Certificate of insurance (COI) management can be time-consuming and complicated. Outsourcing the functions and processes associated with insurance certificate tracking gives you the peace of mind that your vendors and contractors comply with your standards.
COI tracking is critical for any business that regularly works with contractors and vendor networks. Ensuring that the entities with which you are doing business are maintaining adequate insurance coverage is necessary to protect your company’s reputation and reduce overall risk. In this blog, we will explain the importance of insurance certificate tracking and how PlusOne Solutions can help.
What Are Certificates Of Insurance?
A certificate of insurance (COI) is a document from an insurer or insurance agent that verifies the existence of commercial insurance coverage. You may also hear it referred to as proof of insurance or a certificate of liability. The certificate is typically just one page in length and includes the following information:
- Name and information of the insured or the contractor that you work with
- Name and information of the insurer or the insurance carrier who provides the insurance coverage
- Name and information of the certificate holder, who is an organization that has been listed to receive a copy of the certificate
- Coverage effective and expiration date
- Type of coverage
- Policy limits
- Other information, such as additional insured, which is when another organization has been added as an insured to the insurance policy.
Why Do My Contractors and Vendors Need To Provide A COI?
Protecting your business is of the utmost importance. Ensuring that you are not working with underinsured or uninsured vendors and contractors can help mitigate risk and remove liability from your company to your contractor should situations occur that are covered under the insurance policy and are the fault of your contractor.
By requesting a COI before work and on a renewal basis, you ensure that your contractor has the coverage at any point. It is not enough just to receive the COI. A policy that appears to be current may no longer be active, and even if it is current, it may not provide sufficient coverage.
Tracking COIs from your vendors and contractors ensures that your business is protected for the duration of their contractual agreement.
Why Is Insurance Certificate Tracking So Important?
Collecting the COI is a way to ensure that your contractor has the insurance coverage to pay for any accidents that may arise out of their work or the products they provide. Without coverage, you could be responsible for costs associated with an accident, or rely on the contractor to have enough reserves in their financial funds to pay for the accident.
Having the COI in hand allows you to look up the insurance carrier information, and in certain cases, you can reach out directly to the carrier to file a claim.
How PlusOne Solutions Can Help:
- Reduced Exposure: When you choose PlusOne Solutions for your COI management, you get unmatched service that will ensure your contractor network is currently insured and compliant with your insurance certificate standards.
- Reduced Costs: In-house COI management can add up as you invest time and resources into insurance certificate tracking. The larger your vendor network is, the more demanding it becomes. Our team of insurance experts and the automated processes that we utilize maximize efficiency. In addition, you will see a reduction in denied insurance-related claims, saving you and your company a significant amount of money over time.
Compliance Details
Both high-level and detailed reporting that show areas of compliance and non-compliance based on your requirements. Compliance reporting ensures that you are properly managing your risk of non-compliant contractors and making an educated decision when you choose to provide work to a contractor who may or may not have the proper insurance coverage.
Expertise & Accuracy
Specialized processors review every COI and other insurance documentation, such as endorsements and policy pages. Our team is highly skilled at identifying fraudulent COIs, working with insurance agents and your contractors to address areas of non-compliance, and robust auditing to guarantee that you have more accurate information.
A Centralized System
Our solutions provide a single online location with 24/7 access to compliance reporting, document management with a repository for COIs searchable by contractor, and Expiration Reports.
As a trusted partner in the extended workforce industry, ServicePower has been efficiently vetting vendors and contractors in your network for 16 years. We are accredited by the Professional Background Screening Association and want to bring our experience and services to you. To learn more about COI management and how insurance certificate tracking can help your business, contact us today.
