10 reasons why COI tracking is essential
Handling compliance management is vital for any business. Especially when projects are inherently risky, with multiple parties involved and many potential hazards.
To make sure that an employee or vendor is insured, you need Certificates of Insurance. The process of collecting and reviewing the insurance certificates of the people involved in the project is called Certificate of Insurance management.
This is why risk management involves tracking Certificates of Insurance (COIs) and why COI tracking is essential for business.
There are many benefits to having a comprehensive Certificate of Insurance management in construction projects. In this article, we are going to focus on the most important benefits that a correct and comprehensive COI Tracking system brings to your construction projects.
COI Tracking: 10 Benefits of Comprehensive Certificate of Insurance Management
1. Reduces Legal Risks
Lawsuits can be devastating for a company’s reputation and bottom line. When faced with a lawsuit any money that you are spending in legal fees is less money you can spend in your company. With a compliance management system your worry about potential lawsuits lowers dramatically, because you can easily generate graphics and reports that give an accurate picture of the compliance situation at hand.
2. Helps Your Company’s Reputation
The more your company maintains compliance the better reputation you’ll have. This includes both the reputation of your customer base and your employees. By using compliance management software, you can ensure your records are clean when customers research your business. Customers only want to work with trustworthy organizations, which is why a compliance record will boost your reputation.
Compliance management software doesn’t just make your tasks easy it can eliminate some of them completely. A compliance management system lets you automate many time-consuming compliance-related tasks. You can even automate email sending and notifications.
Having everything in one place makes tracking compliance a breeze. Tagging by project or requirement group or compliance percentage are some of the options that a compliance management system brings to the table. Add the easy generation of dashboards and reports and you get a strong combination to help your compliance.
5. Simplifies Updates on Regulations
Compliance management software brings all your legal, regulatory and business requirements together in one centralized system. This makes tracking everything you need to maintain compliance easy. Instead of having to go through thousands of documents a simple update will keep your requirements up to date.
6. Compliance with Contractual Requirements:
Many construction contracts require contractors and subcontractors to maintain specific insurance coverage levels and provide proof of coverage in the form of COIs. Failure to comply with these requirements can lead to legal and financial consequences, including contract termination and loss of business. COI tracking ensures that all parties meet these contractual requirements, reducing the risk of legal and financial repercussions.
7. Minimize Financial Losses:
In the event of an accident or incident on a construction site, insurance can provide financial protection. However, if the responsible party doesn’t have adequate insurance coverage, the financial burden can fall on other parties, causing financial losses. COI tracking helps ensure that all parties have the necessary insurance coverage, reducing the risk of financial losses.
8. Improved Risk Management:
Construction projects involve multiple stakeholders, including contractors, subcontractors, and vendors, all of whom can introduce risks to the project. COI tracking helps identify potential risks early on, enabling stakeholders to take proactive steps to mitigate those risks. This can reduce the likelihood of accidents and other incidents, improving overall risk management.
9. Streamlined Record-Keeping
COI tracking involves maintaining accurate and up-to-date records of insurance coverage for all parties involved in the project. This can be a time-consuming process, especially if done manually. Using a digital COI tracking system can streamline record-keeping, making it easier to keep track of COIs and ensuring that all parties have the necessary coverage.
10. Improved Efficiency
COI tracking can improve project efficiency by reducing the time and effort needed to manage insurance-related tasks. By automating COI tracking, construction companies can reduce administrative burdens and free up resources to focus on more critical tasks, such as project management and quality control.
Ten Benefits, One System
SmartCompliance takes on the complexity of complying and makes it easy. These 10 reasons why it’s important to be compliant, all perish in the presence of Smartcompliance. With its Optical Character Recognition feature the digitalization of documents is reduced to seconds as does the margin for human error. No more file cabinets or spreadsheets!
See SmartCompliance for yourself by scheduling a demo with our team.