Tracking COIs by hand is a time-consuming process. Some contractors may skip this step altogether. Therefore, it is important to request Certificates of Insurance for vendors. These certificates keep contractors updated about insurance coverages.
Why is Tracking COIs Important?
Because a COI contains all the information about a policy and policies change frequently, it is important to keep track of COIs by using software like AlphaCOI.
Any time a contractor contracts with a vendor, they are exposed to risk, but by giving them Certificates of Insurance, contractors can shift the risk back to the vendor.
Asking a vendor whether they have insurance isn’t enough; you need to get Certificates of Insurance (COI) from every vendor and ensure everyone involved has coverage. Oftentimes, insurance is provided through either general liability insurance or workers’ comp insurance.
What Does General Liability Insurance Cover?
General liability insurance covers specific exposures and differs based on what coverage the vendor needs for their business operations. Contractors must be clear about the level of coverage that vendors need to carry for projects and ensure that they have this coverage.
A lot of the time, vendors do not have the coverage a contractor needs. If a vendor does not have the required coverage, a COI will verify they obtained the proper coverage to protect themselves and their contractor against the risks associated with their operations. A COI is important in these situations because it confirms the vendor complies with their contract.
What Does Workers’ Compensation Insurance Cover?
Workers on a job site are covered by workers’ compensation, but the big questions are whose workers they are and who pays in the event of an injury?
If a vendor brings workers to the job, they are responsible for their own workers' compensation insurance. If they don't have workers' compensation insurance, the contractor's workers' compensation insurance kicks in. This increases workers’ compensation premiums for contractors.
What Benefits are there in Tracking COIs?
AlphaCOI’s Certificate of Insurance software helps keep contractors from having to pay for an accident on site caused by a vendor’s employees.and increase compliance, mitigate risk and have peace of mind.
Certificate of Insurance Tracking. Simplified!
About AlphaCOI (www.alphacoi.io): AlphaCOI is a convenient - easy-to-use, low-cost, SaaS Compliance Certificate Platform for managing and tracking requisite certificates of insurance(COI) across industries. The platform enables ACORD-type form uploads and provides the crucial notifications needed to ensure that they stay up to date and subscribers remain free from audit risk. The platform was developed by Avid Compliance, a Leesburg Virginia- based compliance management company aimed at eliminating the administrative burden of managing compliance and risk for its subscribers. The company does not sell insurance or ancillary products. The platform’s compliance and risk avoidance tools is all that we sell. The platform was created by contractors for contractors. The platform has modules for contractors, property managers and insurance salespersons and brokers. Click here for more information.