There are many nuances involved with the running of a company. Every facet, from marketing to customer service, plays a part in a company’s continued success. Insurance compliance is occasionally overlooked but can prove to be just as valuable as brand awareness.
Insurance compliance is the function companies can perform to make sure the contractors, vendors, and other third parties they hire have sufficient insurance coverage.
As more companies strive to keep their expenses down during these uneasy economic times, business owners must take measures to minimize their financial risk. Having insurance is just one method. Insurance compliance can be seen as being just as essential as owning a policy. Its importance will continue to grow the longer the business world experiences financial unrest.
What Does an Insurance Compliance Professional Do?
Insurance compliance is an industry that can see an increase in demand as more companies take their liability coverage more serious. Insurance compliance jobs may indeed be on the rise.
An insurance compliance professional is expected to collect, verify, and maintain the certificates of insurance provided to that company by its third parties. This job makes sure the company is adequately covered against any number of claims.
Since insurance is often complicated, this job requires industry knowledge and strong attention to detail. For example, a compliance officer might have to know insurance statutes for a specific state.
A company that hires many third parties should make sure that each person is compliant with liability insurance. This can quickly overwhelm the person or people who oversee insurance compliance. While one insurance compliance officer can handle this role in a smaller business, larger enterprises might face a greater challenge – and more expenses if they have to hire an insurance compliance department. An insurance compliance manager’s salary by itself can take up a sizable portion of an annual budget.
Are Certifications Required For Insurance Compliance Professionals?
Insurance compliance certification demonstrates a person’s expertise in the subject. Companies might hire an insurance compliance professional who possesses a certification in regulatory compliance instead of someone who doesn’t. Having certifications can also help a compliance officer candidate earn a higher salary.
Does Insurance Compliance Reach the C-suite?
According to Investopedia, the C-suite refers to a company’s most important executives. These are the people who are responsible for making the high-level decisions that govern the path of a company.
The chief compliance officer (CCO) position is considered C-suite. A qualified compliance officer can work their way up the line and attain this elevated job.
Can Anyone Perform Insurance Compliance?
Anyone familiar with insurance can make sure their third parties are compliant. It would probably be more effective if a company employed properly certified people to reduce errors and the time it takes to complete the task.
However, some companies will cut costs any way they can. Instead of hiring a trained specialist, they’ll have any one of their risk management employees take on the duties. These employees might not be competent in the field. Even if they know everything about the job, they might be too busy with compliance matters and neglect their other obligations.
In some cases, employees with completely different job titles do the work of compliance professionals. For instance, some property managers might verify their vendors’ insurances. There are a few reasons why this can result in future problems:
- They don’t have any experience or proficiency with the matter.
- They don’t have enough time to dedicate to verifying insurance.
- They have too many certificates of insurance to track.
Whatever the reason, when a property manager isn’t able to keep up with insurance compliance, they increase their risk of being held liable should their maintenance staff, cleaning crew, or any other hired third party act negligently.
The truth is that anyone can perform insurance compliance. The industry doesn’t require stringent vetting like the medical field. However, job-seekers who want one of many compliance jobs should receive proper training. They can raise their chances for success by showing potential employers that they know what they’re doing.
On the other side, companies might want to hire trained compliance experts to make sure they are relatively safe from financial issues that arise from claims. It’s also suggested that companies outsource third-party insurance tracking to a company like myCOI. It’s sometimes difficult to manage a vast quantity of certificates of insurance. A COI management solution can help businesses remain protected with the appropriate coverage.
Insurance compliance jobs are critical for companies that wish to trim the unanticipated and sometimes destructive expenses that insurance claims can incur. Massive damages can put once-successful companies behind for years or completely put them out of business. Carefully selecting staff members to fill these roles is crucial in following superior practices.