5 Ways to Protect Yourself from a False Pretense Claim

Last week, we discussed the definition of False Pretense Coverage. As the owner of an auto body and repair shop, it is important to know that this type of coverage is a crucial part of your garage insurance policy. To recap, False Pretense Coverage is an endorsement that is available to shop owners, designed to cover a loss that is caused when someone causes you or an employee to voluntarily part with a vehicle by trickery, scheme or false pretense.

This week, our agency would like to extend some advice to all auto body shop owners. We have put together five practices that may end up protecting your business from a false pretense claim.

#1: When notifying your client by phone that the repairs to their car have been completed, always verify that you are speaking directly with the owner of the vehicle.

#2: Be sure to ask what time and who will be picking up the vehicle.

#3: If any other individual comes to get the car, verify their identity by calling the client before releasing the vehicle.

#4: If the client is not available, either refuse to release the vehicle or ask the individual for his/her license and keep a copy in the file with the paperwork.

#5: Just before releasing the car, phone the owner (maybe you will be able to contact him/her at this point) and leave a message indicating to whom you are releasing the vehicle and at what time the vehicle was released.

At Wolpert Insurance, we want to make sure you are 100% aware of all the risks your auto body shop could face and if possible, we would like to help you avoid them. Follow the tips listed above and your business just may end up avoiding a claim in the future. To take protection a step further, contact our agents about a False Pretense insurance policy. We would be more than happy to discuss this option with you.