By incorporating the word “always” into the theme of Olympic competition, it might read as follows: “The most important thing in the Olympic Games is not to always win but to take part, just as the most important thing in life is not always the triumph but the struggle. The essential thing is not to have always conquered but to have fought well.” This revised theme captures the marathon of challenges that collision repairers face daily and how to measure one’s success. Successfully navigating the obstacles and hurdles to complete the collision repair process properly, at a fair and reasonable cost, while ensuring the business’s ability to thrive is indeed an effort worthy of Olympic gold.
To say that an athlete, especially those who have reached the level of Olympic competition, has struggled, sacrificed and committed themselves to excellence would be a significant understatement. The same can be said for the monumental effort required for a collision shop to adhere to its repair goals. Performing the proper repairs – despite external pressures and doubts – in a safe, ethical and cost-effective manner is the true goal. Yes, crossing the finish line first is crucial, but it cannot be the ultimate objective. If being first is the ultimate goal, the methods on how to get there can become obscured.
To win gold or take a place on the podium, one must first qualify to participate at the highest level possible and strive to
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AASP/MA
Evangelos “Lucky” Papageorg
be the best at doing it right! Just as with other “athletes” in our industry, you must decide whether to compete as an individual or as part of a team. In collision repair, being part of a “team” doesn’t necessarily mean being in a referral or program-shop network. It means you must train differently, select your training staff carefully and expect a more challenging road to success.
An initial decision to be made is whether to compete as an individual or in a team environment. There is much to be said for self-reliance and being in control of one’s destiny. While individual success is admirable, there is something profoundly satisfying about a team’s success, even if it consists of just two people. A team’s triumph feels more impactful and gratifying because it represents collective effort and overcoming individual weaknesses. This sense of achievement is true for your own business team and the broader industry team you belong to as a collision repairer. High-fives are more meaningful when you have someone to share them with!
The Olympic Games often showcase inspiring backstories of athletes overcoming personal challenges to compete at the highest level. Some had physical challenges while others had challenges that stem from social or economic backgrounds.
continued on pg. 8
Jeff
Affiliate
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617-574-0741
Membership Application 2024-2025
P.O. BOX 850210
Braintree, MA 02185
Phone: 617-574-0741
Fax: 973-235-1963
Email: admin@aaspma.org
Please complete this form and return to our office via mail, email or fax with your dues payment. Thank You!
As a member in good standing, your shop WILL BE listed on our website Click here � if you do not want your shop listed on our website map for potential customers to find you. If you have any questions about this benefit, call (617) 574-0741, ext. 1.
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I hereby make this application for membership with the Alliance of Automotive Service Providers of MA (AASP/ MA) for membership dues 2024-2025 as provided for in this contract.
*Membership Dues are for a twelve-month period commencing on your anniversary month of membership.
12/23
AASP/MA’s Papageorg Lends a Hand to ABAT
AASP/MA Executive Director Lucky Papageorg was invited to take part in the Auto Body Association of Texas’ (ABAT) annual Texas Auto Body Trade Show in July. Each year, ABAT’s show features the BIG SHOTS competition where attendees can test their skills in the areas of estimating, welding, painting and paintless dent repair. ABAT Executive Director Jill Tuggle invited Papageorg to serve as a judge for the estimating competition.
The BIG SHOTS estimating competition team. From L-R: Taylor James (CCC Intelligent Solutions), Lucky Papageorg, ABAT President Burl Richards, Davis Richards (Park Place Bodywerks; Dallas, TX), first place winner Orlando Hernandez (Berli’s Body and Fine Finishes; Pflugerville, TX), Chad Kiffe, manager (Berli’s Body and Fine Finishes, Pflugerville, TX), third place winner Philip Glass (Park Place Bodywerks, Dallas, TX) and second place winner Kent Deaver (Berli’s Body and Fine Finishes Pflugerville, TX).
[EXECUTIVE DIRECTOR'S] MESSAGE
continued from pg. 6
Whether overcoming severe asthma to become a top sprinter or training in a country with minimal resources to join a gold medal-winning team, all athletes deserve admiration for their perseverance and unwavering focus on their goals. Striving to be the best and holding one’s head high, even after setbacks, is a testament to their dedication.
Collision repairers and the collision repair industry have shown the ability to become champions – not merely by financial success but by contributing significantly to their communities and the overall economic success of states, regions and the country. We must maintain our focus on our goals while upholding business ethics and morals. This creates dilemmas as we face pressures that could impact our lives, our employees and vehicle owners. Do we give in to doubts and external pressures, or do we strive for success? What compromises, if any, are acceptable to achieve success? Just as athletes who resort to using performanceenhancing drugs face disgrace, compromising our integrity for short-term gains is not worth the potential long-term damage. Important decisions must be made if you aspire to a gold medal or a spot on the podium. Do you want to be an individual success story or part of a team that shares in the success? What sacrifices are you willing to make for yourself and your team? Will you be able to look back proudly at your achievements, or
will you constantly worry about discovering procedural flaws that could tarnish the team’s reputation? Did you give your best, or did you yield to negativity and merely go along to get along, regardless of the consequences?
If you have not yet chosen to be a TEAM player by joining the ALLIANCE, I hope you consider doing so soon. The Olympics Summer Games that we just witnessed come around every four years, but the training and focus on goals must start now. With rapid changes and increasing complexity in our industry, it’s essential to get focused, participate, work through struggles and fight well to avoid a “DNF” (did not finish) designation next to your business name.
Become an Olympian by joining the ALLIANCE team, as we strive to be the best we can be by achieving and retaining a spot on the podium for years to come. Remember the Olympic Spirit: PARTICIPATE IN THE STRUGGLE AND FIGHT WELL!
See the application on page 7.
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Keeping it Spotless: The Importance of a Clean Room for Aluminum Repairs
When performing aluminum repairs, preventing crosscontamination is crucial. Aluminum is highly sensitive to contamination, especially from steel. If you don’t prevent steel dust from settling on aluminum-intensive vehicle surfaces, galvanic corrosion will occur and weaken aluminum components. When aluminum exterior surfaces like the hood, roof or door panel are exposed to steel dust, galvanic corrosion can damage a paint job. Aluminum dust also is explosive when exposed to a spark.
A clean room minimizes the risk of cross-contamination by providing a controlled environment free from airborne dust, metal shavings, and other contaminants. This ensures that the aluminum repair process is conducted in optimal conditions, prevents surface damage and helps maintain the integrity of the repair as required by OEMs.
The RAE Body Repair Station features a curtain that has special light reflection as well as fire approved properties. This will isolate your aluminum work area from nearby bays. Accepted by leading OEM certified collision repair facility programs, the body repair station features an e-glass curtain that meets fire retardation standard EN-13501-1 (required by OEM certification programs across the globe). A built-in viewing window meets standards for eye protection of workers outside the aluminum bay. LED lighting helps provide ideal lighting conditions when performing
intricate repairs, while a specially-coated welding curtain separates and protects the surrounding area from the aluminum bay. Please contact Reliable Automotive Equipment to learn more about how we can help you perform aluminum repairs safely, efficiently and cleanly. Visit Booth #32135 in the South Upper Hall at SEMA for more information on our full line of collision repair equipment, products, training, service and more.
The RAE Body Repair Station isolates your aluminum work area from nearby bays.
Voices Matter: CIC Tackles Industry Concerns
“Your voice matters.”
Collision Industry Conference (CIC) Chair Dan Risley conveyed this strong message in his opening remarks during the July conference held in Denver, CO. His encouragement set the tone for a day filled with enlightening discussions that explored technologies, questioned the intentions of proposed federal Right to Repair legislation and unleashed a chorus of alarm and concerns over the asTech/GEICO standardized pricing agreement, which had just been announced the previous day.
First to respond to Risley’s urging to take advantage of open mic time was Bob McSherry (North Haven Auto Body; North Haven, CT), who sought answers from asTech representatives about news of the aforementioned agreement. “Can you please explain to me why you – a vendor that I use – would enter into a standardized pricing agreement on behalf of the customer, which is me?” He proceeded to call it a “special kind of stupid. I’ve been a long-time user, and I can tell you that comes to an end when I go back to work tomorrow. If someone can enlighten me, I would really like to know why you would enter into an agreement on my behalf with an insurance carrier. It absolutely freaking baffles me.”
Responding for asTech was Jason Vilardi, vice president of sales, insurance and estimatics relations, who claimed the agreement would not change their position to do safe and proper repairs and that “we did this for our customers to streamline
everything from them to make the process easier. We didn’t really take this as being a massively negative thing; we got a top carrier who most people would say they’ve struggled with, and now we brought them in on what we do, how we do it and – in our minds – are willing to almost step up and actually cover more OEM scans than they every previously did.” He further claimed that asTech customers “should not feel a change in the reimbursement process.”
Society of Collision Repair Specialists Executive Director Aaron Schulenburg brought forth an “elephant-in-the-room” question which he directed to Vilardi: “Jason, I don’t want to put words in your mouth, but the answer that I heard was that they endorsed your product…what I’m curious about is, was the standardized pricing agreement predicated on the endorsement of your product? So, was this standardized pricing a result of the endorsement?”
Vilardi evaded, “A customer is still in the same position they were beforehand. They’re not making less money from us on a scan today than they made yesterday, although the price is less. The cost is less, so they will be made whole in their numbers.”
Mike Anderson (Collision Advice) came forward to voice concerns about “the precedent it sets for taking the collision repair professional out of the equation as it’s my understanding that the asTech/ Repairify software is going to determine whether an aftermarket scan tool suffices or an OEM scan tool. They're making that determination, not the shop, not the consumer, not the OEM certification program, but their software device is, if that’s accurate.
“It disregards anything that engineers from the OEMs have told us in regard to OEM scan tools,” Anderson continued. “As someone who has the blessing and opportunity to work with a lot of OEMs, I can stand here, 1,000 percent without hesitation or reservation, and say there is a huge difference between an aftermarket and OEM scan tool.”
Conversations brought other concerns to light. The Parts and Materials Committee brought Schulenburg, Wayne Weikel (Alliance for Automotive Innovation) and Bob Redding (Automotive Service Association) to the stage to dive into the intentions of the proposed REPAIR Act, expressing that this legislation is less about independent repairers having access to information to fix vehicles properly and more about protecting parts choices.
Schulenburg used what the CAR Coalition says about the proposed bills as an example of the real intentions behind the bill and those championing it. They define its goal as being to ”protect the ability to get the parts, tools and information to choose aftermarket parts. That's different from making sure that consumers have the right to choose a repairer who has the parts, tools and information to fix cars. That’s a very specific purpose. If you read through it,
Collision Industry Conference (CIC) Chair Dan Risley
Jason Vilardi, asTech
SCRS Executive Director
Aaron Schulenburg
you start to understand where the focus is. The focus is on protecting the choice of a part type rather than necessarily protecting the type of repair or protecting safety.
The REPAIR Act doesn’t mention safety anywhere. It's not a bill that talks about consumers having the right to choose or not be influenced or be limited or things along those lines. So when you start looking at the drivers behind that and look at groups like the CAR Coalition, you have lots of aftermarket parts companies, alternative parts platforms, insurance companies and things along those lines. So in my opinion, both bills are very much parts acts; one is about protecting the right to choose aftermarket parts, and the other is about limiting intellectual property protection for OEMs on patents, and they're really both focused on parts initiatives.”
Weikel added that a lot of time has been spent up at Capitol Hill by the other side to present the bill as “Right to Repair, but they don’t actually represent repairers. The REPAIR Act has been framed to present this as the ability to complete a repair when that’s not really what it’s about.”
Schulenburg hopes “conversations can shift from simply preserving a consumer's choice for one type of part, to a consumer having the ability to choose where they want to have their vehicle repaired, how they want to have it repaired and with what type of parts they want it repaired, whether that means they want an original part or an alternative part, whether they want to go to an insurance preferred shop or an OEM-preferred shop. It should be focused on making sure that consumers
are entitled to safe, proper and thorough repairs.”
“What Aaron is saying is very important,” stressed Redding. “When we go into the Congressional Office about our position and tell them we don’t support these bills as they’re currently drafted, their response is ‘I don’t understand that; we’re doing this to help you.’ They don’t understand all the dynamics of these various industry sectors. When you explain it to them, they get it, so we're trying to shift this debate to if you are going to do a repair bill, that affects all repairers –mechanical and collision – it needs to do what we want it to do.
“It’s difficult to put the toothpaste back in the tube, so it’s critical we get this bill right,” he added.
For the third time on the CIC stage, discussion continued about the SCRS blend study, but this time, the conversation focused on the "significant amount of changes" that are now taking place with shops' billing and insurance claim practices. Schulenburg was joined by a panel of technical experts from some of the leading paint manufacturers including Jeff Wildman and Ralph Lieja (BASF), Mark Jahnke (Axalta) and Ryan Brown (AkzoNobel) who shared their respective companies’ processes for developing their paint systems bringing to light that variations and variables that need to be considered, which verifies the importance of having different conversations in order to arm the repair planner with the right dialogue to have with the bill payer.
Michael Lastuka of State Farm and Darrell Amberson (LaMettry’s Collision; MN) were also on hand to contribute some poignant observations from the perspective of both insurers and repairers. Lastuka expressed agreement about having the right conversations, stating that “knowledge is power” and stressing that shops should take the time to communicate.
Danny Gredinberg (Database Enhancement Gateway) led the Estimating and Repair Planning Committee’s critical “on-the-spot evaluation” discussion “because no two accidents, no two repairs are identical to each other.”
Using CCC Estimated Worktime Premise as an example, Gredinberg pointed out, “There's a lot of details in there, especially the list of operations that are commonly not factored or included in any
of the published labor times here. And when you go down this list of operations, there are nearly 43 Estimated Worktime Operations just in this section alone on the body side. That's not factored into any published labor time.”
Communication is key in the process, and it’s a fact-based conversation, not an emotional one, Gredinberg suggested. “We need to make sure the right people are getting that communication – our repair planners, estimators, CSRs, people on the front end who can identify these challenges or these potential things that are going to blow up in the middle of the repair process so we can have the right materials, we can have the right supplies, we can have the right consideration, so you can have the right discussion with the person who is going to reimburse for that bill, whether it be the customer or the bill payer itself.”
The Future Disruptions Committee panelists sought answers to the question: How can automation be used to make auto body facilities more efficient?
Darrell Amberson foresees it being used for the “monumental task” in administrative work due to the trend of needing to provide “more documentation to prove what we're doing in terms of the repair process to protect ourselves and to offer verification to the insurers. Half our staff essentially does admin support work, planning, organizing, orchestrating, interacting with customers that isn’t part of directly fixing the car, so there would be huge value if there were things that could improve that efficiency. We really haven’t seen a lot of that.”
“What is it going to take to get automated refinishing, for example?” moderator Trent Tinsley (Entegral) inquired. “There are some products out there right now that automate welding. How far away are we from doing that? They can do some basic things now; I saw demonstrations at SEMA. They can do some welding operations on a wheel. But how far away are we from automating those sorts of things in the shop? I don't think we're anywhere near where we could be.”
The next CIC meeting will be held November 5 in Las Vegas during SEMA 2024. Visit ciclink.com for more information.
Bob Redding (Automotive Service Association)
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“Gary, I wanted to thank you for your continued support for my latest purchase of the Autel ADAS Calibration system. You provided the training we needed and most importantly you provided a direction when calibrations needed a little more technical advice. I’ve had the good fortune of finding you many years ago to supply my necessary computer scan tools to stay current and relevant in this everchanging environment.
Your extensive technical training background has led you to a great business opportunity to provide a valuable needed service that many garages and body shops don’t provide. Most cars leave body shops and repair facilities not getting the necessary Calibrations. The more I know the more I see the opportunity to make cars safer for everyone. One of the lessons I’ve learned is that business owners don’t tell other businesses where their Honey hole is. Buying from you with your training and after purchase support is a honey hole they don’t have to miss out on.”
I use the analogy of running a business is like being a captain of a ship. My job is steering the ship and plugging the money holes all while navigating into calm profitable waters. After 36 years in business, I can say buying from you and attending many of your Technical Training classes has directly facilitated my continued success in the Auto Repair business.
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Collision Centers - Contact AATI Today
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A vehicle is not completely repaired unless it has been recalibrated. This statement is not only true in today’s world where just about every vehicle contains some ADAS technology; it’s also why ADAS Diagnostic Solutions has grown so rapidly in just under two years’ time.
ADAS Diagnostic Solutions was born under the Fuller Automotive umbrella. The Fuller family has been at the forefront of automotive repair for 110 years and today operates the Auburn-based Fuller Automotive & Tire, Fuller Collision Center and their most recent venture, ADAS Diagnostic Solutions, which opened in 2022 and has since picked up so much speed that the calibration business has already outgrown its original location.
“Back in 2018, we began exploring ADAS, attending I-CAR classes and taking a full interest in it,” relays ADAS and Diagnostic Specialist Mike Ambrosino, who has been working with the Fuller Automotive team since 2009 as an estimator before he absorbed his current role. “When COVID hit, we decided to invest in some targets and began doing some calibrations in late 2020. In February 2021, we purchased our first Autel calibration system and began doing in-house calibrations at Fuller.”
Shortly thereafter, they started picking up jobs from other area shops that lacked the resources to perform calibrations. That is when they “discovered there was a huge need for other shops, to not only get calibrations done, but to have this work performed in a timely manner.” According to Ambrosino, dealerships were scheduling a week or two out. “We were able to provide this resource and fill that gap.”
In October 2022, ADAS Diagnostic Solutions officially opened its doors. Less than two years later, they moved to a new location, just next door at 3 Jerome Avenue, Auburn. The new building is three times the size of the original, allowing ADAS Diagnostic Solutions the space to service more vehicles. Because growth is happening so rapidly, they are working on additional locations to serve the Milford, Framingham and Marlborough areas. “We are really excited about those opportunities,” shared Ambrosino.
ADAS Diagnostic Solutions is committed to making sure their customers receive supportive documentation, including photos and screenshots of the completed calibration work, which is necessary for collecting proper compensation. “That’s what differentiates us from the dealerships. If you go to the dealership for calibrations, you’ll get an invoice with a single line that says the calibration was completed. When shops come to us, they get all the photos and supporting documentation. You’ll be able to confirm that the calibration was done and view the results of that calibration. You’ll also get service the same day or the next day. Very rarely do we push calibrations out more than one day.”
In addition to calibration work, they provide many other
solutions including module programming, airbag system diagnosis, tracing electrical faults, and performing wire repair. ADAS Diagnostic Solutions has built strong relationships with their customer base as many shops bring their cars to them post repair to “make sure that everything is working properly electronically, calibration-wise and scan-wise. We confirm that everything is good with the vehicles, so when they return it to their customers, they can rest assured it’s a good repair all around.”
They’ve also invested in two mobile units so they can bring the calibration services to their customers. “If a shop has qualifying space, a level floor and lighting, we can do the calibrations at their facility. We also offer a valet service where we will come to the shop, take the vehicle back to our facility to perform the work and then drive it back to the shop.”
Their commitment to serving the industry and providing information is what’s helped them achieve so much success in a short time. They started with one calibration system and now have four, two of which are mobile, and their staff has grown to five full-time employees and four part-timers.
Ambrosino goes back with AASP/MA since his earliest days at Fuller Automotive, as the company has always been active with the Alliance. ADAS Diagnostic Solutions is a Silver level sponsor of the association’s Vendor Affinity Program (VAP) and is an active participant at AASP/MA events.
“We value what the Alliance does for the industry, fighting for critical issues like the labor reimbursement rate and providing education to body shops. We value education. We constantly take I-CAR classes and travel out of state to attend classes, including at the I-CAR Training Center in Illinois. We think it’s awesome that AASP/MA works hard to educate shops and to try to bring everyone on the same page.
“We also value the opportunity to network with body shops at AASP/MA events, whether or not they are existing customers. It’s great to have the opportunity to talk about the industry,” states Ambrosino.
From L-R: Mike Ambrosino, John Knurowski, Ayanna Cimochowski, Alexis Kennedy, Alex Bell, Dylan Tremblay and Brandon Tremblay.
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Cybersecurity Concerns:
FORTIFY YOUR DATA DEFENSES
Protecting your shop’s assets requires forethought and preparation, and these days, data is often considered more valuable than gold. Headlines over the summer featured a cyberattack against CDK Global – used by 15,000 dealerships – which led the software to be shut down for weeks, causing parts supply disruptions across the country. Although CDK’s situation has been resolved, the data breach raises concerns about what level of risk cybercriminals pose to automotive businesses.
A 2023 report conducted by CDK (bit.ly/CDKreport2023) indicated that 17 percent of dealers experienced a cyberattack in the previous year. And cyberattacks prove increasingly costly. Citing research from ransomware specialty company Coveware, the report indicated, “The average cybercriminal financial payout dramatically increased from $44,000 in 2019 to $740,144 in 2023.”
So, how can collision shops protect themselves and their
28 September 2024 New England Automotive Report
customers from cybersecurity threats?
First and foremost, shop owners need to understand that cybersecurity is a concern. “Don’t be naive; many people believe this can never happen to them, but it CAN happen,” insists Mike Anderson (Collision Advice). “It has happened to large shops, and it has happened to small shops. You have to be prepared.”
Shops can take many steps to “fortify their defenses against cyber threats,” according to Brandon Laur (CCi Global Technologies), who recommends “implementing robust security measures, including regular software updates, firewalls and advanced threat detection systems to protect sensitive data. Employee training is equally vital, with regular sessions on recognizing and responding to threats like phishing and social engineering.”
David Willett (Spark Underwriters) agrees and points out that this year’s Presidential election necessitates increased diligence
since cybercriminals are apt to play on people’s emotions by hiding attacks within clickbait links. “You and your employees should be scrutinizing emails now more than ever. It’s better to receive multiple requests instead of clicking on something suspicious.
“One thing that shops often overlook is the use of personal devices on their shop’s private Wi-Fi,” he adds. “Shops may feel protected because they set up a separate network for customers, but when they allow their employees to use personal devices on the private network, they’re opening themselves up to attack. The shop’s Wi-Fi should be used only for shop devices to keep it secure. Phones are typically our least protected personal devices, so I suggest installing a VPN to enhance phone security.”
Some other steps that shops should implement include “Maintaining comprehensive and regular backups of all critical data. Collision shops should also develop and routinely test disaster recovery plans to ensure quick restoration of operations in case of an attack,” Laur explains, noting, “The CDK incident highlights the need to assess and monitor the cybersecurity practices of vendors and partners. Collision shops should require their partners to adhere to stringent security standards to prevent vulnerabilities from being exploited through third-party connections.”
Willett compares the CDK scenario to what would happen if an information provider, like CCC or Mitchell, suffered a similar attack. “They have a lot of code and are involved with multiple businesses, so shops would have a lot of exposure if they were hacked.”
Maintaining regulatory compliance is imperative. “Collision shops should stay informed about legal requirements related to data protection and ensure timely reporting of breaches to relevant authorities,” Laur stresses. “Having a detailed and tested incident response plan in place is vital. This plan should outline steps for identifying, containing and mitigating the impact of a breach. It should also include communication strategies for informing customers and stakeholders about the incident.”
Anderson agrees, likening it to a fire drill. “We have fire drills to make sure everyone knows the protocol to follow in case of an emergency. Likewise, you should have a conversation with your IT department to determine how to handle a potential attack. You need to know what to do in advance. Is your server in the building? Should everyone shut down their devices immediately? Who is responsible for performing which actions? Knowing the protocol in advance just might help you act quick enough to avoid having to pay a ransom. Of all the shops I know that have been hacked, all except one had to pay the ransom; one paid out $13,000 in bitcoin!”
He urges shops to verify that their backup servers are working properly on a regular basis, to educate staff on safety precautions and to implement dual authentication, using two methods to verify that someone is who they claim to be before accessing sensitive information and systems. “It’s also important to make sure that shops have the proper insurance coverage to protect their business if something does happen,” Anderson advises.
While Willett agrees that having the right business insurance is a key component to protecting one’s business from any type of tragedy, including a cybersecurity attack, he cautions, “Having a larger policy doesn’t mean you won’t be attacked; in fact, it may make you a larger target! Shops should absolutely make sure they have adequate coverage – and I encourage all business owners to conduct a review of potential exposures and how their policies protect them annually at a minimum – but insurance is not on an island by itself; it should work cohesively with your risk management plan.”
Engaging in an open discussion with one’s IT resource and insurance carrier can highlight areas of exposure and help identify gaps that need to be filled. Referencing 23 NYCRR 500, a list of cybersecurity requirements for financial institutions (available at bit.ly/23RR500), Willett suggests using this as a benchmark to determine how one’s business compares; however, he emphasizes that shop owners should not be spending a significant amount of time on these concerns. “You should be relying on experts in these matters to service your shop’s needs.”
Although shops should lean on cybersecurity professionals to ensure their ramparts are secure, it’s beneficial to understand where an attack may come from. “Collision shops should be aware of several common forms of cyberattacks that could target their operations,” Laur says. “Understanding these threats can help in implementing effective security measures.
“Phishing is one of the most prevalent forms of cyberattacks, where attackers use fraudulent emails or messages to trick employees into revealing sensitive information, such as login credentials or financial information,” he continues, reiterating the need to train staff to recognize and support suspicious email.
Shops should also be on the lookout for ransomware and malware attacks. “Ransomware attacks involve malicious software that encrypts the victim's data, rendering it inaccessible until a ransom is paid. Regular backups and having a robust incident response plan can mitigate the impact of such attacks,” Laur offers. “Malware encompasses various types of malicious software, including viruses, worms and spyware. These programs can disrupt operations, steal data or give attackers control over the shop's systems. Installing and updating antivirus software and conducting regular scans can help protect against malware.”
He also shares thoughts on some other common types of cyberattack: “Denial-of-Service (DoS) and Distributed Denialof-Service (DDoS) attacks, aimed at overwhelming networks, can be mitigated with firewalls and traffic monitoring. Insider threats, whether intentional or unintentional, can be controlled through strict access controls and user activity monitoring. SQL injection attacks, which exploit database vulnerabilities, can be prevented by securely coding web applications. Credential stuffing, where attackers use stolen credentials, can be reduced with strong, unique passwords and multi-factor authentication (MFA). Social engineering attacks manipulate individuals into divulging confidential information and can include pretexting, baiting and tailgating. Regular employee training on security awareness is crucial to prevent these attacks.”
Anderson also mentions how social engineering can be used via phone call or even social media. “Cybercriminals can hack your information without accessing your computer as well. You might receive a call asking you to transfer funds from one account to another, or hackers may use your image to create a fake Facebook account with nefarious intentions. There are many ways they can fake your voice and your image to gain access to your information, so we have to be wary anytime someone is asking us for sensitive data, especially financial information.”
What are some signs that shops can look out for that may indicate a cyberattack? “Signs of a cyberattack include unusual account activity, such as unexpected login attempts or multiple failed logins indicating brute force attacks,” Laur warns. “Strange network traffic, like high traffic from unknown IPs or unexpected
data flows, may signal data exfiltration. Slow system performance can indicate malware or a DoS attack. Unexpected pop-ups or ransom messages suggest adware or ransomware infections. Unauthorized software installations or system changes without user consent are red flags. Unusual file changes, disabled security software and phishing indicators like suspicious emails are also signs. Additionally, strange program behavior, unusual account actions, access log anomalies and alerts from monitoring tools can all indicate a potential cyber threat.
“Collision shops can safeguard against cyberattacks through comprehensive measures,” he adds. “These include ensuring robust software and systems security by regularly updating antivirus software, deploying firewalls, using intrusion detection systems and maintaining software patches. Network and infrastructure security involves segmenting networks, securing Wi-Fi with strong encryption, regularly backing up data and encrypting sensitive information. Employee training is critical with regular cybersecurity sessions, phishing simulations and clear policies on passwords and sensitive data handling. Implementing multi-factor authentication, role-based access controls and conducting regular access audits enhance access controls and authentication. Cyber insurance provides financial protection against incidents like data breaches and ransomware attacks. Incident response planning is vital, involving the development of detailed response plans, regular drills and establishing response teams. Lastly, ensuring vendor and partner security by assessing their cybersecurity practices and monitoring third-party access helps prevent unauthorized breaches through external connections.”
Of course, no one can safeguard against every scenario, and as businesses become more adept at protecting against common cybersecurity risks, cybercriminals grow more innovative in their attacks. If a shop suspects that they are under attack, “immediate actions are crucial,” Laur emphasizes. “They should contain the breach by disconnecting affected systems and disabling compromised accounts to prevent further damage. Preserve evidence by documenting details like the attack time and affected systems. Activate their incident response plan promptly, notifying their response team and relevant stakeholders. Next, assessing the attack's scope helps determine affected systems and the attack type. Mitigating the threat involves removing malware, applying patches and enhancing access controls.
“Communication is key,” he reiterates. “Notifying affected parties and authorities and complying with breach notification requirements is necessary. During recovery, restoring systems from backups and monitoring for residual threats with Intrusion Detection and Prevention Systems is critical. Post-incident, conducting a thorough analysis, updating security measures and enhancing employee training on cybersecurity ensure readiness for future incidents.”
The idea of experiencing a cyberattack may be frightening and even a bit overwhelming, but preparing for the possibility of this type of scenario could be essential to your business’ survival. “It’s not going away,” Willett stresses as he urges shops to do their due diligence ahead of time in order to shield their shops.
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Stay Ahead of Legal Deadlines: Essential Guide for Auto Body Shops - Part 2
In last month's article, (see bit.ly/NEAR0824) we delved into the various claims auto body shops might face, such as negligence, breach of warranty and consumer protection claims. We discussed the importance of understanding the statute of limitations for each type of claim and provided practical strategies to mitigate risks.
In this second half, we'll explore the claims auto body shops might need to pursue to protect their interests and ensure fair compensation. From dealing with unpaid claims from insurers to handling breaches of contract, we’ll outline key legal deadlines and offer tips on proactive management. Let’s dive in and empower your shop to stay ahead of legal challenges.
II. Potential Claims Auto Body Shops Might Make
Auto body shops not only need to defend against claims but also may need to pursue claims to protect their interests and ensure fair compensation. Understanding the potential claims a shop might make and the associated legal deadlines is crucial for maintaining financial stability and operational integrity.
A. Claims Against Insurers for Unpaid Claims
Statute of Limitations: Typically three years (varies by policy terms)
Explanation: Sometimes, after completing repairs, insurance companies may deny claims or delay payments for various reasons. Shops may need to file claims against insurers or others to recover the costs of services provided.
Strategies:
• Understanding Policy Terms: Thoroughly review and understand the terms of the insurance policies you work with to anticipate potential disputes.
• Timely Follow-Ups: Promptly follow up with insurers on unpaid claims to avoid missing the statute of limitations.
Relevant Law: The specific statute of limitations can vary by policy, but it typically falls under general contract law (G.L. c. 260, § 2).
B. Breach of Contract
Statute of Limitations: Six years (G.L. c. 260, § 2)
Potential Parties: Customers, suppliers, contractors, business partners, insurance companies (for shops in insurer programs)
Examples: Failure to fulfill contractual obligations, unpaid claims from insurer programs
Explanation: Breach of contract occurs when one party fails to honor the terms of an agreement. This can involve customers not paying for services, suppliers failing to deliver parts or insurers not
paying for repairs under shop-insurer agreements.
Strategies:
• Detailed Contracts: Ensure all agreements are detailed and clearly outline the obligations of all parties involved.
• Regular Follow-Ups: Keep track of contract fulfillment and follow
up on any breaches promptly to protect your rights within the statute of limitations.
C. Indemnification Claims
Statute of Limitations: Three years from accrual (G.L. c. 260, § 2A)
Potential Parties: Parts manufacturers, suppliers, contractors
Examples: Faulty parts causing damage
Explanation: Indemnification involves one party agreeing to compensate another for certain costs and damages. For example, if a faulty part provided by a supplier causes damage, the shop might seek indemnification to cover the repair costs.
Strategies:
• Supplier Agreements: Ensure that contracts with suppliers include indemnification clauses to protect against faulty parts.
• Quality Checks: Implement thorough quality control procedures to identify and address issues promptly.
D. Contribution
from Joint Tortfeasor (another responsible party)
Statute of Limitations: One year after final judgment (G.L. c. 231B, § 3(c))
Potential Parties: Other businesses or individuals involved
Examples: Joint liability for damages
Explanation: If multiple parties are responsible for causing damage or injury, a shop may seek contribution from other liable parties to share the costs. This is common in cases where more than one business or individual contributed to the damage.
Strategies:
• Proper Documentation: Maintain detailed records of incidents and interactions to support claims for contribution.
• Joint Defense Agreements: Consider joint defense agreements when facing shared liability to streamline the legal process.
E. Claims for Property Damage
Statute of Limitations: Three years (G.L. c. 260, § 2A)
Potential Parties: Contractors, third parties
Examples: Damage during renovations
Explanation: Property damage claims can arise when contractors or third parties cause damage to the shop's property. This might occur during renovations or due to negligent actions by delivery services.
Strategies:
• Detailed Contracts: Ensure contracts with contractors include clear terms regarding liability for property damage.
• Regular Inspections: Conduct regular inspections to identify and address potential damage early.
F. Negligence/Tort Claims
Statute of Limitations: Three years (G.L. c. 260, § 2A)
Potential Parties: Suppliers, contractors, third parties
Examples: Damages caused by third parties
Explanation: Negligence claims arise when a third party's actions cause harm to the shop or its property. This can include suppliers delivering defective parts or contractors performing substandard work.
Strategies:
• Clear Agreements: Draft clear agreements that outline the responsibilities and liabilities of all parties involved.
• Proper Documentation: Keep detailed records of all interactions and transactions to support any potential claims.
III. Strategies for Protecting Your Shop
Proactively managing potential claims and adhering to legal requirements can significantly reduce risks and enhance the operational efficiency of your auto body shop. The most prepared shops that I see are the shops investing in industry memberships such as AASP/MA.
A. Understanding and Monitoring Statutes of Limitations
Importance of Timely Action: Acting within the statute of limitations is critical to preserve your legal rights. Missing these deadlines can bar you from seeking redress or defending against claims.
Regular Review of Potential Claims: Periodically review all potential claims and ensure timely action is taken. Keep a calendar or tracking system for all legal deadlines.
Standard Documentation: Utilize resources like Coverall Law's Forever Forms to ensure your documentation is comprehensive and up to date, providing extended protection for your business.
B. Implementing Comprehensive Documentation Practices
Record-Keeping for All Transactions and Repairs: Maintain meticulous records of all business transactions, repairs, customer interactions and communications. This documentation is vital for defending against claims and pursuing legal actions.
Detailed Contracts and Agreements: Ensure all contracts and agreements are thorough and clearly outline the responsibilities and obligations of all parties involved. This reduces the likelihood of disputes and strengthens your legal position.
C. Ensuring Proper Insurance Coverage
Necessary Insurance: Ensure your shop has adequate insurance coverage, including general liability, property insurance and worker’s compensation;providing a safety net against various potential claims. continued on pg. 34
continued from pg. 33
Regularly review and update your insurance policies to ensure they adequately cover your current risks and operations.
D. Maintaining Compliance with Legal and Safety Standards
Ensure your shop complies with all relevant state and federal regulations to avoid legal issues and fines. Conduct regular safety training sessions for employees, and perform periodic safety audits to identify and mitigate risks.
Follow OSHA guidelines and Massachusetts safety regulations to maintain a safe and compliant workplace.
E. Effective Communication with Stakeholders
Maintain open and transparent communication with customers and suppliers to prevent misunderstandings and disputes.
Address complaints and claims promptly to resolve issues before they escalate.
Implement best practices in customer service and dispute resolution to enhance customer satisfaction and minimize legal risks.
By understanding the various claims auto body shops might make and implementing effective strategies for protection, shop owners can better safeguard their businesses and ensure timely compensation for their services. Much of the above can be addressed through use of Coverall Law’s Forever Forms and a membership with AASP/MA.
Conclusion
In the auto body repair industry, understanding and adhering to statutes of limitations is vital for protecting your business from potential claims and ensuring you receive timely compensation for your work. By familiarizing yourself with the key legal timeframes and implementing robust strategies, you can minimize risks and maintain a smooth operation.
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Here’s to 241 years of combined service excellence
This year, as Albert Kemperle Inc. celebrates its 83rd anniversary, BASF also celebrates its 158th anniversary. We are proud of our decades of partnership with BASF and years of serving the auto paint and body industry together. Kemperle’s founders would be proud of this relationship and the growth their company has experienced because of it.
Today, as we look forward to many more decades of service to our customers, we find ourselves filled with gratitude. The creativity, hard work, and sense of responsibility of the people working for our two companies have made us what we are today.
Regularly review potential claims, maintain comprehensive documentation, and ensure your insurance coverage is up-to-date. Additionally, adhere to legal and safety standards, and communicate clearly with all stakeholders to prevent and resolve disputes effectively.
By taking these proactive measures, you are not only protecting your business but also fostering a trustworthy environment for your customers and partners. Stay informed, stay vigilant, and continue to strive for excellence in your operations.
Running an auto body shop comes with its challenges, but by equipping yourself with the right knowledge and tools, you can navigate the complexities of the legal landscape with confidence. Stay proactive and protected, and your efforts will pay off in a thriving, resilient business. Keep up the great work, and here's to your continued success!
For further help, please contact me or a member of our team and see page 7 to learn how to join the Alliance.
Coverall Law Managing Attorney Sean Preston finished in the top of his law school class at the historic Howard University School of Law in Washington, DC after serving in the United States Army. He went on to excel in business and legal strategy, serving some of the world's most recognizable brands in neighboring industries. Sean recently returned from Berlin, Germany with his family (where he served in Rolls-Royce's General Counsel function) and today resides in Wareham, MA, where he helps to oversee and meaningfully lead efforts in the region for Coverall Law. He can be reached at (508) 635-5329 or via email at spreston@coveralllaw.com
