ISO AUTO DEALER COVERAGE FORM EXPOSURE ANALYSIS CHECKLIST

(October 2019)

This checklist is designed to assist in beginning the analysis of the Insurance Services Office (ISO) Auto Dealer Coverage Form. This is only a starting point and additional risk specific questions may arise as the exposures are developed. This analysis should be combined with exposure analysis checklists for other coverages to develop a complete picture of the insured’s operations.

This checklist is designed to supplement the ACORD application.

A list of endorsements may be helpful as you discuss exposures with your client.

ISO Auto Dealer Coverage Form Available Endorsements and Their Uses

ISO Auto Dealer Coverage Form Endorsements Checklist

GENERAL INFORMATION

Legal business name(s)

____________________________________________________________________________________

Mailing address:

____________________________________________________________________________________

Type of entity:

___ Individual	___ Corporation	___ Sub-S Corp.
___ Partnership	___ Joint Venture
___ Not-for-profit	___ Limited Liability Company

SIC Code(s): _________________________________________________________________________

NAICS Code(s):_______________________________________________________________________

Federal ID Number: ____________________________

When did the applicant start business operations? ___________________________________________

When did the present management assume control? _________________________________________

How many years of experience does the owner have in this type of business? _______________________

How many years of experience does the manager have in this type of business? _____________________

Has the applicant ever been involved in a bankruptcy procedure? ___ Yes ___ No

If yes, explain including the type of bankruptcy, the filing date, and the resolution.___________________________________________________________________________________

____________________________________________________________________________________

Names of subsidiary companies or joint ventures that are not part of this application:

____________________________________________________________________________________

Important People	Name	Phone Number
Owner/Principal:	____________________________	______________
Other Decision Makers:	____________________________	______________
Plant and Grounds:	____________________________	______________
Financial:	____________________________	______________
Legal:	____________________________	______________
Claims:	____________________________	______________

The applicant’s primary operations are:

____________________________________________________________________________________

The applicant’s secondary and incidental operations are:

____________________________________________________________________________________

The applicant used to be involved in the following operations, but they have been discontinued:

____________________________________________________________________________________

The hours of operations are: _____________________________________________________________

How many days per week is the applicant open? ___

Is this a seasonal operation? ___ Yes ___ No

If yes, what is the season? From _____________ to _____________

Does the applicant have a safety program? ___ Yes ___ No

If yes, answer the following:

Name of safety director: _________________________________________________________

Safety director phone number: __________________________________________________

Safety director email address: _____________________________________________________

Attach a copy of the safety program.

Does the applicant have a disaster plan? ___ Yes ___ No

If yes, answer the following:

Disaster coordinator phone number: ______________________________________________

Disaster coordinator email address: ________________________________________________

Attach a copy of the disaster plan.

Clientele Age: ___ 18-25 ___ 25-35 ___ 35-50 ___ Over 50 Years

Clientele Origin:	___ Families	___ Business/Professional
	___ Students	___ Military
	___ Other

Describe other.

____________________________________________________________________________________

Does the establishment draw its customers primarily from the immediate area? ___ Yes ___ No

If no, explain what draws customers to the establishment.

____________________________________________________________________________________

Is the establishment located in a shopping center? ___ Yes ___ No

DRIVER INFORMATION

List the names of drivers who maintain a Commercial Drivers License (CDL).

____________________________________________________________________________________

Are any officers, partners, or employees furnished an automobile for their personal use? ___ Yes ___ No

Do individuals with a furnished automobile purchase automobile insurance on personally owned autos?
___ Yes ___ No

Do owned vehicles tow special equipment such as air compressors or concrete mixers? ___ Yes ___ No

Are any automobiles used in parades or other events? ___ Yes ___ No

Are any vehicles laid up for more than 30 consecutive days or more due to seasonal
operations? ___ Yes ___ No

If subcontractors are used, are procedures in place to monitor the timely receipt of certificates of insurance?
___ Yes ___ No ____No subcontractors

If yes, describe.

____________________________________________________________________________________

Are any automobiles equipped with cellular telephones, two-way radios, citizens band radios, or similar devices? ___ Yes ___ No

If yes, describe.

Unit # Type Value (ACV)

____________________________________________________________________________________

How many automobiles are parked at one location overnight?

Location # of Vehicles Value

____________________________________________________________________________________

Describe lot protection.

____________________________________________________________________________________

Does the applicant lease or rent vehicles to others with operators? ___ Yes ___ No

Does the applicant lease or rent vehicles to others without operators? ___ Yes ___ No

Does the applicant travel to Canada or Mexico? ___ Yes ___ No

Do vehicles have theft alarms? ___ Yes ___ No

Does the applicant tow vehicles? ___ Yes ___ No

If yes, answer the following:

Describe how vehicles are identified prior to tow.

_________________________________________________________________________________

Are all drivers trained in attaching the vehicle securely? ___ Yes ___ No

Provide a copy of the standard test drive procedures.

Are any vehicles furnished for groups or organizations? ___ Yes ___ No

If yes, identify the group and the purpose.

____________________________________________________________________________________

Does applicant 'drive away' or 'haul away' vehicles from factory points of distribution or other dealers?
___ Yes ___ No

If yes, answer the following:

How often does the applicant 'haul away' or 'drive away'? _______________________

How many cars are handled in a single trip? ____

What is the maximum radius of operation for such a trip? ______________

ON PREMISES EXPOSURES

Describe the applicant’s on-premises operations.

____________________________________________________________________________________

Describe how the applicant disposes of waste.

____________________________________________________________________________________

Are large panes of glass, both inside and outside, properly marked or etched to prevent accidental contact?
___ Yes ___ No

Does the applicant own, jointly own, hire, or lease any watercraft or aircraft? ___ Yes ___ No

Note: If yes, there is limited or no coverage for these operations under the Garage policy. Consider completing the appropriate Aircraft Ownership or Ship or Boat Ownership Supplement.

What are the percentages of types of floor covering in public areas?

___% Wood ___% Linoleum ___%Tile ___% Carpet ___% Other

Describe other.

____________________________________________________________________________________

How many exits are available? ______

Are all exits free of obstruction, lighted and marked with exit signs? ___ Yes ___ No

Is there emergency lighting? ___ Yes ___ No

Are all exits equipped with panic door hardware? ___ Yes ___ No

If no, are all exits kept unlocked during business hours? ___ Yes ___ No

PARKING LOTS AND SIDEWALKS

Have arrangements been made for snow and ice removal from the parking lot
and walkway? ___ Yes ___ No

If located along a busy highway, are entrances and exits well defined to allow a smooth flow of traffic?
___ Yes ___ No

Are areas where customer's view vehicles blocked from regular parking lot traffic flow? ___Yes ___ No

Are parking lots entrances blocked when the dealership is closed? ___ Yes ___ No

CONTRACTUAL EXPOSURES

Does the applicant lease the premises? ___ Yes ___ No

If yes, answer the following:

Is there a written waiver-of-rights provision for damages to property? ___ Yes ___ No

Is there a written waiver of subrogation? ___ Yes ___ No

Is there a written hold harmless agreement? ___ Yes ___ No

Are maintenance responsibilities delineated clearly in the contract? ___ Yes ___ No

Indicate under which of the following agreements the applicant has assumed liability of others:

___ Lease agreements for real estate	___ Lease agreements for signs, refrigerators, etc.
___ Sidetrack agreements	___ Contracts for electric power, steam, etc.
___ Easement agreements	___ Elevator maintenance
___ Other contracts such as construction, installation, compliance certificates, etc.

Attach a copy of each contract and/or agreement indicated above.

Is the applicant’s insurance policy required to be primary under any of the indicated contracts?
___ Yes ___ No

SUBCONTRACTORS

Does the applicant regularly use subcontractors? ___ Yes ___ No

If yes, answer the following:

Describe the type of work the subcontractors perform.

_________________________________________________________________________________

Describe procedures used to monitor the timely receipt of certificates of insurance.

_________________________________________________________________________________

Is there a written contract? ___ Yes ___ No

If yes, attach.

If no, describe the terms and agreements between the applicant and the subcontractor.

_________________________________________________________________________________

PERSONAL AND ADVERTISING INJURY EXPOSURES

Does the applicant advertise its products, goods, or services? ___ Yes ___ No

If yes, what media are used and what is that medium’s percentage of the overall advertising budget?

___% Television	___% Direct mail	___% Radio
___% Signs	___% Newspaper	___% Yellow Pages
___% Magazine	___% Internet	___% Other

Describe other.

____________________________________________________________________________________

Does the applicant have a web page? ___ Yes ___ No

Does the applicant use an advertising firm and/or outside web designer? ___ Yes ___ No

PRODUCTS

Describe all of the applicant’s products or services.

____________________________________________________________________________________

If the product or service is defective or used improperly, describe the possible damage that could occur.

____________________________________________________________________________________

Is the applicant named on the manufacturer's policy as a vendor? ___ Yes ___ No

Does the applicant receive regular training from manufacturer when new products are being introduced?
___ Yes ___ No

Does the applicant directly import any product? ___ Yes ___ No

Does the applicant recondition used goods to sell? ___ Yes ___ No

If yes, describe the process.

____________________________________________________________________________________

What percentage of mechanics is certified by the National Institute of Automotive Service Excellence (ASE)? ______%

Does any of the equipment used in the garage require certification? ___ Yes ___ No

If yes, how is the certification process verified?

____________________________________________________________________________________

Is there a written quality control procedure? ___ Yes ___ No

If yes, attach a copy of the procedure.

LIQUOR

Does the applicant ever serve, sell, or furnish alcoholic beverages to employees, customers
or general public? ___ Yes ___ No

If yes, what precautions are taken to prevent guests from driving while intoxicated?

____________________________________________________________________________________

CUSTOMER’S AUTOMOBILES

Locations where customers’ autos are kept:

Location Location owner # of vehicles Maximum value

____________________________________________________________________________________

If the applicant is not the owner, is there a contractual relationship between the owner and the applicant?
___ Yes ___ No

If yes, attach the lease agreement.

Describe the lot protection at each location (fences, dogs, alarms, video, or guards).

____________________________________________________________________________________

Describe the procedures to protect the customer’s keys from being stolen.

____________________________________________________________________________________

Are vehicles locked when unattended? ___ Yes ___ No

Does the applicant pick up or deliver customers’ vehicles? ___ Yes ___ No

Does the applicant park customer cars on public streets and/or other lots? ___ Yes ___ No

Are vehicles left overnight? ___ Yes ___ No

If yes, describe precautions to protect the vehicles.

____________________________________________________________________________________