The process of tracking and managing certificates of insurance takes time and can be very complex. The amount of resources drained on this task often leaves companies asking, “Does tracking my incoming certificates of insurance really make a difference?”
Ask any CFOs, Legal Advisors, or Risk Managers this question and you will find a common answer – it eliminates risks that can have a financial impact on their company. Most companies issue contracts that contain basic information including the product/services being required, payment obligations, indemnification agreements, and insurance requirements. These insurance requirements are designed to reduce litigation and financial exposures.
If you are collecting certificates just to confirm they were received, there is no guarantee that the requirements have been procured. Tracking and managing certificates of insurance to confirm all limits, endorsements, and insurance requirements are in place provides the most impact. This allows your business to transfer costly litigation and/or other exposures to your vendors (subctontractors, suppliers, tenants, etc.). Therefore, tracking and managing certificates of insurance does have significant impact on your company’s litigation expenses and financial exposures.
Contact us for cost effective solutions on how to track and manage your certificates of insurance.