What Auditors Look for in Insurance requirements tied to safety compliance Checks

In the building materials industry, safety isn’t just a priority—it’s a requirement. Distributors must maintain a safe work environment not only to protect employees and equipment but also to meet the conditions outlined in insurance policies. When an auditor steps in to review safety compliance as it relates to insurance, they follow a detailed checklist. Knowing what they look for can help your team stay prepared, avoid costly violations, and ensure uninterrupted coverage.

Here’s what auditors typically focus on during insurance-related safety compliance checks.

• Proof of Safety Training and Education

Auditors will ask for documented evidence that all employees—especially those in high-risk roles—have received appropriate safety training. This includes:

Onboarding training for new hires

Forklift and heavy equipment certification

Hazardous materials handling

Periodic refresher courses

Training records should be well-organized, up to date, and include attendee lists, topics covered, and instructor credentials.

• Up-to-Date Safety Policies and Procedures

Your company’s safety manual or procedures document is a key item during a compliance check. Auditors will want to see that you have written policies that align with OSHA standards and your insurer’s requirements. These documents should be readily accessible and actively used—not just written and forgotten.

Auditors also verify that these policies are regularly reviewed and updated to reflect changes in operations or regulations.

• Incident Reports and Response Protocols

Accurate incident reporting is essential. Auditors will review your logs of past workplace injuries, near-misses, and corrective actions taken. They’re looking for:

Proper documentation of each event

Timely responses and investigations

Evidence of follow-up measures to prevent recurrence

Frequent or repeat violations without mitigation can raise red flags with insurers.

• Maintenance and Inspection Records

Safety compliance relies on functioning equipment and hazard-free environments. Auditors will expect to see:

Routine inspection schedules for machinery, vehicles, racking systems, and PPE

Logs showing maintenance completion dates and responsible personnel

Records of hazard corrections or repairs

If you operate a fleet or use lifting equipment, these inspections are even more critical to verify compliance with both safety and insurance standards.

• Emergency Preparedness Plans

Insurance auditors want to see that your warehouse or distribution center has a working emergency response plan. This includes:

Evacuation procedures

Fire safety protocols

Spill containment (for applicable materials)

Regular emergency drills and training

Signage, access to emergency exits, and visibility of response tools (like eyewash stations or fire extinguishers) may also be assessed.

• Compliance with Regulatory Standards (OSHA, NFPA, etc.)

Insurance audits are often tied closely to regulatory compliance. Auditors will check whether your operation meets local, state, and federal safety standards, including:

OSHA workplace safety rules

NFPA fire safety codes

DOT requirements for transportation-related safety (if applicable)

Failing to meet these can impact not just your insurance status but your ability to legally operate.

• Risk Management and Safety Culture

While not always documented, auditors assess your workplace culture. Are employees following safety procedures? Is PPE being used consistently? Are supervisors actively enforcing policies?

Some insurers even consider offering discounts or favorable terms to businesses that demonstrate strong leadership commitment to risk management and safety promotion.

• Insurance-Specific Requirements

Each insurance provider may include custom safety stipulations in your policy. Auditors will look for compliance with:

Minimum lighting levels

Security camera systems

Safety barriers in loading areas

Training frequencies specified in policy terms

Failing to meet these specific requirements could result in premium hikes or even denied claims in the event of an incident.

Conclusion

Audits can feel stressful, but they don’t have to be. When your safety practices are well-documented, consistently followed, and aligned with your insurance policy, audits become a confirmation of your operation’s reliability—not a risk. For building materials distributors, staying ahead of what auditors look for not only protects your people—it protects your bottom line.