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The Swift Corporation has 5,000 sales representatives and employees in the United States who drive company cars. The company’s risk manager has recommended to the firm’s management that the company should implement a partial retention program for physical damage losses to company cars.

  1. Explain the advantages and disadvantages of a partial retention program to the Swift Corporation.
  2. Identify the factors that the Swift Corporation should consider before it adopts a partial retention program for physical damage losses to company cars.
  3. 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?
  4. Identify two risk-control measures that could be used in the company’s partial retention program for physical damage losses.

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