If your organization uses a vendor network to deliver products, conduct repairs, or provide services to your customers, there is an array of risks that you can be exposed to.
PlusOne Solutions has been providing contractor compliance solutions to organizations just like yours for years, so we understand these risks and can help you avoid them.
Data from the U.S. Bureau of Labor Statistics show that an estimated 15.5 million workers in the United States have alternative employment arrangements and are considered contractors or contingent workers. This is an increase from 14.8 million in 2005, and 12.1 million in 1995 – evidence that this steadily expanding classification of workers is here to stay.
While tapping into the skills and availability of a vendor network can be beneficial to your organization, reducing risk exposure can present a unique challenge. In this blog, we will discuss some of the contractor compliance solutions that can be utilized as a part of a complete risk management strategy.
Independent contractors may not be employees, but to your customers, they are a direct representation of your organization. This means that it is critically important that you are taking every possible step to protect your customers and your employees by conducting thorough and consistent background checks on your network.
A background check is a review of available data and public record information about an individual. The information included in a background check is referred to as “search components,” and can include services like identity confirmation, a federal and county criminal record search, a driver record search, a Sex Offender registry search, and more.
When working with PlusOne Solutions, the data that our team compiles in a background check is delivered in a report that can then be used to make informed decisions about who should be included in your network. For further reading, an in-depth discussion of our contractor background check service can be found in this blog post.
Establishing and verifying appropriate insurance coverage is a necessary part of working with a contingent workforce network. Your contractors may be able to provide a COI (Certificate of Insurance), but this does not mean that your organization is fully protected from risk. The COI needs to be reviewed and follow-up was done to ensure that appropriate coverage is in place.
As part of a contractor compliance solutions strategy, COI management can ensure that your contractors are meeting the insurance requirements of their contract or agreement, with the appropriate types of coverage, required limits, and no lapse in coverage. The COI process needs to be actively managed, which is often not possible when your employees and other members of your organization are focusing on the core functions of their respective roles. Outsourcing your COI management is the ideal solution since tracking certificates of insurance is a labor-intensive task that needs to be managed with timeliness in mind.
For any network manager, the tracking and verification of licenses is a difficult task. There are countless local and state licensing requirements, meaning that ensuring your contractors and vendors have and maintain proper licensure can become a full-time job.
Monitoring licenses is essential because it helps to ensure a higher quality of work performed for your organization’s customers, and it also helps your organization comply with some states’ requirements that only licensed contractors can perform service work.
A complete contractor risk management strategy may include these services, as well as license and credential tracking, badging, and drug testing, all of which contribute to mitigating risk for your business and network. Contact us today to discuss the service options that fit the needs of 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.
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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