Is My Contractor’s Insurance Active? How Certificate Of Insurance Management Takes Away The Guesswork
COI Management |December 7, 2021
Certificate of insurance management is a critical part of protecting your organization’s reputation and reducing risk. Network managers are increasingly turning to outsourced professional COI management as a consistent and reliable solution.
If your organization works with contractors to accomplish service tasks for customers, not only do you need to efficiently process compliance documentation, you also need to utilize a certificate of insurance management system that will help to ensure that your contractors’ insurance policies are active and in compliance with your standards.
Your contractors submit their initial certificates of insurance (COIs) when they begin working with your organization, and you may assume that they are maintaining that coverage for the duration of their contract. The truth is that these insurance policies, like any insurance policy, have effective periods during which the coverage is active. To ensure seamless coverage with no interruption, they must be renewed and reinstated before the expiration date of the policy.
What is the Purpose of a COI?
The COI comes from the insurer or insurance agent and confirms that the contractor holds commercial insurance coverage. It serves as evidence for your organization that the contractor is not uninsured or underinsured according to the requirements of their contract.
What Happens if a Contractor Does Not Have Active Commercial Insurance Coverage?
If your contractor does not have a current insurance policy and an accident or other incident occurred while they were working on your behalf, your company may become financially liable. The insurance policy may have been canceled, or maybe the contractor failed to renew it. Either way, it would mean that you may be responsible for any costs that are associated with the incident.
How Certificate of Insurance Management From PlusOne Solutions Takes Away the Guesswork
Some organizations may try to manage their contractors’ COIs internally and while this may sound like a good idea, in theory, putting it into practice can be a very different story. We know that this task can be complex and time-consuming, especially if you are not familiar with certificate of insurance management.
Attempting to manage contractor COIs internally might leave you wondering if your contractors are maintaining consistent insurance coverage when you don’t have time to regularly verify it for yourself.
Organizations that work with PlusOne Solutions see increased compliance rates. We use a specialized strategy that includes a combination of experienced processors who understand insurance and automated systems that ensure that insurance is tracked in an accurate and timely manner.
Additionally, we take steps throughout the year to verify that insurance coverage is active and in good standing. This allows members of your organization to focus on core business needs – not on certificate of insurance management. Working with us provides peace of mind that your organization is taking the appropriate steps to ensure that your contractors are insured.
Let us take care of your certificate of insurance management needs and you will see why we have been leaders in the extended workforce industry for the last 16 years. Contact us today to learn more about how our compliance solutions can help your organization.
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 contractor and vendor relationships while creating safer work environments. To learn more, visit https://www.PlusOneSolutions.net.
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