How to Avoid Liability Risks in ADAS Repairs and Calibrations

Let’s picture a scenario where your shop services a vehicle's front bumper. This is an easy replacement that your shop has conducted hundreds of times. The vehicle is returned to the customer, and somewhere along the way, it’s involved in a collision where the Forward Collision Warning (FCW) feature failed to perform as intended.

In this scenario—where your shop either disregarded or miscalibrated the ADAS sensors on the front bumper—you may be held liable for damages. Some law firms are already advising to review maintenance service records in the case of ADAS system failures.

This makes it all the more vital to do your due diligence and ensure every ADAS feature that is affected during your service is calibrated and functioning properly. Your shop can possibly be held liable for negligence if you fail to calibrate post-service.

While law firms are already testing the waters on ADAS failure cases and the liability landscape is still undergoing changes, your shop must be prepared for this possibility. The only way to ensure you avoid liability issues is by covering all of your bases.

Communication is your first line of defense

Protecting yourself, your team, and your shop from liability issues starts by being thorough and concise in how you communicate with customers, insurance companies, and your own team as well. Ensuring all three parties are on the same page builds a solid foundation that strengthens your shop’s ability to properly function.

There are numerous methods to create pathways for open communication, all of which are a good starting point to build trust and mutual respect. 

Customer education and expectations

We can’t emphasize enough how important it is to be on the same page as your customers. By actively listening to their vehicle concerns and relaying useful and actionable information back to them, you can create an atmosphere that promotes trust and open communication. 

While ADAS integration continues to skyrocket, only 18% of drivers can correctly identify what ADAS is. This means that they may not understand the importance of the service you’re offering, and may feel like you’re trying to upsell them.

This is why properly educating your customer on the importance of ADAS is the first step in protecting yourself. Revv outlines a simple method to ensure your customer is up to speed on the importance of ADAS, how long to expect service to take, and potential challenges dealing with insurance companies.

Following this approach is a sure-fire method to avoid any issues. This includes communicating the importance of properly functioning ADAS features with clarity, addressing the cost conversation head-on, and creating documentation that protects everyone, especially your shop, from liability.

Keep in mind that it’s important the customer is well-aware of their insurance policy and any limitations for repair shops that may impact what services can be addressed and where.

Insurance company communication

Insurers have specific responsibilities when it comes to property damage claims, and they are outlined in individual policies. It is important to know what the responsibilities and limitations are of the specific policy before conducting any service.

Your shop must communicate with the insurer, providing vital pre-authorization points of information such as:

• Documented assessment of damages
• Cost estimates
• Customer authorization. 

Failing to follow these pre-service steps could put your shop at risk for liability. If service unfortunately costs more than initial estimates, it’s vital to communicate this with insurers and justify this supplement.

Moreover, your shop must provide OEM requirement documentation to further justify service to any given ADAS feature; this will protect you from claim denials or liability questions in the case of malfunction.

Internal team communication

The right approach to communicating with your team can similarly ensure you protect yourself from the uncertainty. What you need to focus on is being intentional and measured in how you go about this.

With regard to liability issues, you should maintain codes of conduct and procedures for your team to follow, ensuring the proper steps are always followed and all bases are covered. This can include:

• Protocols for training technicians - your techs should follow the same workflow with each calibration, documenting each step of the way
• Handoff procedures - your employees must keep each other accountable when handing off tasks, and have a procedure that keeps everyone on the same page
• Quality checkpoints - Create a list that prevents any missed steps in the calibration process

These methods can help keep your shop tidy, certain, and well-organized. These characteristics are inherent to successful shops and those that are safe from liability issues.

Documentation is your legal shield

The most important defense your shop can have from liability concerns is a robust and complete documentation procedure. OEM documentation is essential for ADAS work, and while these systems are always evolving, you need to stay current in order to protect yourself.

The first step to building any sort of liability defense is understanding the importance of documentation. Documenting is essential because it shows that you’ve complied with OEM procedures, and it is a receipt that your shop has followed through with the checkpoints that ensure the systems function correctly.

If an accident occurs where an ADAS feature malfunctions, documentation that proves your shop followed the correct procedure is a legal bulletproof vest. Insurance companies are increasingly requiring this documentation to pay out claims, and in the legal world, lacking documentation could be grounds for a lawsuit.

Pre-repair documentation

When a vehicle first rolls into your shop, there are a few steps you should follow before performing any repairs. 

In short, your shop should initially:

• Conduct a scan using tools such as OEM scan tools or VIN decoding software to tell you exactly which systems are equipped on a specific vehicle
• Keep well-organized and detailed damage assessment records that can be easily shared with your team, the customer, and the insurance agency
• Require your customers to sign consent forms after providing them with service estimates

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These pre-repair documentation steps provide a very strong foundation for your legal shield in the world of ADAS liability.

Calibration process documentation

During the actual calibration, there are also checkpoints you must follow to guarantee top-notch and proper service. It’s incredibly important you follow these procedures to the letter and document each step.

To prove you are maintaining the proper procedure, your shop must:

• Retrieve, comply with, and document that you follow OEM procedure step-by-step
• Maintain the correct environmental conditions in your shop for a specific calibration, and be sure to include this in your documentation
• Test and record each tool used throughout the entire process

These simple steps during the calibration will help you to prove that you followed through on the proper procedure and have no fault in the case of an ADAS system malfunctioning that you had serviced.

Post-repair verification

Once the vehicle’s ADAS system has been properly calibrated, you must verify your work. Returning the vehicle without testing is just as dangerous as neglecting to complete the job in the first place. 

Your shop should perform static and dynamic tests of the desired ADAS feature, ensure the function of the system, and document these tests for the customer and the insurance agency.

Documentation can truly serve as a shield against liability questions coming against your shop. If you follow the correct pre-repair, during repair, and post-repair procedures, making sure to record every step of the way, you create a very solid foundation for your legal defense in the unfortunate scenario that an ADAS feature that you serviced malfunctions.

Proper procedures and compliance

Like previously mentioned, following the proper procedure is the only way to truly protect against liability questions. The two biggest steps you can take to guarantee you are compliant are to be privy to OEM specifications and to get your technicians properly trained.

Let’s look at how you can stay well within a comfort zone when it comes to compliance.

OEM specification adherence

While we have already talked about the importance of documenting OEM adherence, it is well worth another mention. OEM specifications are the end-all be-all in the vehicle safety industry; understanding this is just half the battle.

While the aftermarket tends to stay stable and change slowly, ADAS calibration requirements change at light speed. As often as daily, OEM requirements can change due to software updates, new protocols for diagnosing, or revised safety standards.

You need the correct software and tools that keep you current with OEM requirements. This will help you to follow the correct manufacturer guidelines that tell you exactly how to service specific ADAS systems. While these guidelines may change rapidly, it is essential you stay ahead of the change and always perform the service correctly.

Using the correct equipment is also a challenge when OEM specs are evolving constantly. Using the wrong or outdated equipment, despite following the correct procedures, can hurt your chances of freedom from liability. This is also true of environmental requirements for calibrations; you must always make sure each facet of calibration follows the correct procedure.

Technician certification

It may be worth getting your technicians ASE certified as well. ASE certification is among the most respected credentials in the automotive repair industry, and can give your shop a better reputation.

Getting your technicians certified can provide enhanced protection from liability concerns as their training, skills, and education will be well-documented. This can protect against unfortunate claims that your technicians are underqualified or inexperienced. 

If your team is well-equipped and educated to tackle calibration, this will help to further reinforce your legal defense in the case of ADAS malfunction.

Technology solutions for liability protection

While building this legal shield may seem overwhelming, it is necessary. Luckily, there are technology solutions available for you to take your shop to the next level. With the right partnerships, you can follow the advice in this article word for word, nearly without lifting a finger.

Revv exists to do exactly this: eliminate the tedious work of manually creating estimates, searching for OEM requirements, and documenting each step. With Revv, you will instantly have access to:

• Automated documentation - Revv autogenerates and can fill the exact documentation and justification you need for insurance claims and legal protection
• Compliance tracking tools - Revv does the OEM searching for you, no more manually thumbing through online databases to find what you’re looking for
• VIN decoding - You will be able to know exactly what you are dealing with on each vehicle

Revv seamlessly integrates into your workflow, and with your existing software, such as Mitchell, CCC, and QuickBooks. You will be met exactly where you’re at, with no additional steps to your already busy workday.

Book a demo with Revv today to learn more about how we can help ease your liability concerns with accurate and effortless documentation.