Why Are Certificate of Insurance Important?
A Certificate of Insurance (COI) is a document that guarantees that an insurance policy covers a worker. Moreover, it shows that the policy is compliant with industry regulations.
Certificates of Insurance are essential because they supply proof of existing insurance coverage. If someone is injured on a construction site, a certificate will prove they have proper insurance coverage. Without Certificates of Insurance and have an uninsured injury, it will be a nightmare for you and your company.
This article will explore five certificates every administrator needs from their subcontractors.
What are the 5 must-have Certificates of Insurance when working with a contractor?
Requirements for COIs change on a project-to-project basis. However, there are essential COIs to collect from subcontractors before they start working.
Certificates of Insurance for Workers’ compensation
Ensures coverage if a worker gets injured at the worksite.
Certificates of Insurance for General Liability
Covers quality of work during and after the project is done. It also covers losses for theft or damage.
Certificates of Insurance for Auto Insurance
Protects against claims for accidents on company vehicles.
Certificates of Insurance for Additional Insureds Coverage
Protects workers by adding them as insureds to your own coverage.
Certificates of Insurance for Excess Liability
Protects the insured and insurer against incidents not covered by other policies. This is often because the losses are massive or an underlying policy does not cover the claim.
Do I need Certificates of Insurance?
In the end, the person or company hiring you and the compliance requirements of each industry decide if you need a certificate of insurance. COIs are free; you just need to ask for it from your insurance provider.
However, whether you work in the construction industry, in transportation, or in almost any other industry, if you are a contractor, you will need a Certificate of insurance.
How do I review Certificates of Insurance?
Reviewing COIs consumes a lot of time. It requires verifying compliance for every document in every project. Certificates of insurance tracking software can help this process tremendously.
How does Software help me with Certificates of Insurance?
COI tracking software allows you to maintain digital versions of insurance documents. They can be sorted by project or by requirement, depending on your needs.
The software can also track and notify you of outdated or expired COIs. This way, you can stay up to date more easily.
Do you want to learn more about certificates of insurance? schedule a demo
