Ask an Insurance Expert: What is Insurance Verification?

Hi, this is Bob with Evident, and today we’re going to answer the question “What is insurance verification?”

Insurance verification is a process that ensures you’re protected by insurance in case someone else’s actions cause you harm. If you’re in business, this verification is vital to fulfill your insurance requirements and safeguard your interests.

Stay Protected with COIs

Have you ever wondered why some companies require you to have a minimum amount of insurance before doing business with them?

It’s all about protecting both you and the company in case of any unexpected incidents.

To ensure you have the proper coverage, the company may request a certificate of insurance (COI) from your insurer. A COI is a concise summary of your insurance coverage, typically only a page or two.

This way, the company can confirm that your coverage meets their requirements and gives them peace of mind.

COIs can be provided by standardized organizations like CT or ISO, or created in the insurer’s own format.

What To Do if Someone Requests Proof of Insurance

When you’re asked for proof of insurance, it’s important to make sure the details match up with your business and the person who’s asking for it.

Luckily, the proof will give you all the information you need, from the name of the insurance company to the specific coverage types and limits. You might even find some extra details you requested, like special endorsements.

Just be prepared for folks to send over all sorts of paperwork – billing statements, payment receipts, declarations pages – or even the entire policy.

Benefits of Automating your Insurance Verification Process

Organizing and verifying certificates of insurance (COIs) can be a daunting task, especially if you’re manually tracking hundreds or thousands of them.

Unfortunately, COIs are often just PDFs, making it difficult to migrate information and track compliance.

What’s more, COIs are not legally binding contracts, but simply indications that a credible source insured had coverage at a particular point in time.

With technology, however, you can automate and streamline the cumbersome process so that you can focus on what really matters – your business.

Did you know that simply buying insurance and getting a certificate of insurance (COI) isn’t foolproof?

People can cancel their policies right after obtaining a COI or just not pay their premiums, resulting in a lapse in coverage. It’s like holding a check that may bounce because the money may not still be there when you try to cash it.

Sadly, COIs aren’t going anywhere anytime soon and are still the primary method businesses use to convey insurance information. So, it’s essential to ensure that your policy is active when you need it.

The industry is exploring new ways to improve the way verification gets done. At Evident, we’re taking the “ugh” out of COIs (Certificates of Insurance) with our fully automated process.

Gone are the days of tediously combing through piles of PDFs, riskily scanning lines for discrepancies, and ultimately winding up with nonactionable data.

Instead, our streamlined system empowers you to effectively manage third-party risks and tackle that pesky sea lice head-on.

Plus, with real-time policy updates from our trusted carrier and producer partners, you’ll be in the know about any important changes that could impact your coverage. Say goodbye to COI dread and hello to effortless risk management with Evident.