AUDIT! If you are running your operation safely, you have nothing to worry about.
Periodically, your insurance company wants to actually come out and see your operations. After all, if you have a huge claim, they will be paying out on your behalf. They will pay attorneys, investigators and ultimately settlements. So, it is fair to come and assess what risk you are placing them in.
In case you have never had this experience, most of the time it only takes an hour or two. You can expect a conversation of how you handle your day-to-day business from how you take orders to how you complete them and what documentation takes place during the process.
You also will need to document such things as your total mileage on each vehicle during the last calendar year or past 12 months. Your driver files will be reviewed. If you have had any accidents or claims in the past 12 months, your auditor will want to review how you handled the documentation of the event.
If you have a training manual or orientation program, have that ready as well. The insurance company would prefer that you not just hire someone and hand them the keys to your car, so make sure you can document what happens before they get the keys. You clearly should have a written training program in place.
Another big area of concern is your vehicle maintenance records, and more importantly, what type of preventive maintenance program you have and who performs such maintenance.
As long as you are good at documentation and organization, the entire event should be painless. Well, at least that’s how I am assuming my audit tomorrow will be. I will write more about this next week when I can tell you how it actually went for me.
— Jim Luff, LCT contributing editor
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