Winter Conditions Ahead

Risk prevention advice for the cold weather months.

As Canadians, we are all well aware that winter brings with it a unique set of risk challenges. Help ensure that all areas of your operation are ready for the winter ahead before it arrives. A walk-through of the dealership’s property and premises is suggested to help identify and correct any areas that can pose a hazard to your employees, customers, inventory, or buildings. Common incidents to avoid can include slip and fall incidents from slippery roads or walkways, potential for burst pipes, and injury or damage from falling ice or snow.

Winter tune-up of dealership vehicles:

Winter tune-ups are, in general, also an important aspect of risk prevention and can help guard against the types of claims common to cold weather months.

This time of year is busy for auto dealers as you urge your customers to bring their vehicles in for winter tune-up maintenance and snow tires. We also urge dealers to perform a winter tune-up of in their own vehicle fleet(s). Since your fleets represent your business, and transport your customers and staff, it is vital that these vehicles are in the best possible condition and ready for winter. Below are a few tips:

• Snow tires are highly recommended (and in some provinces mandatory) for all company use vehicles including courtesy or loaner vehicles.
• During winter months, it is especially important to ensure fluid levels are topped-up and windshields, mirrors, headlights, and taillights are kept clean and clear.

Clear and clean walkways:

Winter can prove to be unpredictable and extremely hazardous for pedestrians and vehicles. Keeping roadways, sidewalks, and parking lots clear and free of ice and snow at all times can seem to be an impossible task.

• We urge dealerships to consider contracts with outside snow removal companies, whenever possible.
• If you are considering an outside source, it is important to ensure that the company you select carries appropriate insurance coverage and limits of liability. Contact your insurance broker for further advice in this regard.
• If you manage your own snow clearing and de-icing:
  • All snow removal, including salting and sanding efforts, should be documented for possible defense purposes in the event of an incident on your premises.
  • Stock-up on the necessary supplies in case of a shortage this winter, as has happened in the past.

Building temperature:

Areas such as vestibules, shipping and receiving areas, garbage rooms, electrical rooms, and even sprinkler rooms are often located on the exterior walls of buildings and may not be consistently heated:

• It is important to maintain a temperature of at least 10 degrees Celsius in buildings with sprinkler systems.
• Consider how long your building will be able to maintain an adequate temperature in the event of a prolonged power outage. In recent winters, many dealers have had to resort to backup generator systems during extended power outages.

Portable heaters:

We occasionally note that some dealerships use portable electric heaters in areas of buildings without a proper or consistent heat source. We recommend caution when using these heaters as they may not be ideal for commercial occupancy. If used in your dealership, consider these precautions while in use:

• They should be plugged directly into a wall outlet and not use an extension cord or power bar.
• These types of heaters must never been used in body shops or mixing rooms as they are a potential source of ignition.
• Always be sure the area surrounding such a heat source is kept free and clear and that the heaters are unplugged before the dealership closes for the evening.
• Refer to the manufacturer for any other instructions regarding safe use and operation.

Wet floors:

Consideration should be given to controlling and minimizing wet floors throughout the facility, especially during the winter months. This is an issue most dealerships area aware of, in customer facing areas, but many dealerships do not exercise the same level of awareness and precaution in the service shops and parts departments.

• Non-slip mats and/or runners should be installed at all entrances. Wet floor signs and mops should be kept close to public entrances for quick clean-ups.

With a little extra vigilance during the winter months, dealerships may be able to prevent or reduce the impact of claims on their loss ratios.

For more information on loss control, please contact your Marsh Advisory representative:

Sathyan (Sath) Laloo
416 200 0943 | Fax: 416 349 4564
sathyan.laloo@marsh.com

^{This document and any recommendations, analysis, or advice provided by Marsh (collectively, the “Marsh Analysis”) are not intended to be taken as advice regarding any individual situation and should not be relied upon as such. This document contains proprietary, confidential information of Marsh and may not be shared with any third party, including other insurance producers, without Marsh’s prior written consent. Any statements concerning actuarial, tax, accounting, or legal matters are based solely on our experience as insurance brokers and risk consultants and are not to be relied upon as actuarial, accounting, tax, or legal advice, for which you should consult your own professional advisors. Any modelling, analytics, or projections are subject to inherent uncertainty, and the Marsh Analysis could be materially affected if any underlying assumptions, conditions, information, or factors are inaccurate or incomplete or should change. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Except as may be set forth in an agreement between you and Marsh, Marsh shall have no obligation to update the Marsh Analysis and shall have no liability to you or any other party with regard to the Marsh Analysis or to any services provided by a third party to you or Marsh. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage.}