John Hyland is president of direct writer for Sentry Insurance, which currently insures more than 3,000 dealerships and automotive service shops. He spoke with Editor Dan Shine about the fire risks in dealerships and how to prevent them. Here are edited excerpts.
Q: Can you give some background on dealership fires and what's happening around the industry?
A: Dealership fires are a multimillion-dollar problem for the industry. We see specific challenges within dealership service centers, where significant amounts of flammable liquids, combustible materials and built-in electrical systems all serve as potential trigger points. The result of these fires cost dealerships their facility and months of interruption while they rebuild. When those operations come to a halt, revenue stops. At some point, customers need their vehicles serviced in the months after a fire, leading them to competitors. You can replace facilities, but it's much harder to rebuild your relationships and customer base.