Despite how good a company is at keeping up with certificate of insurance compliance, the goal of any company should always be to improve their compliance rates—along with the tracking processes. Since each compliant COI represents protection from significant risk, the financial security of your company depends on keeping the compliance rate as high as possible.
However, the true reality is that most companies aren’t even in the ballpark of ensuring a 90% compliance on their certificates of insurance, which is the goal that companies should strive to achieve. Most executives believe that their compliance staff can spend 15 minutes on each certificate before moving on to the next. However, when this happens, there’s usually a disconnect and items may be slipping through the cracks.
Where’s the disconnect, you might be wondering? 70% of certificates themselves are non-compliant when they’re first received, and 30% of revised certificates are still not deemed compliant—especially if your compliance team isn’t spending enough time on each certificate. And if your team doesn’t know what to look for when ensuring compliance, your company is carrying an even greater risk.
Your Compliance Success Depends on Your Answers to These Questions:
- Does your company have access to compliance information in real time?
- Do you have a streamlined process that connects internal teams and contractors, subcontractors, vendors, and agents so you can stop payment if needed?
You’re wasting a lot of time in an inefficient process and leaving critically important things to chance if your team is doing it all manually and by word of mouth. What if you had a real-time compliance reporting tool that would give you an instant snapshot so that you could have accurate and current compliance data at your fingertips—and everyone else could, too?
Tightening Internal Processes to Ensure 90% Compliance
One of the main things your company can do to reach 90% compliance is to have a solid internal process in place to stop work or withhold payment. In addition, your team must have the ability to remove non-compliant subcontractors or 3rd party vendors from a job site or property. This best practice protects your business and also sets the stage for future projects. After all, if a subcontractor keeps getting paid even though they aren’t compliant, what’s their incentive for paying for more insurance? There have to be consequences in place, and all stakeholders across a company, from compliance and COI administrators to executives and field staff must have appropriate visibility.
A Use Case: Alston Construction
Alston Construction is a 30-year old construction company based in Atlanta with 11 other office locations across the nation. The company is a general contractor commercial construction management company that handles projects ranging from tenant renovation to $100M projects, but their wheelhouse is warehousing and distribution facilities.
Using myCOI’s tracking solution in conjunction with Alston Construction’s accounting system, the Contract Administrator releases payment to the subcontractor when and only when they are deemed compliant, helping the company to achieve nearly a 90% compliance rate across all offices and projects.
A Better Way to Manage COI Tracking
It can be a lot of pressure for the team in charge of certificate of insurance tracking. Shouldn’t you provide them with the support they need to make sure the job gets done right? With the right software and integrated systems, you can not only make sure every certificate gets the attention it needs, you can save your team hours of work while significantly reducing risk to your company in the process.
myCOI is a cloud-based software solution and exists for one reason: to help 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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