保险

Value Engineering 当今经济竞争是如此的激烈，不确定因素在不断的增加，给工程项目带来了各种风险，因此，风险管理和保险在项目管理中受到普遍的重视。 1风险管理 随着我国经济的快速发展，工程项目必然向规模大、难度高、材料新颖、施工工艺要求高等方面发展，工程项目管理的重要性越来越明显。而我国的项目管理经验不足，与发达国家的管理水平有一定的差距。本文结合国际项目管理中的风险管理做一简单的论述。 1.1工程项目风险的概念。（1）什么是风险？事先不能确定的内部和外部的干扰因素，就是风险。（2）什么是风险管理？风险管理就是人们对潜在的意外损失进行识别、评估，并根据具体情况采取相应的措施进行处理，即尽可能有备无患或在无法避免时亦能寻求切实可行的补救措施，从而减少意外损失或进而使风险为我所用。（3）为什么要风险管理？一项工程的工期长、参与方多、易受外界影响，这样就会导致成本增加，利润减低，甚至有可能使项目失败。这样的案例在我国是很多的，结果造成大量的资源浪费。 1.2工程项目风险的特点。（1）风险的客观性与必然性。在整个工程项目中，风险的存在与发生，总体而言是一种必然现象。（2）风险的多样性。在一个工程项目中有许多种类的风险，如自然风险、政治风险、合同风险、经济风险等，这些风险之间又有复杂的内在联系。（3）风险在整个项目生命期中存在，而不仅仅是在实施阶段。如：在设计阶段，可能存在专业不协调、地质不确定、图纸错误等；在施工阶段，可能存在物价上涨、资金缺乏等。（4）风险影响全局性。如：气候异常导致工程停滞，带来了工期的延长，同时也增加了费用。一个活动受到风险干扰，可能影响到与它相关的许多活动，因此，在工程项目中的风险影响，随着时间推移有扩大的趋势。（5）风险有一定的规律性。工程项目的环境变化、项目的实施有一定的规律性，所以，风险的发生和影响也有一定的规律性，是可以预见的。需要管理人员要有风险意识，重视风险，对风险进行全面的控制。 1.3风险管理中常有的应对方法。（1）风险回避。风险回避是一种消极的风险处置方法，再大的风险也只是可能发生，也有可能不发生。采取回避，当然是能彻底消除风险，但同时也失去了可能的收益。应该根据自身特点，回避风险大的，选择风险小或者适中的。（2）风险减轻。对损失小、概率大的风险，可采取控制措施来降低风险发生的概率，对于风险已经发生的，要采取措施尽可能的减少损失。风险控制与风险回避不同，风险控制是一种积极、有效的处理方式，它能有效地减少项目因风险事件而造成的损失。（3）风险保留。对损失小、概率小的风险留给自己承担，要主动承担风险，而不是被动承担，被动承担往往造成严重后果，使项目遭受重大的损失。（4）风险预防。风险预防有汇率风险的预防、技术风险的预防、合同风险的预防。通常风险预防采用技术措施或管理措施来防止不确定因素的出现或者减少已经出现的因素，降低风险发生的概率，做到防范于未然。（5）风险转移。风险转移又分为保险风险转移和非保险风险转移。保险风险转移在国外是很常见是事，但在国内的案例不多，主要是由于管理人员对风险的意识淡薄。 非保险风险转移有：担保合同、租赁合同等。通过合同转移风险在国内外都很普遍，通过合同可以降低个体的风险。但要选择信誉好、能力强合作伙伴。 2工程保险 在国际中，投保是应对风险的一种重要手段和普遍做法。随着我国经济的快速发展和工程建设的需要，以及我国管理人员对风险意识的不断增强，参与保险的项目会越来越多，工程保险市场前景广阔，在此介绍一下国际工程中使用的保险。 工程保险是以承保建筑为主体的工程，在整个建设期间，由于保险责任范围内的风险给工程项目造成损失而提供经济赔偿保障的保险。 2.1工程保险的特征有：（1）承保风险的特殊性。工程保险承保的项目绝大多数是在风险中，同时，工程施工工程中始终处于动态的，各种风险相互联系，使得风险程度增加。（2）风险保障的综合性。工程保险既承担财产损失的风险，又承担责任风险，还可以根据工程项目情况承担其他风险。（3）投保人具有广泛性。可以是业主，也可以是承包人，任何一方都可以投保。 2.2工程保险的分类：（1）综合工程险。主要针对因自然灾害和意外事故造成的财产损失和依法应对第三人人身伤害所承担的经济赔偿责任提供保障的一种综合性保险。（2）雇主责任险。主要是保护业主和承包商的雇员遭受工伤时雇主应承担的责任而设立的保险。（3）工程延误及预期损失险。是针对因自然灾害和意外事故导致工程不能按期交付，并由此造成预期收益损失提供的保险。（4）工程质量保险。是针对承包商为保证工程完工后出现的质量缺陷进行修理、弥补、赔偿提供可靠的资金保障的保险。（5）货物运输险。此保险包括海洋运输保险、路上运输保险等。（6）施工机具险。是对施工机具在使用或停放过程中，因自然灾害或意外事故造成的损失提供的保险。（7）雇员忠诚险。主要是弥补因雇员的欺骗或不忠行为而给项目造成损失设立的保险。（8）职业责任险。与工程项目关系最大的是设计责任险，主要的承担设计人员在设计过程中的疏忽、过失而引发的工程事故，造成工程本身的经济损失和产生的诉讼费用。在国际中，设计公司常常为设计师投保，有些国家的行业协会，强制要求为技术人员投保职业责任险。（9）履约保障险。针对因承包商自身的错误导致合同不能履行时，为保障业主及时聘请其他承包商继续施工所提供的保险。 总之，风险管理与保险是现代工程项目管理中必不可少的一项工作，通过剔除风险以减少成本，从而给业主带来更多的经济效益，最大限度地实现业主的建设目标。 参考文献： [1]李慧民.工程项目管理[M].北京:中国建筑工业出版社. [2]李慧民.建筑工程经济与项目管理[M].北京：冶金工业出版社. [3]全国二级建造师职业资格考试用书.建设工程施工管理[M]. [4]雷胜强.国际工程风险管理与保险[M].北京：中国建筑工业出版社. 建设工程项目风险管理与保险 On the Risk Management and Insurance of the Construction Project 王清波Wang Qingbo （泉州市建设系统培训中心，泉州362000） （Quanzhou Building System Training Center，Quanzhou362000，China） 摘要：在我国的许多项目中，由于没有风险意识而造成的损失是巨大的，同样，风险和盈利是同时存在的，通常风险大的工程项目才有较高的盈利，降低风险的目的就是减少不必要的成本开支，以实现目标利润，创造良好的经济效益。这样，风险管理就成为项目管理的重点之一。 Abstract：In many of the programs in our country，the losses are great due to the lack of risk awareness.Both the benefits and challenge exist.Risky projects often have higher earnings，lower risk is the objective of reducing unnecessary costs to achieve target profit，to create a good economic benefits.In this way，risk management has become one of the key project management. 关键词：工程项目风险管理；经济效益；应对方法；工程保险 Key words：the risk management of construction；economic benefits；measures；project insurance 中图分类号：TU723文献标识码：A文章编号：1006-4311（2010）04-0163-01 ·163·

保险公司风险管理(风险分类)

保险公司风险管理 根据《保险公司风险管理指引（试行）公司将风险定义为对实现保险经营目标可能产生负面影响的不确定性因素。公司参照该指引借鉴国际现行的风险分类方法，同时考虑到公司的实际情况将风险分为定性风险和定量风险两大类，具体分类如下： 一、定性风险 （一）战略风险指由于战略决策或发展规划错误给公司业务带来不利影响的风险。（二）声誉或品牌风险：由于客户对公司的不良印象而对经营造成不利影响导致的风险。 二、定量风险 （一）保险风险指由于死亡率、疾病率、赔付率、退保率等判断不正确导致产品定价错误或者准备金提取不足，再保险安排不当，非预期重大理赔等造成损失的可能性。 （二）市场风险是指由于利率、汇率、权益价格和商品价格等市场价格的不利变动而造成的损失，以及由于重大危机造成业务收入无法弥补费用的可能性。 市场风险可以分为： 利率或资产负债匹配风险：指由于利率的变动给公司造成损失的风险。 权益风险指：由于股价的变动给公司造成损失的风险。 汇率风险指：由于汇率的变动给公司造成损失的风险。 商品风险指：由于商品价格变动给公司造成损失的风险。 流动性风险指：由于面临到期支付时持有的资产流动性差和对外融资枯竭而造成损失或破产的可能性。 （三）信用风险是指由于债务人或者交易对手不能履行合同义务，或者信用状况的不利变动而造成损失的可能性。 违约风险：指不履行按合同所承担的义务，给公司造成损失的风险。 利差风险：指由于与基准的差异发生变化，导致价值的波动给公司造成损失的风险。 迁移风险：指由于信用级别的变化，引起价值的波动，给公司造成损失的风险。 再保风险：指再保险公司信用级别的变化以及不能履行合同所承担的义务而给公司成损失的风险。 （四）商业风险指在重大危机过后，保险业务的未来的收入不能覆盖未来的费用——不包括这些已经被其他种类风险所包含的费用和收入项目。商业风险是由于人们对未来可能发生的费用、已经存在的商业竞争（持续性）和未来如何重新定价的不确定而引起的结果与预期之间的偏差。 （五）操作风险指由于操作流程不完善、人为过错和信息系统故障等原因导致损失的可能性。

保险公司风险管理

保险公司风险管理 据瑞士Sigma统计，从1978—1994年16年间，世界上有648家保 险公司破产，尤其是1996—2001年，保险业高度发达的日本连续7 家生命保险公司破产。在我国，标准普尔在《中国保险业信用前瞻2006—2007》中对我国保险业风险的评价是：无论寿险还是非寿险的 行业风险依然较高。这给我国保险业敲响了警钟：保险公司在经营风 险产品的同时，必须增强自身的风险管理。美国反舞弊财务报告委员 会的发起组织委员会(COSO)发布的企业风险管理框架提出的全新的风 险管理理念和技术对于我国保险企业的风险管理具有极大的理论和实 践意义。 一、保险企业实施全面风险管理的必要性和重要性 保险公司的风险管理是一个永恒的话题，保险公司围绕总体经营目标，通过在企业管理的各个环节和经营过程中执行风险管理的基本流程， 培育良好的风险管理文化，建立全面风险管理体系，可以起到防范和 化解风险、保护资产的安全与完整、保证经营活动合法合规和企业经 营战略有效实施等重要作用，因此，是否实施全面的风险管理是衡量 保险企业经营管理水平高低的重要标志。 (一)保险国际化的趋势日益明显 在经济全球化的大背景下，保险国际化的趋势日益明显，一方面表现 为客户保险需求的全球化，跨国公司基于其全球经营业务在世界范围 内安排其风险管理与保险计划；另一方面表现为保险人通过国际间的

保险资本运作、对冲机制、战略联盟等多种形式，满足巨灾保险、金融风险管理等迅速增长的需求，在国际范围内寻求新的生存和发展空间。20世纪60年代出现的真正意义下的自保公司，70年代由荷兰人首创并迅速风靡全球的银行保险，80年代人寿保险业出现的以万能寿险和变额寿险为代表的产品创新，90年代出现的保险风险证券化以及大量新型风险转移工具，特别是近年来，处于前锋地位的保险人、保险经纪人、政府保险机构及民间保险组织，如安联保险等，已经在综合风险管理(IntegrateRiskManagement)、非传统风险转移工具(AlternativeRiskTransfers)等新型保险产品和技术等方面进行了大量的创新，保险保障的范围已经大大突破了传统意义上的可保风险范畴，从而预示着未来保险业的革命性变化。 (二)保险资金面临的投资风险越来越大 随着金融市场的创新与融合，保险资金运用渠道的逐步拓宽，可投资品种逐步增加，从普通的债券投资发展到权益类投资、从国内市场拓展到境外市场，保险资金特别是寿险业资金面对的各种风险也越来越复杂。例如，寿险保单存续期一般都长达20至30年，相对应的在资金运用中要考虑20-30年存续期的投资与之相匹配。投资于固定收益资产的寿险资金，对利率的变动非常敏感，市场利率的微小波动会导致资产价值的较大变动。据统计，到2006年8月，债券已经成为保险资产配置的最主要工具，投资规模已经达到8777亿元，其中，持有国债和金融债余额分别达到3674亿元和2416亿元，债券资产占保险资产运用的比重由2001年的28.4%上升到2006年的55.2%，保险公司