Many organizations rely on subcontractors and vendors to provide essential services as part of running their business. Adequate insurance coverage is typically top of mind with third parties, but expiring COIs is often overlooked or event forgotten about.
That’s why it’s important to validate that all of your contractors, subs, vendors, and suppliers keep their COIs current. Insurance certificates typically expire annually, so it’s important to check in with them regularly to make sure they have renewed their coverage.
Why is it important to track COI expiration dates?
- Reduce risk of liability: If a subcontractor or vendor doesn’t have adequate insurance coverage, or if their insurance certificate has expired, you could be held liable for any damages or injuries that occur. For example, if a subcontractor’s employee is injured on your job site, and they don’t have workers’ compensation insurance, you could be responsible for their medical bills and lost wages.
- Comply with regulations: Many industries have regulations that require businesses to hire subcontractors and vendors with adequate insurance coverage. For example, construction companies and government contractors are often required to have COIs from their subcontractors.
- Streamline the claims process: If a claim is filed against a subcontractor or vendor, having a current COI can help to streamline the claims process. By providing their insurance company with a copy of the COI, you can help them to quickly and efficiently process the claim.
How to track COI expiration dates
There are a few different ways to track COI expiration dates:
- Keep a spreadsheet of all of your subcontractors and vendors, along with their COI expiration dates. This can be a simple way to track COIs, but it can be time-consuming to update the spreadsheet regularly.
- Use a dedicated COI tracking software. Software like COI Pro offers allows you to digitally manage all of your COIs, and it can automatically send reminders to subcontractors and vendors, as well as their insurance agents when their COIs are about to expire.
- Hire a third-party vendor to manage your COIs on your behalf. This can be a good option for businesses that don’t have the time or resources to track COIs themselves.
Tips for ensuring that subcontractors and vendors keep their COIs current
Here are a few tips for ensuring that your subcontractors and vendors keep their COIs current:
- Require all subcontractors and vendors to provide a COI before starting work. This will help to ensure that all of your contractors are properly insured before they begin working on your behalf.
- Set up a system for regularly reviewing COIs. You can do this manually, or you can use a dedicated COI tracking software.
- Send reminders to subcontractors and vendors when their COIs are about to expire. This will help them to avoid any gaps in coverage.
- Keep a copy of all COIs for your records. This will be helpful if you ever need to file a claim against a subcontractor or vendor.
By following these tips, you can help to ensure that your subcontractors and vendors keep their COIs current and that you are protected from liability. Want to learn more? Schedule a demo today!