Failure of Work Performed
Relying on our risk management expertise and our extensive information database, Utica National analyzed
liability losses reported by our auto repair shop customers during a three year period. We identified the most
frequent loss-producing areas so that you can focus your risk control efforts and apply countermeasures to
help prevent future problems. Failure of work performed is the second leading liability accident type.
Failure of work performed claims have resulted in a variety of scenarios such as brake failure from faulty
installation, throttle sticking after repairs causing a collision, a blown tire that caused an accident and a recently
installed windshield falling out and striking the driver. We have broken the contributing factors into three
categories: work performed parts and quality control.
Work Performed
Contributing factors to “work performed” loss types are as follows:
ƒ Lack of adequately trained and/or certified mechanics.
ƒ Inexperienced mechanics working unsupervised.
ƒ Not following manufacturer’s specifications in making adjustments and repairs.
In order to reduce the chance of losses emanating from the above contributing factors the following controls
are recommended:
ƒ Use of ASE certified mechanics can reduce the faulty workmanship exposure.
ƒ Student interns should never be allowed to perform work on vehicles unless they are under the direct
supervision and guidance of an ASE certified technician.
ƒ Less experienced workers should be paired with more experienced technicians until they have
demonstrated an acceptable level of competence at handling the required tasks in replacing all fluids
and filters.
Subsidizing the ongoing education and training of mechanics, preferably for courses that are offered by auto
manufacturers and/or are certified by the National Institute for Automotive Service Excellence (ASE).
Parts
Contributing factors to “Parts” related losses are as follows:
ƒ Buying parts from junkyards and sources not well know or qualified.
ƒ Installing parts brought in by customers.
ƒ Selling off-brands of a questionable quality or compatibility.
The information contained in this publication has been developed from sources believed to be reliable. It should not, however, be construed or relied upon as legal advice and
Utica National accepts no legal responsibility for its correctness or for its application to specific factual situations.
Utica National Insurance Group • Utica Mutual Insurance Company and its affiliated companies, New Hartford, NY 13413 • www.uticanational.com
Form 5-R-586 Ed. 12-2009
Page 1 of 2
In order to reduce the chance of losses emanating from the above factors the following controls are
recommended:
ƒ Deal with only reputable part’s manufacturers and distributors that have established quality programs.
ƒ Parts purchased from junkyards should be thoroughly checked by an ASE certified mechanic before
purchase/installation.
ƒ Parts brought in by customers should not be installed as the part quality is an unknown.
ƒ It is preferable to sell name brand products whose manufacturers offer quality guarantees on their
products.
Quality Control
Contributing factors to losses emanating from poor quality practices are as follows:
ƒ Poor record keeping, especially with work orders.
ƒ Lack of a systematic and informed approach to selecting parts, replacement fluids and refrigerants.
ƒ Not complying with State Regs for vehicle inspection and emissions testing due to inadequately trained
mechanics, poor maintenance and/or poor calibration of testing equipment.
ƒ Poor customer relations due to employees with poor interpersonal skills and lack of an effective
customer complaint program.
In order to reduce the chance of losses emanating from the above factors the following controls are
recommended:
ƒ Work orders should be maintained for all jobs. The customer should sign the work order acknowledging
the acceptance of the completed work. The order should list all labor procedures and parts used. Work
needed but declined by the customer should also be documented.
ƒ Establish a procedure to have the service manager check the quality of work before a vehicle leaves
the shop.
ƒ A loss control “best practice” is the use of auto manufacturers' or parts manufacturers' books that list
the recommended oil levels and filter types for every make and model vehicle on the road today.
ƒ Refrigerant quality should be checked upon delivery then periodically to avoid contaminated product
being placed into air conditioners.
ƒ Warranty programs should be honored consistently and effectively to maintain a good reputation.
ƒ Complying with State regulations for inspections and emissions can help avoid claims for where
vehicles should not have passed inspections and caused an accident.
ƒ An effective program for handling customer complaints should be in place. Most repair shops will offer
to correct any problems they may have inadvertently been caused while performing services or repairs.
The information contained in this publication has been developed from sources believed to be reliable. It should not, however, be construed or relied upon as legal advice and
Utica National accepts no legal responsibility for its correctness or for its application to specific factual situations.
Utica National Insurance Group • Utica Mutual Insurance Company and its affiliated companies, New Hartford, NY 13413 • www.uticanational.com
Form 5-R-586 Ed. 12-2009
Page 2 of 2