A big part of corporate risk management is insurance compliance. You want to reduce your uninsured and underinsured exposure as much as possible, to protect your business from expensive claims. However, just collecting certificates from vendors isn’t enough; you need a way to track compliance and identify potential deficiencies.
You could make an in-house solution, but this is usually both expensive and impractical. The administrative hassles involved means that you will be investing much to get half-decent results. Because of this, most companies simply outsource their insurance tracking.
Hiring an insurance certificate tracking service such as versitrax.com means that you take advantage of their expertise, economies of scale, and sophisticated systems. But since it’s your company’s compliance on the line, you should choose a provider carefully. What do you need to look for?
1. Expertise – Your service provider should have plenty of industry experience. They should be familiar with different coverage types, limits, effective dates, and so on. Above all, they must be able to accurately and quickly verify the insurance coverage of third parties.
2. Solutions – When your certificate tracking company finds a compliance issue, they need to have a plan for resolving it as fast as possible. Non-compliant vendors should be flagged, and payment for services should be denied until compliance is secured.
3. Control – All information should be contained in a secure database that you can access easily. The service provider should fully document its operations, and provide reports. This allows you to audit performance as necessary.
4. Flexibility – While this is less important than the previous criteria, it’s helpful to choose a vendor without a lengthy contract period. Companies that have to earn your business every month are usually more reliable and experienced, so you can count on them to provide results.
COI compliance shouldn’t be taken lightly. Without an effective compliance solution, your business may find itself faced with costly litigation. Make sure that you have the right partner.Tags: Certificate Tracking Service, Insurance management system, insurance tracking