At COI Pro, we hear from numerous organizations that are going through a digital transformation. Part of that transformation is investing in technology to manage their insurance certificates. In several cases, an office administrator who has multiple responsibilities in the organization is tasked with driving their first technology evaluation project. The need for software has been discussed, but there’s no clear owner or executive buy-in. Because there’s no consensus, the project drags on and ultimately the organization chooses not to invest in technology, continuing their dated process of managing certificates manually on a spreadsheet or even in binders.
Do our third parties have the required coverage to work for us?
The risks associated with not investing in software to manage insurance certificates for contractors, vendors, suppliers, and tenants are high and should not be taken lightly. Without proper tracking and management, businesses are exposed to a number of potentially expensive liabilities. For starters, without an automated system, it can be difficult to ensure that all contractors, vendors, suppliers, and tenants have the necessary insurance coverage. This can lead to unexpected costs if a claim is made against the company. Additionally, manually tracking COI expiration dates of can be time-consuming and may lead to lapses in coverage, leaving businesses vulnerable to a variety of claims.
Do all of our third parties have coverage that is current?
Moreover, without software to manage insurance certificates, your third parties will not have access to features like upcoming expiring policies, which is one of the most common mistakes, often which is just an oversight by contractors and vendors. Finally, businesses that do not invest in software to manage COIs may also be missing out on potential opportunities. Automated systems can provide businesses with insights about their third parties (e.g., contractors with expired coverage, etc), allowing them to make more informed decisions when entering into new contracts or considering replacing a current contractor or vendor.
In conclusion, all organizations should seriously consider investing in software to manage their insurance certificates and weigh the potential risks and costs associated with doing nothing. Not only will it help to ensure that all contractors, vendors, suppliers, and tenants have the necessary coverage required by an organization to do work on behalf of them, but it can also help to reduce costs, increase efficiency, and provide insights into potential opportunities.
Want to learn more? Schedule some time with one of our Texas-based insurance experts.