The Private Brand Tire Group's (PBTG) attempt at setting up a captive insurance program for its members addresses a critical area of concern for all private brand companies, not to mention tire dealers.
Insurance, whether it's general liability or medical, has become a hot issue for dealers.
One executive of a large tire dealer group told us recently that his group's membership is facing dramatically higher medical insurance costs.
But a problem he is having in trying to sign a medical insurance provider is that any large group consisting of individual businesses must get everyone on board and committed for a program to be effective.
The same goes with general liability insurance, which PBTG Executive Di-rector Don Do-minguez called one of the tire industry's most pressing concerns. Rates have skyrocketed since the 9-11 terrorist attacks.
Mr. Dominguez's proposal to establish the PBTG's own so-called “captive” general liability insurance program could save dealers and distributors money, while ensuring coverage.
Under such a plan, members of a group own the policy but are fronted by an insurance firm that assumes financial responsibility for the captive's business.
Mr. Domin-guez hopes to have the plan in place by September.
Should it become a reality, the PBTG's insurance program will provide a valuable benefit to membership in the group and could be an example that others in the industry can follow. As so many dealers keep saying, “something must be done.” It's time.