Is Your Compliance Strategy Proactive or Reactive? The Part COI Verification Plays
COI Management |July 7, 2022
If your COI verification process seems to create more problems than you can efficiently address, it may be time to rethink your overall compliance strategy. Partnering with PlusOne Solutions can help turn your compliance program into a valuable asset for your organization.
Many organizations must access the skills and availability of a widespread professional contractor network. It allows them to provide their customers with specialized services or products where they live and work.
However, working with this extended workforce also means that you need a strategy that ensures they comply with your organization’s requirements. For contractors, this can include:
Going through an initial background screening process
Going through regular background rescreens at different intervals
Meeting professional licensing requirements
Holding an active insurance policy
Maintaining an insurance policy with adequate coverage
What is your organization doing to manage these aspects of your contractor compliance program? In this blog, we will discuss some signs that your strategy for certificate of insurance management may be more reactive and not as proactive as you would like.
Is Your COI Verification System Working? Signs it’s Time to Reevaluate
Lack of Consistency
A vital part of a COI management program is ensuring that your contractors have active insurance policies. This is done by requesting a COI from your contractor and verifying the policy with the insurer. The policy should also be reverified at intervals, and a new COI should be requested when the current policy is nearing its expiration date.
One sign that your COI verification strategy is more reactive than proactive is if you are unable to reach out with consistency to verify insurance coverage. Many organizations have a system, such as contacting the insurer 30 days, 14 days, and then 7 days before the policy is set to expire. If you have not been able to maintain a consistent routine like this, it’s something that you may need to consider.
You Discover that Most of Your Accounts are Uninsured or Underinsured
Suppose you have recently audited your contractor accounts and discovered that the majority of your contractors are either uninsured or underinsured. If that is the case, this is another sign that you need to assess your current COI verification strategy.
There could be a few reasons that these accounts are not in compliance with your organization’s requirements. Some contractors may not feel they have the volume of work necessary to require staying in compliance. Some others may not be working with your organization any longer, and others may have neglected to send in a renewal COI. It’s helpful to identify the most common underlying reason and look for ways to address recurring issues.
Most of the Contractors You are Dispatching are not Compliant
When one of your organization’s customers has a need that must be met by someone in your contractor network, you would dispatch that contractor to their location. But what if most of the contractors you are attempting to dispatch are not in compliance with your requirements? This is another sign that it’s time to be more proactive about your compliance plan. Being forced to make the decision between serving your customers and providing a safe and compliant network is not a decision you want to be forced to make.
Stay Proactive with the Right Compliance Partner
Working with an experienced compliance partner like PlusOne Solutions helps you turn contractor compliance into one of your organization’s strengths – instead of an ongoing challenge. Contact us today to learn more about how our compliance services can help 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 contractor and vendor relationships while creating safer work environments. To learn more, visit https://www.PlusOneSolutions.net.
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