Certificate of Insurance Management Solutions
March 29, 2023
Managing certificates of insurance may not seem like the most thrilling task, but it’s vital for your business’ risk management team.
As your COI needs grow, so does the importance of keeping track of them. Luckily, Evident developed cutting-edge software to guarantee that your COIs stay compliant throughout your contract with third-party vendors.
If you’re comparing a couple of COI management solutions against each other, pay attention to things like this:
- Can the solution help you with certificate of insurance issues and answers?
- Can it read both typed and handwritten COIs?
- Does it meet all the individual needs you have for your business and your compliance team?
In this article, we will walk you through:
- What is Certificate Tracking?
- Certificate Tracking Best Practices
- 3 Myths About COI Management Solutions
- Comparison Matrix of COI Management Solutions
- Certificate of insurance tracking (and how Evident does it)
What is Certificate Tracking?
Certificate tracking is a must for any company that hires third-party vendors like contractors. Knowing how to track certificates of insurance for your company is a critical skill for any risk management team member, whether you use software or not.
A certificate of insurance tracking app is a type of software program that allows businesses to track certificates of insurance for their company.
Many businesses underestimate the importance of proper COI tracking, but the consequences can be severe. Not only could you face financial losses, liability lawsuits, or legal penalties, but you may also damage your reputation as a reliable and trustworthy organization.
To avoid these consequences, it’s essential to choose a reliable COI tracking solution that goes beyond using a basic template or insurance policy software. Protect your business and its finances by investing in proper record-keeping practices.
COI Tracking Best Practices
COI maintenance and management isn’t just the responsibility of the requesting company. Insureds also need to be confident that the COI they hand to a potential partner is accurate and relevant.
The following tips are critical to avoid compliance failures that can expose you to financial liabilities like fines and lawsuits.
- Requesting companies need to know their minimum insurance coverage requirements
- Insureds should always confirm the effective and end dates for a COI before submission
- Requesting companies must be mindful of COI expirations and coordinate with insureds to receive the updated, valid COIs before the current certificate expires.
- Insureds should verify the available coverage and amount with an agent
3 Myths About COI Management Solutions
COI management solutions can streamline your process, but myths often prevent businesses from overhauling a failing system.
1. It’s Cheaper to Manage COIs Internally
If you’re assuming that you can delegate this task to a current employee and save money, think again. Yes, in the immediate short-term, you can save money. But think about how many COIs you need to manage and if this is feasible for one — or even a few — people to do properly.
- Will they engage in due diligence to follow up with insurance companies and your 3Ps to get the correct COI on file?
- Are they well-versed in insurance verbiage that can seem like a foreign language?
- With the added tasks you’ve put on their plate, can they still get their entire job description done without a decline in production quality?
Most importantly, what checks and balances will your team put into place to ensure that compliance requirements are met? Without this, you’re being penny-wise and pound-foolish — and opening yourself up to legal risks.
2. COI Management is a Set It And Forget It Solution
Can a management system make verifying and coordinating COIs easier? Yes, it can.
But it’s not going to do everything for you.
Evident can automate COI intake and even instantly screen for coverage lapses.
It can even send you notices and updates when an insured’s policy is close to expiring or doesn’t have sufficient coverage while offering alternative solutions.
3. Anyone Can Run COI Compliance
COI system won’t magically speed up the compliance process. In fact, there are two key reasons why the onboarding process can still be a lengthy ordeal. Let’s take a closer look at these obstacles and how you can overcome them to streamline your compliance process.
- Finding and purchasing the insurance itself is difficult and slow. For independent contractors to find a policy that will meet their requirements without costing more than they’ll make on the contract. They can spend weeks waiting for traditional insurance companies to provide a quote, and end up having to restart the process if the price is too high.
- When it comes to COIs, nailing it on the first try is like trying to hit a bullseye with a blindfold on. Even the most well-meaning contractors can struggle with understanding the complex details and requirements, such as double aggregates and A.M. Best ratings. And when mistakes inevitably happen, it’s back to the drawing board – and the agent – for a redo. So if you’re looking to avoid the headache of non-compliant COIs, be prepared for a game of back-and-forth with your agent.
Comparing COI Management Solutions
Are you struggling to manage the numerous certificates of insurance for your vendors, contractors, or commercial tenants?
You’re not alone.
We’ve talked to countless companies facing the same challenge. The good news is that there is a range of solutions available, from manual processes to outsourced business process solutions.
But how can you find the best option for your needs?
Allow us to guide you through the key considerations and introduce you to how Evident can fit into your compliance management ecosystem.
$10 – $20 per vendor
$10 – $30 per vendor
~$25 per vendor
|Efficiency||< 24 hours||Time to Compliance:
~ 5 Days
|Time to Compliance:
> 8 Days
|Expertise & Guidance||Yes||No||No|
Streamline COI Management and Reduce Your Risk
Working more efficiently is a goal for any business, regardless of the industry sector. If you’ve been manually tracking COIs, it’s time to automate your systems. Along with reducing your exposure to risk, automation ensures that you’re strengthening your relationship with your insureds.
More importantly, Evident’s ability to offer insurance solutions for insureds that don’t initially meet your requirements means that you’re not risking missing out on a beneficial business relationship.
From reducing downtime spent chasing COIs and verifying compliance, to speeding up your onboarding process, Evident is here to simplify the insurance verification and compliance process.