Contractor certificate of insurance tracking may feel like an inconvenient necessity or of little value.
Certificate of insurance tracking may feel like an inconvenient necessity or of little value. However, there are ways to make it work for you and not against you. Understanding soft and hard benefits will help you maximize the value to be found in the process.
When a contractor or vendor is representing or providing services and work for your company you have an interest in how well they perform. You expect that they will provide quality work, timeliness, or good customer service. Businesses who are uninsured or underinsured for their field of work typically cut corners in other areas of their business, including their work habits.
Having a compliance program, including tracking certificates of insurance is a good way to identify companies that you will want to work with and who will better represent you.
Whether it is services, logistics or maintenance that you’re bringing to the table, potential partners and customers who can help you build your business are highly concerned with compliance. They know that contractually requiring proper insurance coverage and tracking certificates to confirm coverage is highly recommended by Risk Managers because it is an extremely effective tool to transfer financial risk.
By each party carrying insurance coverage in the event of an accident, it shifts the brunt of liability and associated costs into the hands of insurance carriers at a small cost. When seeking to gain a potential partnership, you can not only exhibit what services, work, or solutions you have to offer but how well you look at all aspects of business, including risk.
Accidents are rare but do happen from time to time. By tracking certificates of insurance, you can be ahead of the game. We all know what it is like when something unexpected happens at work and the associated stress involved.
If your team has done their job by properly tracking COIs, you will be ready to provide a current certificate with the needed information for your claims representative or legal counsel to file a claim to the contractor’s insurer. Without a COI, it may be difficult to work with your contractor to obtain the needed information for their carrier or they may be uninsured or underinsured without your knowledge.
Whenever there is an accident caused by a contractor or vendor there is a high likelihood of loss for your company, whether it is by making a claim on your company’s insurance or paying out of pocket. If you have a COI on hand, you are more likely able to shift associated costs to your contractor’s carrier rather than paying for the accident or risk increasing your insurance premiums if you choose to submit a claim to your own carrier.
Insurance carriers like to provide coverage to accountable customers. By tracking certificates of insurance, you not only have more options to cover losses, but you can also show your carrier that you are taking extra steps to prevent loss, which will reduce your premium further.
By realizing the full potential behind tracking certificates of insurance, you soon learn that there are many advantages that can be utilized for you and your company. Contact us today to learn more about the contractor risk management solutions we have to offer.
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.
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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