A faulty vendor’s insurance or signs of inconsistent incompliance may cause damage claims to the hiring party. That’s why you must ask for proof of certificates of insurance (COIs) but, most importantly, have insurance tracking for COIs to ensure compliance.
The process of tracking the COIs is, however, not easy. It involves collecting the COIs, reviewing them, and following up with the vendor to ensure compliance regulations are met, to mention but a few tasks. Therefore, this process can’t possibly be done manually. It’s time-consuming, and recording such data on excel spreadsheets and notes increases the chances of human error. As mentioned at the start of the article, faulty third-party insurance can be pretty expensive, and it falls squarely to the hiring party.
Luckily for you, technology has provided a certificate of insurance tracking software that automates the process of COIs tracking. This article will look into what a certificate of insurance tracking software is and how you can benefit from using it. Keep reading to learn more.
What Is A Certificate Of Insurance Tracking Software (COIs)?
A Certificate of Insurance Tracking is a technology that helps the hiring party ensure compliance by tracking third-party certificates of insurance. The technology can track different types of third–party vendor insurance documents, including:
- Indemnification agreements
- Insured endorsements
- Notices of penalties
- Citations and
- Notice of penalties, if any
COIs tracking software automates the tracking process, hence it reduces the time and effort spent by the manager or contractor to ensure compliance. Therefore, the contractor can attend to other matters that affect the business’s performance. Additionally, using the software reduces the likelihood of human error, such as missing any steps in the tracking process. Most importantly, COIs tracking software ensures compliance by the company, reducing the risks of any claims and litigations due to faulty vendor insurance.
These benefits and more have been discussed extensively in the section below.
1. The Software Is More Accurate
You know that the main reason for using COIs tracking software is to ensure compliance. Without the tracking software, your business could use a certified insurance auditor. However, the accuracy of human labor doesn’t halfway match that of automated tracking software.
Errors such as expired policies not being updated increase the chances of your company being sued for non-compliance, and you may lose money while settling the claims. However, with the COIs tracking software, the technology is fitted with sufficient bandwidth to scrutinize all documents while ensuring all requirements are met per compliance regulations. This helps reduce the chances of errors and resultant lawsuits.
2. It Helps Reduce The Risks Of Claims
It’s not enough to collect your vendors’ certificates of insurance. As the business owner, manager, contractor, or franchiser, you have to ensure that the vendor’s insurance meets the compliance regulations.
COIs tracking software comes in handy since it looks through all the key details of the coverage, possible exclusions, and any negligence by the third party. This ensures that your business isn’t exposed to any direct liabilities or claims that may jeopardize your business.
3. The Software Helps To Save Time
You can use COI tracking software to automate tasks such as:
- Collecting the certificates- You can use an app where vendors can upload their documents and information. This helps to save your time and that of the vendor.
- Reviewing the certificates of insurance
- Renewing the certificates of insurance
- Compiling a compliance report as per schedule. It can be monthly or annually, depending on the agreement.
With the tracking software automating most of the tasks, it also means that there’ll be less paperwork, which helps ensure a system of order in the office.
4. It Leads To Enhanced Vendor Experience
With the COIs tracking process automated, the vendors have an easy time ensuring compliance. For example, the tracking software allows you to send emails to your vendors requesting documents of compliance. The technology also provides a link where you can request your vendors to upload the documents.
Therefore, you have a reminder for your vendors to comply, and the technology makes it easy for the vendors to comply. Overall, the vendors’ experience is enhanced.
5. Increases Productivity
With a lot of work being automated, the saved time can be used to attend to other pressing business tasks that keep your team members productive. Particularly for big organizations such as hotel enterprises, there are a lot of insurance documents that need to be collected, reviewed, and tracked for compliance. When this work is done manually, for example, data entry, it consumes time and effort that would have otherwise been spent on other productive things that drive profitability for your business. Therefore, using the COIs tracking software frees your employees, increasing their flexibility, energy, and time to be more productive.
6. COIs Tracking Software Streamlines Communication
Throughout the process of tracking the certificates of insurance, the tracking software allows seamless communication between the business owner, the insured vendors, and the agents that communicate on behalf of the vendor. For example, the vendors’ agent will list the requirements of compliance from them and you, the business owner will ask the third-party vendor to provide the needed documents as proof of compliance for review and tracking.
Therefore, technology allows communication to be consistent without much monitoring and management. In turn, communication allows more collaborations from the teams involved. At the end of the day, each party performs their tasks with ease.
7. It Offers Greater Insights
The technology collects real-time data and stores it for tracking. You can analyze this data and come up with insights that inform important decisions that affect the performance of your business. The best part is that the data is updated constantly. Therefore, you don’t have to wait for monthly or annual reports to make any necessary adjustments. This helps prevent any delays in decision-making that may translate to losses.
8. It Has A Centralized Database
COIs tracking software has a centralized database that stores all insurance certificates, compliance requirements information, vendor guidelines, and endorsements. Whatever information you need from the database can be retrieved using a search command. You just have to search the document by say, the name of the vendor, field of business, or compliance status.
Furthermore, if proof of documents or compliance is needed, the data can be downloaded from the database. This centralized database system helps maintain order with the COIs tracking. It’s also easier for newbies to navigate the tracking software.
9. COIs Tracking Software Automates RFPs
RFP is the acronym for Request for Proposal. A request for proposal is a business document that’s used to announce a project. The document describes the project to invite bids from qualified contractors to implement the project idea. Most government and private organization projects are announced through RFPs.
With the COIs tracking software, you can automate the process of bidding for an RFP. Advanced COI tracking technology allows you to advertise the project to vendors within your area. Additionally, the technology uses algorithms to match you with the best possible vendor that can complete the bid to your specifications. You can also use the software to chat with other potential bidders to examine their expertise.
This automated process helps your business save time and money that would have otherwise been used to source the best contractor to complete the project.
Purchasing A Certificate Of Insurance Tracking Software
Due to an increase in demand for COIs tracking software, there has been an increase in providers offering the tracking service. That equally means that hiring poor services or cons has also increased. Therefore, when looking for good insurance tracking software for your business, consider the following:
- Good COI tracking software should meet the specific needs of the business and that of the team. That’s the vendor, business owner, and vendor’s agents.
- The best tracking software should have the ability to read both typed and handwritten certificates of insurance.
- The technology should also be able to verify compliance of COIs as per the regulations set by your specific state. It should therefore have regular updates on state policies and other requirements.
- Go for COIs tracking software that’s backed by a team of insurance experts. Technology fails, and when it does, you would need help from professionals.
Does your current tracking software have the capacity to expand? When running a business, you’re always expecting it to grow. As such, whichever COIs tracking software you decide to use for your business, be sure it has room for growth to accommodate the business when it expands. Otherwise, you’ll be forced to go back to the drawing board when your business outgrows the certificate of insurance tracking software.
Wrapping Up
Having copies of the certificate of insurance isn’t enough. If you’re to avoid liabilities and claims, you must ensure third-party insurance is complying as the business owner. The steps taken in ensuring compliance and tracking are quite hectic. That’s why you need to incorporate a certificate of insurance tracking software.
Discussed above are nine advantages of using this software for your business. If you haven’t already purchased a certificate of insurance tracking software, you could be having compliance loopholes that may expose your business to hefty court claims. The good news is that you’re one software away from filling up such weak links. Purchase COIs tracking software today!