Normally Certificates of Insurance are the basic summary of whether:
- You have insurance
- What kind of insurance you have as well as the amount
The benefits of larger vendors and municipalities are that when received a subcontractors COI, you ultimately gain some confidence that if anything were going to happen with regards to their work, the contractor’s insurance would cover it. (Please make sure you are marked insured on their policy for legal aspects) Like any certificate, a proven form of insurance is a gatekeeper to many larger vendors working with you if you are a subcontractor looking for significant opportunities for growth.
Every state has its laws and legal limitations however the Certificate of Insurance is a great reassurance to carry on your day-to-day procedures utilizing your chosen third party services.
Here is where Certificates of Insurance would matter:
- If someone had undergone a fall or injury on the job
- Any damages have undergone on the location of the job
- Poor work performed where in a short period the work had faulted in some manner
As the larger representative organization holding these certificates, these are some questions to ask yourself:
- Is the amount of insurance enough for the work requested?
- Does your subcontractor need automobile insurance or workers compensation?
- Does the Certificate of Insurance dates cover the period of the future job?
Searching across a few articles with regards to Certificate of Insurance, it had seemed to be a bit of a hassle for risk managers to manage all of these certificates. In continuing my search, I have found a company that has created a program that controls all of the certificates simultaneously. Sometimes Risk Managers have to delegate a significant portion of their time cross-referencing if the documents are valid and when they expire. The program is called CTrax created by JDi Data used for Certificate Tracking Management overall. (contact: firstname.lastname@example.org / or call (954) 938 – 9100) The main benefit or “time-saver” is the capturing process where the program reads the docs for you so that it saves time to input anything manually. If there are any other companies following this same innovative wavelength, please let me know!