SmartComplianceSmartComplianceSmartComplianceSmartCompliance
  • Who We Serve
    • Risk Managers
      • Commercial Certificate of Insurance Tracking
      • Commercial Certificate of Insurance Issuance
      • Residential Proof of Insurance Tracking
    • Insurance Brokers & Consultants
      • Commercial Certificate of Insurance Tracking
      • Commercial Certificate of Insurance Issuance
    • Insurance Carriers & Providers
      • Residential Proof of Insurance Tracking
    • Property Managers
      • Commercial Certificate of Insurance Tracking
      • Residential Proof of Insurance Tracking
    • TPAs
      • Commercial Certificate of Insurance Issuance
    • Self-Insureds
      • Commercial Certificate of Insurance Issuance
    • Service Providers
      • Commercial Certificate of Insurance Issuance
  • Solutions
    • Commercial Risk Management Solutions
      • Certificate of Insurance Tracking
      • Certificate of Insurance Issuance
    • Residential Risk Management Solutions
      • Proof of Insurance Tracking
    • Partnership Solutions
  • Resources
    • Case Studies
    • News and Blog
    • Our eBooks
    • Newsletter Signup
    • Press
    • Frequently Questions
  • Contact
  • Login
  • Get Started
Get monthly updates on the latest insurance technology news and developments.
SUBSCRIBE

The Ultimate Guide to Certificates of Insurance (COIs)

September 5, 2019 | By SmartCompliance | Industry Highlights
Share this post   

The Ultimate Guide to Certificates of Insurance (COIs)

Are you confused or even intimidated by Certificates of Insurance (COIs)? Good news, you’re not alone. Managing COIs is time-consuming and complicated if you don’t have the proper systems in place.

We’ve put together a guide to certificates of insurance to ensure vendor compliance and remain protected. This guide will take you from zero to COI hero in no time.

What is a Certificate of Insurance (COI)?

Certificates of insurance are documents that provide all the important details of an insurance policy, it’s a reliable source of information that can even provide proof of insurance coverage. A COI summarizes the coverage terms, conditions, and duration of the policy at the time of certificate issuance.

The snapshot of the policy on a single document makes it easier for the certificate holder to review and store. Most often, opposite parties in an agreement, contract, or transaction request certificates to make certain the other party has the appropriate coverage, reduce exposure to risk, and protect against third-party liability.

Types of Certificates of Insurance

A majority of insurance companies or brokers provide COIs based upon the standard ACORD 25 form. The ACORD 25 is the basic certificate used to represent any of the five types of insurance policies. These forms provide information about the coverage, such as:

  • Policyholder’s Name
  • Policy Effective Date
  • Type of Coverage
  • Policy Limits
  • Special Insurance Requirements

Tracking a certificate of liability insurance will help protect the project owner and extend Additional Insured status to the manager. Collecting and reviewing this type of document is important to transfer the risk from the owner to a third-party vendor. Review the following fields on the COI to ensure your third parties’ coverage is correct:

  • Additional insured status extended to the right entity names
  • Waiver of Subrogation
  • Coverage is “Primary and Non-Contributory”
  • Description of what the vendor is working on

How to Review a Certificate Like a Pro

It’s critical to review all COIs provided to you by your insured for accuracy and conformance to the specified insurance requirements. This initial review can minimize the potential of disputes, in the event of a claim.

Here are some important areas to check on when reviewing the COI:

  • The insured is using the proper form for the COI, like the ACORD 25.
  • The company name on the COI is the same as the one listed on your contract.
  • Your company is named as the COI holder.
  • The policy has been issued by a trustworthy insurer with good financial ratings.
  • The types and limits of insurance listed are the same or more than what is required under the contract.
  • The policy numbers should be listed.
  • The dates on the coverage are enough for the required work. (Make sure if the policy expires during this time range to request a new COI before the other expires)
  • The “Notice of Cancellation” is acceptable.
  • All specific insurance requirements are implemented.

COI Tracking & Management

Many companies have minimal COI collection and tracking processes at best, and non-existent, at worst. Between 36% to 53% of small businesses are involved in at least one litigation in a given year, and 90% of all businesses are engaged in litigation at a given time, which begs the question “Why?”

To prevent these expensive claims and lawsuits, it’s imperative to implement a COI management process and ensure vendor compliance. Insurance professionals who handle several hundred COIs and other vendor credentials don’t have the bandwidth to maintain compliance standards, track expiration dates, and still complete their other job duties.

That’s where technology comes in. Certificate of insurance tracking solutions, like SmartCompliance, can help manage all aspects of the COI process and reduce the chance of assuming unintended risk.

With our platform, your company can manage COIs and endorsements in one location, automate collection, ensure requirements are met, and end manual data entry. Upload, organize and search endorsements or COIs to guarantee insureds are compliant and ensure subrogation coverage for your company. Request a free demo today to get started.

Related Posts

The Importance of Tracking COIs for Every Subcontractor

How Does Your Company Compare? The Value of Benchmarking Your Risk Management Program

Related Posts

  • A desktop computer at a desk with a graph on the screen showing increased compliance.
    Customer Stories
    March 6, 2019

    How to Increase Client Compliance by 60% With COI Tracking Software [Case Study]

  • A woman working on a laptop with a certificate of insurance tracking software.
    Industry Highlights
    July 12, 2019

    COI Tracking Software vs. Manual Tracking Methods

  • A man standing in front of a projection of a dollar bill with an arrow that is showing the economy is down.
    Industry Highlights
    April 1, 2020

    Why COI Tracking is Important when the Economy is Down

  • A person asking questions at a laptop with a workers' compensation claim form.
    Industry Highlights
    April 13, 2020

    7 Questions Employers Have about Workers’ Compensation Insurance

  • A person signing their business auto insurance policy with their insurance agent.
    Industry Highlights
    May 4, 2020

    Guide to Understanding Your Business Auto Insurance Policy

  • A person holding money for non-compliant vendors.
    Industry Highlights
    May 11, 2020

    The Right Way to Withhold Payment from Non-Compliant Vendors

  • A scale weighing the advantages and disadvantages of self-insured business.
    Industry Highlights
    June 1, 2020

    Advantages and Disadvantages of Self-Insured Business

  • A laptop and a mainframe computer, a laptop and coins, and a graph with an upward trend. Titled: artificial intelligence, machine learning, and the internet of things, respectively.
    Industry Highlights
    June 19, 2020

    Three Benefits Insurtech Has Brought to the Insurance Industry

Talk to Sales: (888) 818-4651
Talk to Support: (866) 610-7594

NEWSLETTER SIGNUP

OUR SOLUTIONS
  • Commercial COI Tracking
  • Residential Renters Insurance Tracking
  • Commercial COI Issuance
RESOURCES
  • Case Studies
  • News & Blog
  • About Us
GET IN TOUCH
  • Contact
  • Request A Demo

SmartCompliance provides insurance tracking and compliance management solutions to commercial and residential insurance professionals. Our self-service and full-service solutions automate certificate of insurance or proof of insurance renewals, eliminate manual data entry and help ensure end-to-end compliance.

Copyright © 2021, SmartCompliance, Inc. All rights reserved | Privacy Policy | Terms of Use
  • Who We Serve
    • Risk Managers
      • Commercial Certificate of Insurance Tracking
      • Commercial Certificate of Insurance Issuance
      • Residential Proof of Insurance Tracking
    • Insurance Brokers & Consultants
      • Commercial Certificate of Insurance Tracking
      • Commercial Certificate of Insurance Issuance
    • Insurance Carriers & Providers
      • Residential Proof of Insurance Tracking
    • Property Managers
      • Commercial Certificate of Insurance Tracking
      • Residential Proof of Insurance Tracking
    • TPAs
      • Commercial Certificate of Insurance Issuance
    • Self-Insureds
      • Commercial Certificate of Insurance Issuance
    • Service Providers
      • Commercial Certificate of Insurance Issuance
  • Solutions
    • Commercial Risk Management Solutions
      • Certificate of Insurance Tracking
      • Certificate of Insurance Issuance
    • Residential Risk Management Solutions
      • Proof of Insurance Tracking
    • Partnership Solutions
  • Resources
    • Case Studies
    • News and Blog
    • Our eBooks
    • Newsletter Signup
    • Press
    • Frequently Questions
  • Contact
  • Login
  • Get Started
SmartCompliance