Mitigating financial liability is best achieved by tracking insurance for your extended workforce. Insurance compliance software is one option, but is it the best choice for your organization?
It is a known fact in the risk management field that one of the most effective ways to transfer financial risk is tracking insurance for your contractors or vendors. By collecting and verifying a certificate of insurance (COI) you can make certain that they are meeting their contractual requirements, which will protect both of you if there is an accident. Luckily, there are many types of solutions to help you with your COI tracking needs. COI tracking solutions not only run a better COI management program than in-house teams, but usually these services are more affordable than if you were doing it yourself. Because there are several COI tracking options to choose from, it is best to evaluate the two main solutions, insurance compliance software versus services. Keep reading to find out which one is right for your organization.
Knowing the difference between insurance compliance software and services for COI tracking is important when trying to solve the specific needs and pain points of your organization.
COI Software is typically a cloud-based program that will automate many steps required for the collection, review, storage, and reporting of COI compliance details. Automated email notices will request COIs leading up to expiration. Once COIs are collected, they are then uploaded into a repository. The insurance compliance software will help to identify most areas where the COI is deficient or missing your requirements and input the data into the program with little manual review. If your requirements are not met, you will work with your contractor, and perhaps, the insurance agent to help them understand the requirements and have them submit a revised COI. The software will provide reporting for compliance and upcoming expirations to help you manage the process.
COI Services often include the basics that COI software provides but also the full management of the process, including the handling of inbound and outbound phone calls, working with the contractor, insurance agents, and carriers to understand the insurance requirements, review of more complex documentation such as endorsements and policy pages, assistance with setting up a program, and regularly scheduled meetings to ensure you are meeting your compliance and risk management goals.
There are strengths to each type of solution, but your choice should depend on what your objectives are. Because COI tracking generally is there to transfer financial risk, it is best to evaluate what types of risk you may encounter as well as what efficiencies may be gained from each solution. Some questions you should ask yourself to help evaluate your needs are:
Once you’ve evaluated your risk thresholds and any efficiencies that may or may not be secured by each solution, you can weigh your options. Below are some comparisons for each:
|COI Software||COI Services|
Deciding to outsource your COI tracking and with which solution is no small decision. It takes time to evaluate how your current program is doing, what your risk thresholds are, and how you would benefit from each offering. No matter what your choice is, taking the time to improve your COI tracking process will provide many benefits and show due diligence. Contact us today to learn more about how our COI Management services can benefit 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 our website.
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