New IRS-Compliant Program Helps Auto Dealers Mitigate Weather Risks
Ross Automotive Consultants has teamed up with Captive Risk Management to unveil a groundbreaking program designed to assist auto dealerships in mitigating wind and hail exposure costs. By offering an IRS-compliant solution, this initiative allows dealerships to transform catastrophic deductible expenses into dealer-owned assets.
This program's launch is strategically aligned with the rising frequency of storms causing over $50 billion in insured losses across the U.S. annually, as reported by the Insurance Information Institute. Since 2020, average hail damage claims have escalated to approximately $8,200, posing substantial financial challenges for dealerships with outdoor vehicle inventories.
Dealers participating in the program can establish a dedicated, IRS-compliant cell within their existing reinsurance strategy. This arrangement facilitates the funding of inventory deductibles, paintless dent repair, and business interruption claims. Verified by third-party pricing, any unused premiums can accrue as financial assets, rather than being expended or lost.
Program Benefits and Coverage
- Damage from wind, hail, hurricanes, and tornadoes impacting inventory
- Reimbursement of deductibles for qualifying insured losses
- Costs associated with paintless dent repair
- Financial shortfalls between insurance payouts and actual repair expenses
- Business interruptions due to severe weather events
Jim Ross, founder and CEO of Ross Automotive Consultants, stressed the program's advantages, stating, “This partnership with CRM enables dealers to manage their risk effectively and, crucially, to derive financial benefits from it for the first time.”
Kenny Adkins of Captive Risk Management commented on the initiative, “Auto dealerships face significant weather-related inventory risks, and traditional insurance solutions haven't adapted to these challenges. Our collaboration with Ross Automotive Consultants delivers tailored solutions to meet the needs of dealership operators.”
This strategic program is accessible to dealerships nationwide, whether franchise or independent. Ross Automotive Consultants also extends a complimentary feasibility analysis, offering an independent risk assessment and bespoke design to ensure the program's suitability for individual dealerships.