Safety First in the Auto Dealership Industry

In recent years, automobile owners have increasingly turned to auto dealerships for their maintenance and repair services. In 2021, dealerships wrote more than 271 million repair orders, according to the National Automobile Dealers Association. This growing preference for dealership service centers, coupled with a nationwide labor shortage and unprecedented supply chain issues, has put new pressures on the industry and is directly impacting its workforce.

With fewer than normal employees and increased service demands, auto dealership employees are working longer hours, with a greater emphasis on productivity. As a result, they face a heightened risk for workplace injuries.

Overexertion injuries from repetitive motions or improper handling and lifting of heavy objects are increasingly common. When workers repeatedly lift, reach and twist on the job, using an awkward posture, they can strain and sprain their bodies leading to injury claims and lost work time.

Strain & sprain claims are a leading loss driver among auto dealerships, representing 49% of all indemnity, or lost time, claims.


It’s estimated that in 2020, auto dealerships paid out a total of almost $215 million in workers’ comp claims. And indemnity claims for strains and sprains are the most costly.

The average strain and sprain workers’ comp claim in this sector costs more than $12,200, with strain and sprain indemnity claims averaging over $16,400.


Tech-Enabled Loss Control

Wearable technology can help lessen strain & sprain injuries among auto dealership workers, enhancing loss control efforts. Wearables designed to reduce high-risk movements actually help prevent injuries before they happen, keeping workers safe and productive. A proactive, tech-driven workers’ comp program offers a unique opportunity to introduce this tech to the auto dealership sector.

Workers’ compensation insurance is required for auto dealers in 49 of the 50 states – and therefore something nearly every dealership purchases. New policies are now being offered by brokers and carriers, such as Kinetic Insurance, that include wearable safety tech for policyholders at no extra cost. This innovative approach gives moderately sized companies access to the same world-class technology used by Fortune 500 companies. And the same benefits!

Policies with wearable safety technology work proactively to reduce loss by significantly reducing injuries such as strains & sprains. The devices provide continuous coaching to help workers change the way they move over the long term. Users receive vibrational alerts each time they make a risky movement on the job, increasing their awareness and creating safer habits.

Wearable Tech can reduce injury frequency 50-60% and lost work days 72%


Wearables also provide employers with a new data set that uncovers the areas and employees most at risk, which allows them to take steps to further reduce workplace risks and control loss. 

Reduced injuries equate not only to a safer workforce, but also to reduced premium costs and improved experience modification scores for policyholders.

Kinetic Insurance, in partnership with Nationwide, is pioneering a technology-driven approach to worker safety that benefits insurance carriers, brokers, and policyholders. Our workers’ compensation offerings lower costs by equipping workers with wearable technology that is proven to reduce injuries by as much as 60% and lost work days by 72%. Want to learn more? Click here to inquire about being appointed with Kinetic Insurance.