Do You Need To Collect COIs? Go To COI Tracking Companies For An Accurate Answer
COI Management |January 6, 2023
Contracting out work and using a contingent workforce is an excellent way to provide services to your customers across a large geographic area, but it can open your organization up to potential risks, especially as it relates to insurance claims. Collecting a Certificate of Insurance (COI) from those companies you contract with may help reduce these risks and protect your organizationfrom costs associated with accidents or lawsuits that could be caused by faulty products, work, or the contractor’s negligence. COI tracking companies highly recommend you collect and properly manage a certificate of insurance for a myriad of reasons.
What is a COI?
A Certificate of Insurance(COI) is a document that contains information about an insurance policy. Using the information on the document, your organization can check that your contractors have insurance coverage that meets their contract requirements, coverage that is active, and coverage that is appropriate for the work they are going to perform.
The COI is convenient and consistent business requirement t for many organizations, and it should share information such as:
Type of Coverage
Special Policy Effective and Expiration Dates
When And Why Do You Need to Collect COIs?
COI tracking companies advise that your organization should be collecting COIsfrom your contractors before the contractor begins working or taking any action. An issue can arise on the first day of work and failing to confirm the proper coverage is in place from that very first day of work, can be extremely costly.
After asking 30,000 small businesses, a recent survey revealed 44% of the businesses open for at least one year had never had insurance. Since 99% of U.S. businessesidentify as small businesses, the chances that you may be working with an uninsured or underinsured company is a legitimate concern. If your organization were to use one of these contractors, and an accident occurred, your company is highly likely to end up with the financial liability of any claims or lawsuits associated with the incident. Collecting COIs can provide you with not only security, but added peace of mind.
It is highly important to review and COIs and make sure they contain the information required. This can be done by your organization, or by COI tracking companieslike PlusOne Solutions. In order to accurately review the information, you will need a copy of the COI. Asking the agent is generally better than requesting it from a contractor; the agent is more familiar with the requirements and insurance language and can confirm if the document is legitimate. Even when you provide the requirements to the contracting company, they will work with their agent to ensure the proper coverage is in place. When collecting a copy of the COI, no one can amend the policy contents or requirements without the contractor and agent agreeing.
COI tracking companieslike PlusOne Solutions can not only take the time-consuming task of COI management off of your back, but can also help keep your contractors stay in compliance with your organization’s requirements, save money, mitigate risk, and more. After viewing thousands of policies, they are adept at reading them, understanding them and identifying concerning trends or fraudulent documents.
The bottom line is that yes, your organization should be collecting and managing COIs if you are working with a contractor network. But what is the best way to go about this task?
Outsourcingyour COI management can also be done at a fraction of the cost of hiring a complete in-house team, and you will not need to go through the long process of vetting, training, or managing employees. Contact us todayto see how our certificate of insurance tracking services 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 contractorand vendor relationships while creating safer work environments. To learn more, visit https://www.PlusOneSolutions.net.
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