Many business owners feel tense at the mere mention of the word audit. But going through an auditing process doesn’t have to be a stressful thing you hope to merely survive. In fact, the right audit can be a highly useful tool that benefits your Residential Care Facility for the Elderly (RCFE).
An insurance audit gives you a way to reap a number of benefits, from peace of mind to cost savings.
The Benefits of an Insurance Audit
You put insurance in place at your RCFE to defend against life’s what-ifs.
If a resident slips and falls and you find your facility embroiled in a lawsuit with their family, your general liability insurance steps in to help with legal fees — and even the settlement, should you need to pay one. Or if a fire breaks out, your commercial property coverage helps you rebuild without draining your cash. If an employee gets hurt at your RCFE, your workers’ compensation covers their medical care so you don’t have to dip into your own pockets.
In other words, the right policies can extend the protection you need to avoid unexpected expenses and to keep your business moving forward.
So, how do you make sure you have the right insurance coverages in place?
An insurance audit provides a highly valuable tool here. In fact, while you might get a notice from your insurer that they’re performing an audit, you might even choose to initiate this process yourself.
An audit means that an insurance expert reviews key information — like your business records — to ensure you have the right coverages in place. It can even point out anywhere you might need to make adjustments to be in compliance with regulation that applies to your facility.
It also helps to properly match your insurance premiums to the level of protection your business needs. This way, you have the appropriate safeguards in place and you’re not paying more than is necessary for them.
Preparing for an Insurance Audit
Your auditor should work closely with you to make the audit as streamlined and simple as possible.
As the RCFE owner, your primary job during this process is to be transparent. When asked for certain business information, the faster you provide it, the faster your audit moves forward.
Some of the information you might be asked to provide includes:
- Your current certificates of insurance
- Payroll records
- Sales reports
- Tax documents
If you have hired any independent contractors at your RCFE, also be ready to show information there, like pay records and the contracts you have in place with them.
As you move through the audit, the auditor matches the coverages your facility needs to the right policies. In some cases, RCFEs who complete an audit even get a refund because they were paying for more coverage than was truly necessary.
If you want a way to ensure you have the right safeguards in place — and you’re not paying extra for them — you can ask our team about an insurance audit. Contact us at (805) 413-5668.
