Property managers – are you getting the job done? If insurance compliance data did not inform the answer, your company may have a risky blind spot that could cost millions in time and money.
No shortage of key performance metrics (KPMs) exist in business. The adage of “what gets measured gets managed” holds true. Property management companies frequently track occupancy rates, tenant retention, and expenses because they easily correlate to overall profitability. Creating KPMs around insurance compliance provides another important way to improve the bottom line. Unfortunately, these performance indicators often get overlooked or undervalued. It’s time to do some maintenance on your KPMs if your company isn’t measuring these five compliance areas:
Certificates of Insurance Verification
Regular insurance tracking mitigates risk and prevents claims. All parties living or working within your property need active, accurate insurance that complies with contract requirements. Assess performance in this area by verifying Certificates of Insurance (COIs) for all entities. Act immediately on coverage lapses and non-compliance. Document expiration dates and proactively send alerts for updated COIs before coverage ends. Strive for compliance above 90% for each property.
Financial Loss Incidents
Bad days in property management are inevitable. Really bad days include a financial loss. Track the number of incidents resulting in a loss by property. Audit incident reports for causation, as well as timeliness and detail in documenting the event. Measure preventable versus unpreventable incidents. Use the findings to create trainings and processes that help prevent future liabilities. Every property should work toward zero preventable incidents.
Inspection Completion Rate
When were the fire extinguishers last recharged? When is the back-up generator due for service? When do the appliance warranties expire? Missed inspections increase the likelihood of loss events and claim denials. Consider inspections low-hanging fruit to avoid unneccesary costs and downtime. Document by property what inpections are needed, when they are due, and if they are completed on time. Surpassing 97% for on-time inspections is achievable.
Maintenance Efficiency
Maintenance requests addressed quickly improve tenant satisfaction. They also ensure properties stay in good condition and prevent larger maintenance costs in the future. A seemingly innocent leaky faucet could be the precursor to a very costly flood. To establish KPMs for maintenance, start by benchmarking how long maintenance tasks take and the volume that can be completed in a regular workday. Monitor if work orders and punchlists are completed by their due dates. Track downtime between tenants and the costs to get properties ready for renters. Once you have the data, establish goals around efficiency improvements.
Staff Training
Staff training makes all KPM insurance compliance goals possible. However, instruction often falls prey to “do-it-tomorrow time management” – and tomorrow never comes. Employees turn over, tribal knowledge gets lost, and new hires need time to get up to speed. Loss risk increases during this transition time. Identify what positions require insurance compliance training and establish a long-term cadence for education across all properties. Create training opportunities that ensure employees understand each metric’s importance and how to achieve the goal. Aim to have 90% or more of employees always current with training.
Insurance compliance KPMs support the two most important measures every company cares about – revenue and costs. The next time the toolbox comes out, use it to build some compliance metrics. Managing the data for continuous improvement is the best maintenance of all.
Uncomplicate Compliance with myCOI
To meet your insurance compliance KPM goals, myCOI is here to help. Our industry-leading platform helps you process Certificates of Insurance and review coverage to stop non-compliance in its tracks. Gain added support with our real-time insurance expert reviews and Risk Insight dashboard to see problems before they occur. Experience how myCOI transforms insurance compliance from burden to benefit by requesting a demo today.