Why It’s Important to Track a Renewal Certificate of Insurance For Contractors
COI Management |August 27, 2021
You probably already know why you need to ensure that your extended workforce is properly insured, but do you know why you need to track a renewal certificate of insurance for contractors? Keep reading to learn the answers, and to see how PlusOne Solutions can help your organization.
It might be tempting to assume that as long as your contractors have submitted an initial certificate of insurance(COIs) when you first recruit them, they are insured according to your company’s requirements and are maintaining coverage for the duration of their contract. The truth is that it’s absolutely critical to your risk management strategyto track the certificate of insurance for contractors, and here are three reasons why.
One: It Protects Your Business
Using a contractor network with current insurance policies protects your company from liability should an incident involving the contractor occur on a job site, in a customer’s home, or elsewhere while they are providing service on your behalf. If the insurance policy was not renewed or has been canceled, it leaves your organization exposed to liability for financial damages and legal repercussions. Don’t get caught using an uninsured contractor. If the contractor doesn’t have the means to pay for an accident, your company will be the one paying the bill.
Simply having coverage isn’t the only thing to consider either – there are many different kinds of insurance policiesand their details are disclosed on a certificate of insurance for contractors. If you fail to collect COIs and verify that the coverage is adequate and meets the requirements of your organization,
you may find that your contractors are underinsured. Underinsured is similar to being uninsured. If the accident isn’t covered by the policies and their limits, then your company will have to pay the difference if they don’t have the funds available. If you’re not tracking your contractor COIs, you are risking the reputation and operations of your business.
Two: It Eliminates Gaps in Coverage
When there is work to be done, submitting a COI to your company can easily fall on the backburner, if it happens at all. It is important to have a renewal process in place that sets the expectation that it is just as important as the work to be completed.
Tracking the certificate of insurance for contractors by partnering with PlusOne Solutions helps prevent these gaps in service. We specifically work with the insurance agent or carrier to collect the renewals prior to expiration and close the gap in any underinsured contractors. This allows your contractor to focus on the work at hand. We send automated emails to the insurance agent and company 30 days, 14 days, and 7 days prior to the expiration of the policy on the COI that is on file.
Additionally, you will receive verification once we have processed and updated the new COI for your contractor’s policy renewal, giving you the information you need and the confidence that your business is protected from liability.
Three: It Gives You Data
When your organization isn’t tracking the certificate of insurance for contractors, there’s no way to display information or show that your compliance results have been improving or declining over time. Simply receiving the COI from your contractor and then filing it away won’t tell you anything, and it’s also a poor strategy when you want to reduce risk exposure. In addition, when an accident does occur, and you must contact the insurance carrier to file a claim, having a COI with this information is critical. Don’t find yourself attempting to contact and work with a contractor who may be avoiding you because of an accident due to their negligence.
When PlusOne Solutions manages your organization’s COI process, not only will you see better compliance rates, you will get nightly compliance reports and data feeds with company and insurance information. Our Enterprise level clients also have 24/7 access to interactive dashboard reporting with high-level and detailed missing compliance items, regular meetings to review compliance and goals, and consultation on insurance and industry best practices.
Why You Need PlusOne Solutions when Tracking a Certificate of Insurance for Contractors
With over 16 years of experience in the extended workforce compliance industry, our team of professionals gives you the efficiency and accuracy you need when tracking contractor COIs, and works to ensure that your contractor network is fully compliant to your standards.
Our certificate of insurance tracking services will save your company time and money. Contact us todayto learn more about what we can do for you.
Contents are provided for information purposes only and should not be construed as legal advice. Users are reminded to seek legal counsel with respect to their obligations and use of PlusOne Solutions services.
About PlusOne Solutions
PlusOne Solutions has been an industry leader in the risk management field by specializing in compliance programs that meet the complex challenges of geographically dispersed contractors, vendors, and employee networks. PlusOne Solutions protects companies from possible financial, legal, and reputational risks associated with contractorand vendor relationships while creating safer work environments. To learn more, visit our website.
To receive these updates directly in your email inbox, sign up for the newsletter. Questions or comments? We want to hear from you.