Top 10 aftermarket customer liability risks and how to prevent them

Help Your Clients Reduce Risk and Insurance Costs

In today’s fast-moving aftermarket space, repair shops and service centers face increasing liability exposure — from tech errors to customer injuries. For shop owners looking to keep their insurance premiums in check (and avoid costly claims), proactive risk management is more essential than ever.

Here are 10 of the most common aftermarket customer liability risks — and how your clients can stay ahead of them.

👉 Download the printable tip sheet [here] to share with shop owners and prospects.

1. Distracted Driving by Employees

A technician is test-driving a car while checking diagnostics on a handheld device. Or a tow truck driver sends a quick text and misses a stop sign.

Prevention Tip: Hire drivers with clean MVRs and provide ongoing driver safety training. Regularly monitor on-the-job driving behavior and reinforce safe habits.

2. Sloppy or Negligent Repairs

An oil drain plug is left loose. The wrong filter gets installed. A tech new hire, nursing a hangover, uses a substandard part.

Prevention Tip: Implement a thorough hiring and onboarding process, including background checks, drug tests, and reference calls. Set clear repair standards and enforce quality checks before vehicles are released.

3. Customer Slips, Trips & Falls

A customer falls on a slick garage floor or catches their foot on loose carpeting in the waiting area.

Prevention Tip: Perform weekly walkthroughs to check for hazards: poor lighting, leaks, worn flooring, or cluttered walkways. Train staff to respond quickly and compassionately if an injury occurs — how you handle the incident can make or break the outcome.

4. Vehicle Theft or Damage While in Shop Custody

Keys left in unlocked vehicles. Cars parked overnight in poorly lit, unsecured areas.

Prevention Tip: Require all vehicles to be locked and parked in secure locations. Keys should be stored in a locked cabinet or safe accessible only to authorized personnel. Use signage that reminds customers not to leave valuables behind, and that the business will not be held responsible.

5. Business Interruption Due to Faulty Work

Poor workmanship on a fleet vehicle leads to downtime and lost revenue for your customer.

Prevention Tip: Create a double-check system where experienced techs verify critical repairs. Monitor patterns and retrain as needed.

6. Unauthorized Repairs

A customer comes in for an oil change but is surprised by an unexpected $300 bill for additional work done by the tech they didn’t approve of.

Prevention Tip: Require techs to always get signed or written customer approval – without exception – before performing additional services. Train techs to pause and confirm before proceeding with anything extra.

7. Diminished Vehicle Value After Damage or Bad Repair

A tech crashes a customer’s car during a test drive. A poorly installed panel leads to misalignment, reducing the car’s value.

Prevention Tip: Conduct post-repair inspections. Prioritize test-drive safety. Reinforce accountability for quality work and keep experienced techs involved in final checks. It all comes back to making sure you are hiring reliable techs and training them to the highest standard.

8. Product Liability from Faulty Installation

A tech fails to properly torque lug nuts. The wheel detaches on the road shortly after receiving their vehicle back.

Prevention Tip: Standardize torque procedures. Provide hands-on oversight for junior techs and continue skill development for the whole team. Use checklists for critical tasks.

9. Delays Due to Parts Shortages

OEM parts aren’t available due to manufacturing delays or labor shortages — holding up repairs.

Prevention Tip: Stay transparent with customers. Explain the issue, present aftermarket alternatives, and document everything on the repair estimate and order. Communication builds trust.

10. Health & Safety Concerns in the Waiting Area

Post-pandemic, cleanliness and hygiene still matter. One sick customer or tech could lead to complaints or worse.

Prevention Tip: Maintain a clean, well-ventilated waiting area. Continue regular sanitation of high-touch surfaces. Make hand sanitizer available and encourage employees to stay home when ill.

Bonus: Documentation is Your Best Defense

In the event of a liability claim, documentation is everything. According to the Insurance Information Institute, good records can help demonstrate that a shop owner took responsible steps to prevent harm. Examples include:

• Customer communications around risks or delays

• Job checklists, work logs, and repair records

• Photos or reports of safety walkthroughs

• Documentation of employee training and certifications

• Evidence of parts sourcing decisions (especially OEM vs. aftermarket)

Pro tip: If it’s not in writing, it didn’t happen — at least in the eyes of a claims adjuster.

Support Your Clients with Risk Prevention Resources

These 10 risks come straight from our claims management team to help you support your clients before issues arise. Share the [downloadable flyer here] — and feel free to add your agency’s branding and contact info to make it a lead generation tool.

Need more ideas or guidance? We’re here to help you and your clients stay protected.

This post originally appeared [here]. It has been updated and modified to better fit the needs of our IWA producers.