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The Swift Corporation has 5,000 sales representatives and employees in the United States who drive company cars. The companyâ€™s risk manager has recommended to the firmâ€™s management that the company should implement a partial retention program for physical damage losses to company cars.
- Explain the advantages and disadvantages of a partial retention program to the Swift Corporation.
- Identify the factors that the Swift Corporation should consider before it adopts a partial retention program for physical damage losses to company cars.
- If a partial retention program is adopted, what are the various methods the Swift Corporation can use to pay for physical damage losses to company cars?
- Identify two risk-control measures that could be used in the companyâ€™s partial retention program for physical damage losses.