10 reasons why COI tracking is essential

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.

3. Brings Automation Along With It

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.

4. Makes Tracking Compliance Easier

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.