TRENDS: Parts vendors indemnifying shops

by | Apr 25, 2012 | News

The aftermarket parts industry is adopting programs to indemnify collision shops using the parts in an effort to overcome liability concerns over use of the parts.
LKQ Corporation in April said that in addition to a lifetime warranty on its non-OEM parts, it will indemnify shops against injury or damage caused by a defective vehicle part distributed by LKQ. The “Promise of Protection” program it covers a “licensed automotive repair shop” that purchases the part from LKQ, excluding claims arising from shop negligence or malfeasance
LKQ’s move follows Diamond Standard’s announcement in January that it is offering Automotive Service Association member shops coverage under a $40 million liability insurance policy for any liability issues related to the performance of Diamond Standard non-OEM structural parts.
Geoff Crane of Diamond Standard said the company will be announcing expansion of the liability coverage to MSOs and members of other associations in the coming weeks. The company has just launched a website ( where anyone can submit their contact information in order to read the details and disclaimers and apply for benefits.