JULY 2020
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PLUS: X AASP-MN Executive Director
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HONORED X INSURANCE CONSIDERATIONS for
RIOTS, VANDALISM and CIVIL UNREST
Your Champion. Your Ally. www.aaspmn.org
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AASP-MN News is the official publication of the Alliance of Automotive Service Providers, Minnesota, Inc. 1970 Oakcrest Ave., Suite 102 Roseville, MN 55113 Phone: 612-623-1110 Fax: 612-623-1122 email: aasp@aaspmn.org website: aaspmn.org. To keep its readers better informed, AASP-MN News allows its columnists to fully express their opinions. All views expressed are not necessarily those of the publication. AASP-MN News is published by Thomas Greco Publishing, Inc. 2020 All rights reserved. Cover image www.istockphoto.com.
AASP of Minnesota is an association of independently-owned automotive service businesses and industry suppliers dedicated to improving the state’s automotive service industry and the success of its members.
AASP-MN BOARD MEMBERS 2020 - 2021 PRESIDENT Matthew Feehan
CONTENTS Vol. 29 No. 7
ASSOCIATE DIVISION DIRECTOR’S MESSAGE ..........................4 Conducting Business in the New Normal by Loren Feldkamp, Associate Division Director LEGISLATIVE UPDATE................................................................6 Reliving the Stresses of a Half Century Ago by Kevin Walli, AASP-MN Lobbyist LOCAL NEWS ............................................................................8
IMMEDIATE PAST PRESIDENT Carl Thomas SECRETARY-TREASURER Tom Archambault COLLISION DIVISION DIRECTOR Jesse Jacobson MECHANICAL DIVISION DIRECTOR Tony Newman
COVER STORY ..........................................................................12 Better Days: MN Shops Keep Business Alive by Joel Gausten INSURANCE I.Q. ........................................................................14 Insurance Considerations for Riots, Vandalism and Civil Unrest
ASSOCIATE DIVISION DIRECTOR Loren Feldkamp COLLISION SEATS Randy Miller Lee Schlosser
CASH IN ON YOUR MEMBER BENEFITS! ....................................16 Assure Business Success by Hiring the Right People!
MECHANICAL SEAT Jeremy Nordgren
AASP-MN MEMBER BENEFITS ..................................................16
STAFF
DIGITAL BONUS CONTENT (@ WWW.GRECOPUBLISHING.COM)
EXECUTIVE DIRECTOR Judell Anderson, CAE OFFICE ADMINISTRATOR Jodi Pillsbury MEMBERSHIP COORDINATOR Tom Kluver
Complete Health, Environmental and Safety Services (C.H.E.S.S.): Cleaning and Cleaning and Cleaning DEG Estimating Tips Lang iReport
PUBLISHED BY: Thomas Greco Publishing, Inc. PUBLISHER Thomas Greco | thomas@grecopublishing.com SALES DIRECTOR Alicia Figurelli | alicia@grecopublishing.com GRAPHIC DESIGNER Lisa M. Cuthbert | lisa@grecopublishing.com EDITORIAL DIRECTOR Joel Gausten | joel@grecopublishing.com EDITORIAL & CREATIVE COORDINATOR Alana Bonillo | alana@grecopublishing.com OFFICE MANAGER Donna Greco | donna@grecopublishing.com
www.grecopublishing.com
ADVERTISERS’ INDEX aaa Parts................................................................14 AmeriPride ............................................................15 Buerkle Hyundai..................................................17 C.H.E.S.S.................................................................15 Toyota Group ......................................................7 Dentsmart ............................................................18 FinishMaster ........................................................9 Inver Grove Honda/Inver Grove Toyota ....5 Jack McClard........................................................13 Keystone ..............................................................8
AASP-MN News
Maplewood Toyota............................................17 Mopar Group ......................................................13 Morrie’s ................................................................4 Motorwerks BMW ..............................................IBC MPA ........................................................................11 Proven Force........................................................OBC Reliable Automotive Equipment....................10 Rosedale Chevrolet............................................18 Sherwin Williams - Matrix ................................IFC Straight & Square................................................6
July 2020 | 3
ASSOCIATE DIVISION DIRECTOR’S MESSAGE
Conducting Business in the New Normal 2020 is certainly turning out to be a disruptive year for all economic segments and industries. The COVID-19 pandemic continues to rage, and many fear a second wave of cases as we atLoren Feldkamp tempt to re-open the economy. Financial experts state that the markets AASP-MN Associate Division experienced the fastest decrease ever Director recorded in a 20-day period. We are fortunate that higher levels of consumer confidence about economic recovery exist and that the markets have rebounded. They have not recovered the full decrease but have recovered a significant amount faster than in previous recessions. U.S. manufacturing has seen some gains during this period, as several large companies have announced moving manufacturing plants back to the United States from other countries. The automotive segment has been affected as well. Crude oil and fuel prices have decreased. Gasoline prices have also decreased significantly, leading to
4 | July 2020
strong markets for the truck and SUV classes. In 2019, a SUV model claimed the top passenger vehicle sales spot, followed by four other SUV models also placing before any sedan models. The projected increase in EV models has obviously been delayed more by the reduced gasoline prices. However, all industries, including our automotive industry, have experienced high unemployment rates and drops in manufacturing and sales volumes. Our challenge, like many other industries, is how to return to normal business volume among the challenges of safety and social distancing. Many office employees have been working from home during this pandemic, a trend that will likely continue as we return to a new normal. As workers start to return to prepandemic work situations, social distancing and worker safety takes precedence. More businesses and other organizations are conducting meetings and presentations using various digital platforms, such as Zoom, Skype and other virtual meeting sites. Commu-
AASP-MN News
nication with current and prospective customers is being accomplished digitally as well. I am hopeful watching Microsoft and others develop even more user-friendly and secure meeting sites in the future. The effect on all our businesses is varied. We are all learning new ways to safely conduct typical business transactions. Whether it be internal or outgoing communications, we all need to adapt to the new normal. The safety of customers and employees continues to be of the utmost importance as we attempt to re-open the economy. Cyber security is important, as digital communications are being used more often. Remember to use password-protected digital meeting sites, as cyber criminals can easily break into those unprotected sites to steal identity information. Automotive industries have been deemed essential, and I am certain that our industry is in better shape than the restaurant/bar businesses, airlines, professional and amateur athletics and many other industries. The automotive segment has experienced some additional changes during this time. Mass transit ridership is down, so miles driven in personal vehicles may have seen a relative increase. In addition, the need to
keep vehicles and businesses disinfected has increased during this time. LubeTech and other distributors have sold disinfectant systems, supplies and chemicals to a variety of customer types. Some customers sell this service, some donate the service and many use the products internally, depending on the specific business. Disinfecting vehicles and surfaces in businesses has become a top priority during this time. The outlook is not certain. Many believe that we will not return to pre-pandemic economic levels until COVID-19 vaccines are developed and available. The medical industry is developing additional knowledge and treatments daily, but the vaccines may not be available for use until sometime in 2021. Until then, we all need to embrace conducting business in new and different methods. AASP-MN is leading the way with digital communications and frequent updates related to running our businesses in the new normal. I wish you all the best as we attempt to re-open the economy. Please continue to consider safety and health as we work to overcome the effects of this pandemic.
AASP-MN News
July 2020 | 5
LEGISLATIVE UPDATE
Reliving the Stresses of a Half Century Ago Kevin Walli
Protests in the streets! Tremendous loss of life! Heated Presidential campaign! No, it’s not 1968, but we’re hearing echoes of that infamous year as we get halfway through 2020. As much as we would like to put this year behind us as quickly as possible, I expect we will feel the repercussions for years to come. The double impact of the coronavirus pandemic and the in-broad-daylight killing of George Floyd while in police custody have created numerous challenges for our economy and for our society. The State of Minnesota saw a $1.5 billion projected budget surplus turn into a $2.4 billion projected revenue shortfall in a matter of weeks. Businesses of every type and of every size are teetering financially. In addition to the state, our cities and counties are facing dramatic budget deficits which compromise their ability to respond to some of the basic services that we may take for granted. The work of filling these gaps is still underway at AASP-MN Lobbyist
the state Capitol. As we prepare this article, we are in the midst of a special session of the legislature, called by Governor Walz, to make decisions about the state’s response to the pandemic and policies governing police action. As the Walz Administration and legislative leaders come to terms on how to address our many challenges, we will report back to members. The most directly impactful action of the legislature for AASP-MN members relates to the administration of loans and grants to small businesses. As decisions are made about how funds are allocated across the state, we will strive to share information with the association so that repair shops can participate in programs which may keep them financially stable or put them back on their feet financially. Please don’t hesitate to contact the association office if you have questions about particular state programs. We will always dig deeper to share information with members.
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6 | July 2020
AASP-MN News
WHY GENUINE PARTS? It’s the Right Thing to Do
You lose money when aftermarket parts don’t fit. Toyota Dealers are your best source for Genuine Toyota Parts. All it takes is one call. For Toyota Genuine Parts please call one of these authorized local Toyota Dealers: Inver Grove Toyota 1037 Highway 110 Inver Grove Heights, MN PH: 651-306-4630 FAX: 654-457-8705 www.invergrovetoyota.com
Burnsville Toyota 14730 Buck Hill Road Burnsville, MN 55306 800-448-5912 PH: 952-435-8401 FAX: 952-435-8515
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Maplewood Toyota 2873 Highway 61 Maplewood, MN 55109 PH: 651-490-2648 FAX: 651-490-2652 TOLL FREE: 877-574-0667 parts@maplewoodtoyota.com
ToyotaPartsAndService.com AASP-MN News
July 2020 | 7
LOCAL NEWS
The Alliance is proud to announce that its Executive Director, Judell Anderson, has been selected as a member of the inaugural class of the 2020 Aftermarket News (AMN) Women at the Wheel. Judell was nominated by Dave Bock (sales manager/independent stores, Automotive Parts Headquarters/Auto Value) in recognition of her dedication and contributions to the automotive aftermarket. Bock stated, “I’ve been involved with AASP-MN (now Alliance) since the late ‘90s, when we rolled out the Lights on for Safety program. From day one of working with Judell, I could tell she was totally invested in helping the automotive industry and the Alliance membership. This recognition is well-deserved and overdue.” Judell said, “It’s always nice to be recognized, and especially by a valued industry member and colleague.
8 | July 2020
After 24-plus years, I still love my job, and it’s humbling and gratifying to know that my efforts are appreciated by those I serve. Judell and her classmates were honored in the May issue of Aftermarket News magazine. Congratulations, Judell! AASP-MN Weekly Updates At AASP-MN, one of our top priorities is making sure our members receive the most relevant, up-to-date news and information. To that end, the Alliance uses a mass email program, which we believe is the most efficient way to provide our members with this timely, valuable information. Since mid-March, we have been emailing COVID-19 updates at least weekly, including information about funding and other resources available to members. If you have not been receiving this information, check your “spam” and “junk” folders in your email program. Feel free to call the AASP-MN office and we’ll try to help you resolve any technical issues that may be preventing you from receiving this valuable information!
AASP-MN News
Attention AASP-MN Members! Complete Your Member Profile The AASP-MN website was designed to help you seek out other AASP-MN members when looking for services, tools/equipment or general advice and has search capabilities to facilitate those connections. However, in order for the search results to include information about your shop, you must complete your member profile on the website. To do that, go to aaspmn.org and click on the “Members Only” button in the upper right corner. You will be prompted for a username and password. (If you don’t know this information, contact the AASP-MN office.) Once you are logged into the site, click on “Members Only” on the navigation bar. A drop-down menu will appear. The first option on that menu is “My Profile.” Click on the “My Profile” option to update your company profile. Once you’ve completed your profile, hit the save button at the bottom of the page. Please take the time to check out all of the great information and resources on the AASP-MN website, including:
Thank You to Our Sponsors Information about: • Association news • Member benefit programs • The Get to Know Your Neighborhood Auto Repair Pro campaign • Current and past legislative activities and find your legislator • Industry training and upcoming events
Member shops, tools and equipment: • Search our database to find a member shop in your area, see what diagnostic or other equipment they own, what repair information they subscribe to, which management system they use and more! Our extensive database was designed to help members connect with – and be a resource to – other members. So be sure to login and complete your member profile!
Resources/links: • Regulation of Claims Practices and Prohibition on Insurers Statutes • Truth in Repairs Act • Insurer Unfair Claims Practices Report • MN Motor Vehicle Damage Disclosure and Reporting Requirements • P-Pages, DEG and other estimating resources • OEM service information • MPCA Fact Sheets and other regulatory compliance information
The following companies have made sponsorship commitments for AASP-MN’s educational programming and other activities in 2020: Platinum Fix Auto LKQ-Minnesota Lube-Tech & Partners Gold AASP National Auto Value Parts Stores/APH Axalta Coating Systems CBIZ AiA FinishMaster Podium PPG Automotive Finishes United Fire Group
Silver aaa Auto Parts AmeriPride Services Colonial Life Enterprise Rent-A-Car O’Reilly Auto Parts PAM’s Auto, Inc. Sherwin Williams Single Source/NCS Suburban Chevrolet Bronze C.H.E.S.S. Twin Cities Auto Glass
ASE Certifications Extended ASE has extended all ASE certifications that were to expire June 30 to a new date of December 31. “During these challenging times, we don’t want service professionals to worry about expiring ASE certifications,” said Tim Zilke, president and CEO of ASE. More information about ASE certification and testing can be found at ase.com. Upon successful completion of an ASE test, ASE certification credentials are valid for five years and have an expiration date of either June 30 or December 31, depending on when the certification was earned. Expiration dates can be found at myASE and reminders are sent before credentials expire.
Sample documents: • Complaint Letter to Department of Commerce • Loaner Car Agreement • Repair Authorization form • Notice of Hazardous Defects • Assignment of Insurance Proceeds • Sheriff’s sale instructions and documents
Consumer info: • Find a Shop • Auto Insurance Claims and Claimants’ Rights “Nuts & Bolts” brochure • Consumers’ “Know Your Rights” (after submitting an automobile accident claim to your insurance company) • Motor Vehicle Service Contracts: FTC, MN Attorney General and Consumer Reports • FTC Consumer Alerts on auto warranties and warranty scams Other:
• Automotive career and scholarship info, including links to state college automotive programs • AASP-MN News Magazine – Check out the current or past issues of the association’s monthly magazine, AASP-MN News
And, much more!
AASP-MN News
July 2020 | 9
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Cleaning and Cleaning and Cleaning By Janet L. Keyes, CIH
May you live in interesting times. That seems an appropriate curse for today. As I write this, we have protests and pandemics. While I hope none of the turmoil affects you directly, it could affect the cars you work on and the people you work with. What if an employee arrives at work feeling okay, but develops symptoms of COVID-19 over the morning? What if an unused car has become a squirrel den? What if a pepper bomb canister broke a car window and the car is towed to you? Cleaning cars used to be so easy. Grab some car soap, lather it up, rinse it off. It has gotten more complicated. People haven’t been driving as much, so that car may have turned into a rodent’s den. Sick people may have coughed up a storm in it, so in this pandemic time, we worry whether working on the car will make us sick. Do you need to call in one of those trauma clean-up companies every day? No. You can handle this – provided you follow some basic hygiene principles. Infection Control Clean, disinfect. The basic rules for that: 1) Do not use compressed air to clean. It does not clean – it just moves things from one place to another.
2) If the surface is dirty, clean it before you try to disinfect it. Any cleaner compatible with the surface can be used. 3) Use an EPA-listed disinfectant, one on the EPA N-list (cfpub.epa.gov/giwiz/disinfectants/ index.cfm) 4) Follow the label instructions. Of particular importance: a. Use it at the recommended strength. Stronger does not mean better. Stronger concentrations sometimes are less effective. b. Use the required contact time. That is the time the disinfectant must be wet on the surface. Shorter contact times mean the product may not work. 5) Protect the person doing the cleaning against infectious agents and against the cleaners and disinfectants. At a minimum, that means gloves and eye protection. 6) Cleaning surfaces is not a substitute for keeping your distance and covering your cough. The primary way COVID-19 is spread is through the air, particularly when people are close together.
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COMPLETE HEALTH, ENVIRONMENTAL & SAFETY SERVICES (C.H.E.S.S.)
COVID-19 If your employee reports symptoms of COVID-19, send that person home immediately. Then clean and disinfect the high-touch surfaces. For a receptionist, that means wiping down the countertop, keyboard, computer monitor, telephone and desktop. For someone who works on cars, wipe down the cars the employee worked on and the common tools that the employee used in the last few days. If you do not feel like cleaning those, don’t let anyone use them for a few days. You could fog your whole workplace with a disinfectant if it would make you feel better. That must be done with an EPA-listed disinfectant and an EPAregistered fogging device, shown to apply enough disinfectant to be effective. Remember that disinfection does not last – that surface is disinfected only until someone touches it. Blood and Guts As long as we’re on the topic of cleaning, what if you need to clean up blood or vomit? The same principles apply – clean, then disinfect. You are not likely to get COVID-19 from blood or other body fluids, but there are other diseases. Hepatitis B can survive up to two weeks in dried blood (that’s in contrast to HIV, which doesn’t survive outside the body). Norovirus, the most common cause of gastroenteritis (stomach flu), can survive even longer than that. If you need to clean up after bleeding or sick people, wear gloves. Clean the gross stuff with any suitable cleaner, then disinfect, following label instructions. Norovirus is harder to get rid of than COVID-19 or hepatitis B, so if you suspect that, use a disinfectant labeled for that virus. Rodents Use the same cleaning approach if rodents set up housekeeping in a customer’s car. Wear eye protection, gloves and a respirator with a particulate filter (at least an N95 – the prefilter on a paint spray respirator will work too) and thoroughly spray the debris with a disinfectant. Make sure the debris looks wet. Wait for the required contact time, then remove the debris and bag it for disposal in ordinary trash. Use disposable towels to wipe down and disinfect the area.
got into a car? This can be difficult to clean – you might want to refer the owner to a restoration service instead of trying to do it yourself. The active agents in these are oily particulates which can settle in the car’s carpet and seats. If you choose to keep the cleaning in-house, the person doing the task needs to wear chemical safety goggles (not safety glasses) and a respirator with organic vapor cartridges and particulate prefilters. Gloves and a Tyvek™ suit should also be used. A full-face respirator is recommended, but a paint spray respirator with goggles is likely to be sufficient. Start by airing out the car, leaving it outside with its doors open. Then vacuum with a high efficiency vacuum (HEPA vac). Clean all surfaces with an alkaline detergent. Porous surfaces such as carpet and foam padding in seat cushions are the greatest challenge; they may need to be cleaned multiple times or replaced. Replace the car’s cabin air filter. Personal Precautions If you are dealing with any of these, there are some basic precautions that need to be followed: 1) Read label instructions and warnings for cleaners and disinfectants. Use them according to instructions. 2) Do not mix products. 3) Keep all products in labeled containers. 4) Practice hand hygiene. Wear gloves. Keep hands away from your face (don’t rub your eyes, don’t touch your lips, don’t wipe your nose). As soon as you are done with the work, remove the gloves so your bare hand doesn’t touch the outside of the glove. Then immediately wash hands thoroughly with soap and water. 5) Protect your eyes. That means wearing eye protection (safety glasses at a minimum; safety goggles when working with strong eye irritants or corrosives). Whether you’re dealing with COVID-contaminated cars in your lot or vomit in your break room, the same principles apply – clean, disinfect, wash hands. Even though you cannot provide 100 percent protection against all of these hazards, you can keep your employees safe against most.
Crowd Control Agents (Tear Gas/Pepper Spray) What would you do if tear gas or a pepper bomb D2 |
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Longer Car Ownership Shifts DIFM
2020 Virus Impact: Vehicle Use Disruption Americans have cut back on their use of cars and light trucks in response to the regulatory and economic fallout of the 2020 virus. The economic impact of this crisis (triggered primarily by government mandates) will abruptly end the eight-year long rise of vehicles in operation (VIO) and the nine-year string of annual mileage gains. Six Major Takeaways: • Americans have cut back on their use of cars and light trucks during 2020 in response to the economic downturn, surging unemployment and increased remote working. • The abrupt slowdown of the economy has caused new vehicle sales to plunge at an unprecedented rate. New vehicle 2020 volume might not be sufficient to replace the cars and light trucks that are scrapped (taken out of operation) this year. • The percent of Americans unemployed during May is four times greater than the unemployment rate just four months earlier. Since two-thirds of car and light truck mileage is related to employment, this will have a significant impact on 2020 miles driven. • The number of Americans working remotely surged by more than 30 million in May and many will continue to work remotely for months or even permanently. This will reduce vehicle use by tens of millions of Americans. • There will be little, if any, growth in the number of vehicles on U.S. roads during 2020, with the strong possibility that VIO growth will not occur (or will proceed at a very modest pace) over the next year or two. • 2020 miles driven will suffer their greatest annual decline since World War II (75 years ago). The percentage plunge in 2020 miles will be at least five times greater than the mileage reduction during the first year of the 2008 Great Recession.
New vehicle buyers are keeping them much longer than the typical ownership cycle of just 10 years ago. Last year, buyers had retained new vehicles an average of over eight years. This is up 65 percent from 2010, when the average buyer held on to their new car or light truck approximately five years before replacement. Six Major Takeaways: • Rising new car and light truck prices, higher quality vehicles and longer vehicle financing periods have combined to motivate buyers to keep their new vehicles longer than ever before. • The 2008 Great Recession, which depressed new vehicle volume for more than four years, caused a sharp downturn in dealer bay business, which historically had been focused on vehicles under six years old. • Many dealers, because of their experiences 10 years ago, will be quick to refocus their bay activities in 2020. Many dealers, since the 2008 Great Recession, have already adopted a bay strategy extending over all makes and all years of vehicles. The 2020 virus will accelerate this trend. • With new vehicle buyers keeping them an average of more than 8 years, Dealer bays have the opportunity to promote repair among vehicles entering the so-called repair-age sweetspot (6 to 11 years). • The longer period of new vehicle ownership, which could increase even more in the next few years with the economic woes faced by Americans, will change the competitive dynamics of the light vehicle DIFM (do-it-for-me) market. • Independent repair outlets must recognize that Dealers will become more aggressive in expanding their service bay activities to older vehicles of all makes, given the sharp downturn in the new car and light truck market created by the 2020 virus.
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LANG iREPORT
ESTIMATING TIPS Audatex: Non-Reusable Parts Abbreviation A new abbreviation of NRPOEM for non-reusable parts per OEM will soon be supported as part of the vehicle data. The State of Pennsylvania (PA) Department of Insurance (DOI) regulations require that all abbreviations that may be found on an estimate be explained to the vehicle owner. To satisfy this requirement, the PDF that prints when PA state disclosure is selected has been updated with the addition of NRPOEM.
Audatex: Labor Consideration for Additional Technicians Some procedures may require the use of more than one technician to complete. Examples include team lifting, scan tool operation while driving, large or heavy parts R&I/R&R. Per DEG Inquiry 16414, Audatex states “Any additional labor for additional technicians to assist with labor tasks is not included. No change warranted at this time.” This will require an on-the-spot evaluation.
in any estimated work times. Diagnosing damage may require multiple methods and tooling. This would be an on-the-spot evaluation.
CCC: Nissan/Infiniti Database Information Delay DEG Inquiry 16423 “The current Nissan/Infiniti vehicle information has been delayed. MOTOR is working with Nissan Motors to secure access to the OEM data required to update the Nissan/Infiniti vehicles to the most current information. MOTOR anticipates releasing this content during the second and third quarters of 2020.” Additional DEG Note: Please verify part numbers and pricing from your Nissan/Infiniti parts distributor to ensure correct part numbers and pricing before finalizing repair cost.
All Three Systems: Damage Diagnosis Diagnosing damage beyond a visual assessment can be a time-consuming process during repair planning. Additional time to diagnose the damaged vehicle, research repair information and locate the root issue to a damaged component is NOT included Note: The estimating databases are all intended to be used as a GUIDE ONLY - it is important to remember that the auto body professional performing the repair is in a position to thoroughly inspect, diagnose and identify the methodology and their unique cost of the vehicle damage repair. You can view these tips and others on the DEG website, DEGWEB.ORG.
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Better Days: MN Shops Keep Business ALIVE
Summer is always a great time for Minnesota, but the season carries greater significance than ever this year. With people beginning the gradual return to their everyday lives after a months-long lockdown, collision and mechanical shops are enjoying renewed positivity. Over at Automotive Electric, LLC in Grand Rapids, owner Mike McLynn is currently enjoying a work schedule that is “the same or better” than this time last year. Although he and his eight-person staff experienced a drop in business in late March/early April, things began picking up toward the end of the latter month and have steadily increased ever since. “We’re at max capacity; we’ve been scheduling almost a week out for about the last month.” McLynn was able to keep the shop moving forward even when incoming jobs temporarily declined. “The guys needed vacation time, I had money in the bank and there’s always something here that needs to be cleaned. This is a pretty stable business; people are always going to need their transportation repaired. I had no intention of laying people off unless the drop-off lasted until August or September.” With daily operations going so well, he plans to bring in his daughter, Elizabeth, to work her first summer at the family business. Despite recent events, he sees a bright future ahead for Automotive Electric and the public it serves. “We’re outdoor-going people here, and people want to do their normal things. They are staying safe, but they’re not going to let this stop them from what they want to do. With the traffic I see in town, I fully expect it’ll be a normal summer.” Will Latuff, president of Latuff Brothers Auto Body in Saint Paul, is one of many repair professionals in the state to remain strong throughout the pandemic. “We’ve been very fortunate as far as COVID-19 goes; it really didn’t affect us during the first two months. We started to see a bit of a slowdown in May,
12 | July 2020
but it was just the work mix that seemed to change. It was similar to when Cash for Clunkers was out and the recession was on in 2008, where it was only the cars that had to be fixed that were being repaired.” Thanks to acquiring a PPP loan, Latuff was able to keep his business fully staffed since the lockdown began. With many restrictions now being lifted, he expects to see an upward climb in work as the summer carries on. “I think things are going to start returning to normal here shortly with the weather becoming nicer and nicer. Miles driven should increase, and people are getting used to how to behave and how to adapt to still go out to do what they want and live life despite what’s going on around them.” While the Minnesota industry has largely succeeded in maintaining workflow in recent months, the era of coronavirus came with considerable worries in the very beginning. “This was something completely out of everybody’s realm, and we had no idea what to expect or what this was going to do to business,” observes Dan Gleason, co-owner of Pro-Tech Auto & Truck in Corcoran. “How do you prepare for something when you have no idea of what’s on the horizon?” Gleason ultimately found answers to this question by brainstorming and sharing ideas with fellow AASPMN members as he worked to keep his customers and employees safe. He shortened workweeks when necessary, closed off the front office and stepped up his shop’s use of phone and digital communications. Not surprisingly, those last two decisions resulted in increased consumer confidence in uncertain times. “We had a lot of customers say, ‘The reason I came back to you was [because of] the way you guys have set this up.’” The hopeful mindset seen in Minnesota extends to the national industry as well. “Financially, a lot of people are going to have to
AASP-MN News
Continued on page 18
AASP-MN News
July 2020 | 13
INSURANCE I.Q.
Insurance Considerations for Riots, Vandalism and Civil Unrest Riots, vandalism and civil unrest can create unique challenges for business owners – resulting in stolen, damaged or defaced goods and extensive property damage. That is why it is crucial to secure proper commercial insurance coverage to adequately protect your business if such a situation occurs within your community. Review the following guidance for an outline of various insurance solutions that can offer compensation
14 | July 2020
for losses related to riots, vandalism and civil unrest, as well as best practices to consider when making claims in these situations. Coverage for Riots, Vandalism and Civil Unrest The following forms of commercial insurance coverage can provide protection if your business suffers a loss related to riots, vandalism or civil unrest:
AASP-MN News
• First-party property insurance – This form of coverage can offer compensation for physical losses or property damage to the insured premises and contents. Losses caused by riots, vandalism or civil unrest are typically covered on both “named peril” and “all risk” commercial policies. However, be sure to review your policy to ensure it does not exclude these situations. Keep in mind that your policy might utilize different terminology for these situations (e.g., “civil commotion” as opposed to “civil unrest,” or “riots” and “malicious mischief” as opposed to “vandalism”). Make sure you understand all policy definitions. • Business interruption insurance – This type of policy (also known as business income insurance) can provide coverage for loss of income that results from having to temporarily halt business operations to recover from a physical loss or property damage to the insured premises. For your policy to be triggered, the halt of business operations must be directly caused by a physical loss or property damage that was incurred by a covered peril – such as a vandal smashing your property’s windows with a brick. In addition, some insurers might not allow your policy to be triggered unless the physical loss or property damage results in a “complete and total” halt of business operations. This means that if the physical loss or damage only affects some of your operations – but not all – you might not be covered. With this in mind, be sure to review your policy wording to understand the full extent of your coverage. • The civil authority clause – Most business interruption policies also include a civil authority clause, which can offer compensation when an action or order of civil authority temporarily prevents or restricts access to the insured premises – forcing the affected business to either limit hours or halt operations altogether. Although this clause still requires a physical loss or property damage to occur in order to be triggered, the damaged property does not necessarily have to be owned by your busi-
ness – it typically just needs to occur within a set distance of your operations. • Extra expense insurance – This type of policy can provide coverage for additional expenses that result from continuing business operations while the insured premises is being repaired or replaced due to a physical loss or property damage that was incurred by a covered peril. This might include costs such as the added expense of shipping necessary business supplies overnight rather than at the standard delivery rate to resume operations as soon as possible. Best Practices When Making a Claim If riots, vandalism or civil unrest take place within your community and result in losses for your business, consider these best practices when making a claim: • Report it immediately – Be sure to report the incident right away to the local authorities and consult your broker for immediate claims assistance. • Prevent additional losses – When the loss occurs, try to do everything you can to mitigate the risk of further damages (e.g., boarding up your property’s windows and doors). However, only take these precautions if it is safe to do so. Avoid any mitigation measures that could put you or your employees at risk of injury or fatality. • Beware of waiting periods – Make sure you consider any waiting periods or other deductibles that might apply when making a claim. For example, most business interruption policies are subject to a 72-hour waiting period – meaning that you will not be covered for any loss of income that occurs for the first three days following the incident. • Document all expenses and damages – To ensure the best possible compensation for your loss, be sure to document the full extent of the damages that your business incurred by taking plenty of pictures as evidence. Further, make sure you keep track of all expenses related to the loss by saving receipts and bank statements. For additional coverage guidance, contact Brad Schmid at (763) 5492247 or bschmid@cbizaia.com.
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AASP-MN News
July 2020 | 15
CASH IN ON YOUR MEMBER BENEFITS!
Assure Business Success by Hiring the Right People! The Alliance’s Auto Employee Assessment System, offered in conjunction with Assessment Associates International (AAI), will help AASP-MN members identify employees that not only have the technical skills for the job, but also good motivation, work habits and people skills. How does it work? u Job candidates complete one of two questionnaires: o Service Advisor/Estimator o Technician - including mechanical, body or painter u Candidates are assessed on motivation, attitude, dependability, initiative and other “soft skills.” u Assessments are completed over the internet, at any time of day or night and results are emailed to the employer within minutes of questionnaire completion. u Scores are presented comparing the candidate to current, successful AASP-MN member employees.
u Shops use the information to identify candidates that are a good fit with their work environment. u AASP-MN has validated these assessment tools, demonstrating their accuracy, fairness and legal defensibility. Why use it? u Enhanced employee effectiveness and fit with your work environment. u More good hires and less turnover. u Immediate results - a better bottom line for your shop. u Objective, valid and defensible hiring tool. u It is affordable! AASP-MN member pricing is 50 percent off retail price and starts as low as $15 per assessment. Here’s how: Contact Nate at Assessment Associates International at (952) 854-6551 or nate@aai-assessment.com. For additional information about this or other member benefit programs, contact the AASP-MN office at (612) 623-1110 or aasp@aaspmn.org.
AASP-MN MEMBER BENEFIT PROGRAMS PROPERTY/LIABILITY AND WORKERS’ COMP INSURANCE CBIZ AIA Contact: Brad Schmid 763-549-2247 / bschmid@cbizaia.com CBIZ AIA and United Fire Group (UFG) have created a program for members that includes a special premium discount, exclusive coverage and potential safety group dividend. CBIZ AIA can present quotes from multiple carriers and, as an added bonus, offer members an exclusive 10% discount on their property/liability insurance premiums.
LEGAL CONSULTATION Fryberger, Buchanan, Smith & Frederick 800-496-6789 Members receive free, over-the-phone legal assessment and consultation (some restrictions apply) with an attorney who specializes in the area of law that is the subject of the call.
WEBSITE AND INTERNET MARKETING SOLUTIONS Autoshop Solutions Contact: Tony Mercury 919-267-1731 / tony@autoshopsolutions.com Autoshop Solutions has developed the most cutting-edge marketing platform for AASP members. Really Powerful EMPLOYEE BENEFITS Business Planning Professionals Marketing (RPM) is an all-in-one program that bundles your Contact: Dennis Begley website, pay-per-click, search engine optimization, social media, 612-308-6577 / dennis@begley-group.com and much more! With five levels of RPM to match your budget, Business Planning Professionals will provide AASP-MN members goals, and competition, it’s built to drive your shop forward! with quotes from multiple carriers for life insurance, health Net Driven insurance, long-term care and disability insurance. Contact: Rich Mullen EMPLOYEE VOLUNTARY BENEFITS 877-860-2005, ext. 224 / rmullen@netdriven.com Colonial Life Net Driven is a market leader in website and internet Contact: Deb Ferrao marketing solutions designed exclusively for the automotive 612-600-4135 / deb.ferrao@coloniallifesales.com industry. AASP-MN members who choose Net Driven are or Tracy Bailey eligible for a $500 discount off their 1st year setup fees. 612-801-0139 / tracy.bailey@coloniallifesales.com Dedicated representatives can help members transform INFORMATION PROVIDERS Mitchell1 their benefit package with competitive rates, value added Contact: Mitchell1 Representative services at no cost and complimentary legal document preparation service. Colonial Life has the tools and flexibility 888-724-6742 x 6986 Mitchell1 offers AASP members special savings on Mitchell to create a plan to fit everyone’s needs. 1’s ProDemand, Manager SE & Teamworks products. For more information, contact Customer Service at 888-724UNIFORM & LINEN SUPPLIES AmeriPride Services 6742, ext. 6986. Contact: John Majchrzak Mitchell International 612-670-4034/ majchrzak-john@aramark.com Contact: Mitchell International Representative Discounted pricing to members on rental of uniforms, 800-238-9111 entrance mats, shop rags, etc. Purchases are also discounted. Members receive annual rebate equal to 10% of AASP members receive a 15% discount on any Mitchell RepairCenter TechAdvisor package. Visit ww.w.mitchell.com/ their business with AmeriPride each year. products-services/collision-repair-shop-solutions/cloudCREDIT CARD PROCESSING estimating for more information. Association BankCard Services Contact: Mac Hardin TECHNICAL INFORMATION HOTLINE IDENTIFIX 952-933-2026 / mach@retailfinancialservices.biz 800-288-6220 Competitive rates for AASP-MN members. Terminals and Members enjoy discounted prices on the industry’s #1 printers sold at cost. Monthly rental of equipment is also technical information hotline, Direct-Hit. available.
16 | July 2020
AASP-MN News
AUTO EMPLOYEE ASSESSMENT Assessment Associates International Contact: Nate Page 952-854-6551 / nate@aai-assessment.com Designed to help facilitate and enhance hiring decisions. AASP-MN members receive 50% off retail price, starting as low as $15 per assessment. BUSINESS FORMS/CALENDARS AASP-MN Contact: Jodi Pillsbury 612-623-1110 / jodi@aaspmn.org Discounted rates on printed business forms and calendars. CHECK GUARANTEE SERVICES Certegy Check Services 877-520-2987 Discount rate of .75% to AASP-MN members. Use existing credit card terminal. Fast claim payments. SAFETY COMPLIANCE Complete, Health, Environmental & Safety Services, Inc. (CHESS) Contact: Carol Keyes 651-481-9787 / carkey@chess-safety.com AASP-MN members receive a 20% discount on Safety Data Sheet Management (SDSLinks), Right to Know(RTK)/Hazard Communication program customized for your facility and monthly safety reminders, and other safety, OSHA or environmental assistance. PAYROLL PROCESSING CBIZ Payroll Contact: Carrie Hobrough 612-436-4620 / chobrough@cbiz.com Members receive 20% discount off standard payroll products and services (excluding 401k). BUSINESS COACHING 180BIZ 540-833-2014 / info@180biz.com Members receive a 20% discount on one-on-one sales and management coaching programs (covering financial planning & analysis, strategic marketing, leadership and personnel development) without long-term commitments. Members also receive a 20% discount on monthly sales & management webinars as well as a 20% discount on all 180BIZ advisor training programs.
AASP-MN News
July 2020 | 17
COVER STORY
Continued from page 12
play catch-up when they get out of this,” shares industry consultant and former shop owner Mike Anderson (Collision Advice). “They may need to take on a second job just to rebuild their nest eggs, which will also mean more miles
traveled. People have put off weddings, funerals, birthdays and graduation parties. That means people will be out on the road.” With better news finally hitting the industry, the AASP-MN community is ready to embrace the future with some long-overdue hope and optimism.
As Gleason says, “I feel like we’re all in a good position in Minnesota; we’re ready to get out and enjoy the summer. As everyone here knows, we only get a few months of this glorious weather. It would take a lot to keep us inside and not out enjoying every second of it that we can.”
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AASP-MN News
July 2020 | 19
