Verifying and improving third-party insurance coverage is increasingly important to mitigate risk.
Basic principles to improve third-party insurance verification
Benchmarks for compliance, response rates, coverage
Step-by-step guide to achieving better COI verification
While the range is wide and some companies are achieving substantially higher rates, the average compliance rate for third parties across all requirements is 25%.
Current vendor insurance practices are failing despite significant expense and effort, putting companies at risk for losses and liability in case of a lawsuit against a third party. Without verifying third-party insurance, businesses of all sizes – and more often the enterprises with “deep pockets” – can be exposed to immense legal fees regardless of the claim’s merits.