If your COI or compliance administrators are manually tracking insurance certificates by using accounting software and coordinating different systems with all of the 3rd party vendors and subcontractors in the pipeline, then it’s likely they are spending a significant amount of time spinning their wheels. For each COI, they have to reach out to collect, review, and monitor the status – and often multiple times per year. If that’s your company’s current process, then it’s likely that your team is wasting a lot of time that could be spent elsewhere. As someone who always keeps one eye on productivity, you may be interested in how much inefficient certificate tracking is affecting your bottom line.
The Impact of Manual COI Tracking
Here’s what we mean: For every 100 COIs that need to be tracked in your system, you could be saving 40 hours each year. To put it another way, if your company needs to track 1,000 certificates every year for your 3rd party vendors or contractors, you could be giving your team a whopping ten extra weeks of time to devote to other priorities during the year, just by switching to a more efficient certificate tracking program. Your team likely has many other responsibilities, so the amount of time they are spending on certificate tracking could be reduced so they can focus on quality of tracking in addition to other priorities.
What is the cost of doing all of the steps from collecting certificates and endorsements to data entry to reviewing and issuing renewal requests and beyond? If your team is like many COI administrators, they don’t have the capacity to be strategic in their role, and aren’t able to spend the proper amount of time on each item, which can increase the risk of errors and omissions or simple oversight, such as keeping all COIs up to date.
Simplify Tracking with Automation
On average, our customers yield a 30% total cost savings, including both the software costs and management costs.
A COI tracking software can be compared to the likes of a nail gun: your team can do their jobs with more accuracy and precision while drastically reducing time that would have been spent hammering in each and every nail, one by one. Similarly, by utilizing software that simplifies with automation, efficiently boosts the communication across teams, and allows you to quickly determine if you’re actually compliant, your team will not only save hours of time, but will also save your company from unnecessary financial risk.
Are you ready to start taking advantage of COI tracking software that was built by experienced insurance professionals and will deliver a huge ROI?
Meyer Najem Use Case
Meyer Najem, an Indiana-based general contractor specializing in healthcare and commercial construction, has been in business for over 30 years and manages 500 subcontractors at any given time. Aaron, the General Counsel at Meyer Najem, shared his experience of using myCOI:
“myCOI has definitely given us more peace of mind. The team is made up of insurance professionals which helps to take the pressure off of me. I have another 100 things I have to do outside of chasing down certificates to ensure they are compliant. Now we take HALF of the steps we use to with our manual process. It still takes work, but it’s a different kind of correspondence. If we didn’t have myCOI, we would have to invest in another person to help in the process.”
2 Reasons Manual COI Tracking Takes So Much Time
Ensuring compliance for each 3rd party or contract can take a significant amount of time – especially when the COI isn’t right the first time. There are 2 primary reasons why it can take a COI administrator up to 30-40 minutes per certificate to ensure compliance with a manual process:
- Many certificates are non compliant the first time around (70% on average–if thoroughly reviewed), and sometimes even the second time around. Therefore, the administrator has to repeat the process over and over until the individual is deemed compliant.
- The endorsements must be collected and reviewed in detail to ensure the proper entities are covered and the language within the endorsements will protect you when a claim arises.
What’s The Process And Why Does it Take So Long?
First a COI administrator must collect a certificate, review it properly, work through compliance resolution, get it stored in the proper place and complete the necessary data entry when using an accounting software to track certificates. If all documents are correct the first time, the process should take between 15-20 minutes each time a certificate is received. However, 70% of certificates received the first time are non-compliant, requiring the process to start all over. Worse yet, 30% of revised certificates are still non-compliant! According to our research study, this trend held true across all industries, with minor variation from one company to the next.
Save Costs With an Integrated Tracking Solution
Insurance Tracking Solutions exist for one reason: to help your team handle the everyday tasks of managing COIs and protecting your organization against underinsured claims, costly litigation and failed audits. Solutions like myCOI integrate directly with accounting software to automate the communication process and to centralize reporting.
The software and certificate tracking services are combined into an easy-to-use solution developed and supported by a team of insurance professionals. The product and services are built on a foundation of insurance industry logic to automate the COI communication process and ensure your organization remains protected.
Not only that, myCOI’s team of insurance professionals work directly with compliance staff and agents through the process of collecting and reviewing COIs and endorsements to ensure everything is correct and to help your organization gain peace of mind.