February 10, 2017

How Would You Respond to Your Board When Asked About Insurance Compliance?

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As an executive or a leader in your organization, it’s up to you to ensure you provide a safe environment for your workers and that they have the proper compliance to minimize risk to all parties involved. There are many factors that can feed into risk, but compliance is a major aspect—if not the most important—of minimizing risk, for all parties involved.

While you may believe you and your compliance team are doing everything in your power to ensure compliance, the rubber truly meets the road when the topic of compliance as a percentage comes into play. If you were asked at your next Board of Directors’ meeting what your compliance rating is today, how would you respond? Would it be possible to identify a true compliance rating with complete certainty? If you’re like most organizations, that answer lies within several different spreadsheets, in an accounting system, and in the heads of your compliance staff.

Without a system to track and automate the entire certificate of insurance process for all vendors and subcontractors, that mysterious compliance number can represent a black hole—and a huge liability possibility—if steps aren’t taken. And if the Board of Directors sense that compliance is either unknown or is too low, that could cause another batch of issues altogether.

The Importance of Knowing Compliance Ratings

Unfortunately, most organizations don’t even come close to ensuring a 90% compliance on their certificates of insurance across vendors and contractors, which is the goal that all organizations should strive to achieve. When the topic of compliance is surfaced, a typical executive believes that their staff should spend about 15 minutes on each certificate, which they believe to be ample time to ensure compliance. However, with this lack of proper attention and hastiness to move onto the next certificate of insurance, there’s usually a disconnect and important compliance items may be slipping through the cracks.

On average, 70% of certificates are non-compliant when they’re first received by an organization, and 30% of revised certificates still are not compliant. This is especially true if a compliance team isn’t spending enough time on each certificate. And if your team doesn’t know what to look for when reviewing the certificates and endorsements, your organization may be carrying an even greater risk and will certainly not be able to attain or maintain that 90% compliance goal.

Always Know Where Your Compliance Stands

With certificate of insurance tracking services, your organization can keep track of compliance ratings with comprehensive reporting capabilities while also obtaining specific information regarding the reason why something is non-compliant, rather than relying on guess work. One such service is myCOI’s insurance compliance software that is developed and supported by a team of insurance experts and gives your team the help you need all while saving time and boosting your confidence in the entire compliance process. How much pressure would that take off your teams’ shoulders? How would that affect the way you address the compliance topic at your next Board of Directors meeting?

myCOI is a cloud-based software solution helps you handle the task of certificate of insurance management and to protect your company against underinsured claims, costly litigation and failed audits. The software and insurance tracking services are combined into an easy-to-use solution developed and supported by a team of insurance professionals and is built on a foundation of insurance industry logic to automate the certificates of insurance communication process and ensure you remain protected.

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