Why Property Managers Need to Track Certificates of Insurance & Ensure Compliance
As a property management company, maintaining diligent records of your tenants, vendors, suppliers and contractors’ certificates of insurance (COIs) can be a time-consuming and difficult task. It is tedious work to verify and keep track of when each and every certificate renews, however it should be a top priority.
Effective COI tracking is important to ensure each tenant, vendor, supplier and contractor is compliant with your insurance requirements. Property managers need to go beyond simply publishing the insurance requirements in leases or contracts and taking the insured’s word that they’re compliant. Implementing a proactive and digital approach to managing COIs is necessary to protect against potential underinsured claims, costly lawsuits, and more.
Check out the below reasons on why property managers should have a streamlined process in place to track COIs and maintain vendor compliance.
Why Property Managers Should Effectively Collect & Accurately Review COIs
Protecting a property with the correct types of insurance falls within the property manager’s job description and failure to do so is a very serious risk to be avoided, at all costs. Each property or lease that you manage will require specific insurance coverage’s to be in place. Many times, the tenants, vendors, and contractors will not carry the required types of coverage specified in your agreements.
COIs must be collected and reviewed by everyone leasing or working on your property to ensure appropriate coverage’s are in place, insureds are compliant, and your organization is protected from exposures associated with their procedures. Accidents and damage occur and if tenants, suppliers, contractors, or vendors do not carry the right kind of insurance, it can be an expensive hassle for everyone involved – mainly the property owner. Maintaining records of COIs from each and every party involved will also greatly reduce your general liability insurance premiums.
Property managers should request a COI from each tenant, supplier, contractor or vendor prior to the beginning of work and/or the start of a contract. Renewal certificates should also be collected and verified annually. Insurance policies are also consistently updated, changed or cancelled during the lease or agreement, so having an effective tracking process helps property managers acknowledge all changes, updates and cancellations to guarantee continuous compliance.
How to Streamline & Automate COI Tracking to Guarantee Compliance
Property managers continue to manually collect and track COIs which can be time-consuming and cause costly errors. Luckily, certificate of insurance tracking software can replace the excel spreadsheets, paper printouts, outlook reminders, and file cabinets that are wasting your time and resources.
SmartCompliance helps property managers manage the everyday tasks and associated stress of tracking COIs, as well as protects the company against claims and costly litigation. Our COI compliance software manages everything from vendor contact information to certificate collection to compliance reporting, so your company can ensure end-to-end compliance. Request a free demo today to get started!