3 Ways Leveraging Certificate of Insurance Tracking Solutions Can Minimize Litigation Impact
November 3, 2023
In today’s legal landscape, enormous verdicts continue to make headlines, and it’s imperative for risk managers to equip themselves to counteract these challenges.
The recent case of a bunk bed manufacturer slapped with a staggering $787 million verdict, following the tragic death of a two-year-old child caught between a ladder rung and the bed, serves as a stark reminder of the escalating trend of nuclear-level verdicts, especially wrongful death cases.
This phenomenon has transformed from a rare occurrence to a frequent concern over the past decade, affecting various sectors and causing risk professionals to take a diligent eye over all insurance documents.
In this context, risk managers must take proactive steps to minimize the impact of potential litigation. Failing to do so can result in unpleasant surprises during trial proceedings, with verdicts reaching as high as $400 million.
To help organizations navigate this challenging landscape, here are three crucial strategies and solutions:
Understanding the Risk
Vendor Certificate of Insurance tracking solutions can provide risk managers with a comprehensive overview of their relationships with their vendors.
By utilizing these solutions, organizations gain insight into third-party insurance policies, encompassing details such as policy expiration dates, coverage limits, and adherence to contractual insurance obligations.
This heightened awareness allows organizations to proactively manage their compliance obligations and understand where they may be vulnerable to litigation risks.
Standardize Document Preservation and Investigation Procedures
Certificate of Insurance tracking solutions enable organizations to standardize their document preservation and investigation procedures.
These systems help in maintaining a consistent record of certificates of insurance, endorsements, and policy documents.
By systematically preserving these records in a centralized platform, organizations minimize the risk of spoliation allegations and maintain a transparent and accountable approach to handling potential litigious claims.
Maintain Open Communication
Certificate of Insurance tracking solutions facilitate seamless communication with third-party vendors.
Risk managers can use these solutions to verify third-party network compliance and guarantee that their network is adequately protected.
In conclusion, the surge in nuclear verdicts poses significant challenges for risk managers and insureds across industries.
By enhancing awareness of insurance coverage, streamlining document preservation and investigation procedures, and facilitating effective communication with insurers, organizations can proactively address the challenges posed by the surge in nuclear verdicts.
COI Tracking solutions provide risk managers with the tools they need to protect their organizations from the disruptive effects of potential litigation, ensuring a more secure and legally compliant business environment.
“These solutions not only offer proactive risk mitigation but also streamline compliance and claims processes. They empower organizations to manage their insurance obligations efficiently and reduce the likelihood of unfavorable litigation outcomes.” Devon Wijesinghe President of Evident.
Certificate of Insurance Tracking Solutions for Litigation Minimization
Evident offers a swift solution for evaluating Certificates of Insurance, ensuring that your third-party vendors adhere to your compliance standards within seconds.
Our platform prioritizes simplicity, allowing you to effortlessly navigate the dashboard and identify various key components:
- Compliant COIs with more than 30 days until expiration.
- Compliant COIs with 30 days or less until expiration.
- Non-compliant COIs.
- Pending and newly added COIs.
Additionally, Evident provides a comprehensive subcontractor database with the following details:
- Expiration dates.
- Compliance status, categorized as non-compliant, compliant, or pending.
- Verification stage progress, including response status and completion.
When you click on a specific vendor, you can instantly determine their compliance status. Leveraging advanced technology and data, we offer in-depth insights into areas of non-compliance, enabling you to grant exceptions with a single click.
To set up your system, you’ll need to configure your decisioning criteria. Evident allows you to create an unlimited number of groups, accommodating variations in requirements across your vendor network. Within each group, you can customize coverage types and specific criteria.
Furthermore, our platform supports the customization of programmatic emails, enabling you to incorporate your branding for a personalized touch.
Evident’s capabilities in verifying, automating, and mitigating third-party risks empower enterprises to enhance efficiency, security, and compliance. Gain unparalleled visibility into your third-party network and elevate overall compliance. Join the ranks of thousands of satisfied users and some of the world’s largest organizations who rely on Evident. Schedule your demo today to experience the difference.