Why Compliance Tracking in Manufacturing Matters
Insurance Compliance tracking for manufacturers is no easy task and simple mistakes can cost thousands of dollars in damages. Manufacturers need to get compliance tracking right because of the many possibilities there are for accidents that can become detrimental to the supply chain.
The company RiskAlternatives, is an organization dedicated to helping start-ups, small businesses, and non-profits succeed at using risk management, points out that “compliance is part of your organization’s duties to its community and stakeholders.”
When an accident occurs and a manufacturer does not have the right insurance in place to ensure compliance, some issues they must deal with include:
- Profit losses.
- Lost time and resources.
- Name and reputation damage.
- Employee and customer claims.
With evolving regulations and innovative technology entering the supply chain, it is impossible to remain in compliance without tracking requirements. This means insurance policies need updates and renewals regularly and you may have to buy new policies to ensure full coverage.
The Insurtech sector is expanding its reach to manufacturing. With new software entering the market, manufacturers are benefiting from things like compliance tracking, certificate of insurance collection and management, and real-time data. But how do manufacturers use this software to get compliance tracking right?
What do Manufacturers need to Understand about Compliance Tracking?
If you do not understand what compliance tracking is, how can you expect to get it right? Here is our definition of compliance tracking that will help you understand the concept. To track something means to watch it from its origin to its end. Compliance Tracking means to follow up on compliance requirements and ensure all legal and contractual obligations are met to ensure safety and organizational protection.
If you have a strong compliance tracking system in place, it is easier for you to be aware of all rules and regulation changes. Knowledge of these changes and ensuring policies and procedures are in place to meet their requirements is how you do compliance right.
How does Compliance Tracking Software work?
Before Insurtech startups, like SmartCompliance, developed compliance tracking software, this process was manual and time-consuming. Manufacturers had to manually collect certificates of insurance (COIs) for insurance policies and file them either on a desktop or in a file cabinet. This manual process caused compliance breaches because of paper trails and clutter that made determining compliance status difficult.
Because of compliance management software, manufacturers can upload certificates and request third-party vendors to upload their proof of insurance to the software. This software scans the documents with optical character recognition (OCR) and makes sure requirements are met. Finally, the software aggregates data, and manufacturers can look at dashboards with compliance reports.
On top of being able to upload COIs and see where compliance is met, manufacturers can also easily automate reminders, so they are sent to vendors when they need to update their insurance policies. This feature means increased compliance and a less likely chance of going out of compliance because a policy expires.
How do Manufacturers get Compliance Tracking right?
When it comes to manufacturing, getting compliance right is not a one-step process. The number one step that all organizations need to follow to get compliance tracking right is to implement a COI tracking and management software. By completing this first step and implementing software, manufacturers can forget about gathering and tracking COIs manually – since a lot of it can be automated – and have more time for other compliance-related tasks like:
- Focusing on industry-specific regulations.
- Understanding the overview of compliance requirements.
- Protecting sensitive data.
- Ensuring workers have protection.
Every organization differs when it comes to getting compliance right. Some organizations need to focus on local regulations, while others must spend more time on international ones. No matter what your organization focuses on when it comes to compliance, there are many places where compliance needs to be met. The best way to get compliance tracking right is by implementing certificate tracking software into your risk management plan.