We’re thrilled to be featured in the recent April 2015 issue of Construction Executive, a magazine published by the Associated Builders and Contractors (ABC). They asked us to discuss the growing trend of companies using COI tracking software to automate their COI tracking and help alleviate what once was a risky, time-consuming process.
“The cost of uninsured claims and lawsuits due to lapsed insurance or the incorrect endorsement could have a damaging financial impact on a contractor’s bottom line. If a company is collecting certificates of insurance (COIs) simply to confirm they have been received, there is no guarantee that all of the contractual requirements have been met. Tracking and managing certificates of insurance to confirm all limits, endorsements and requirements are in place allows a company to transfer costly claims and exposures to the appropriate party.
Each year, the construction industry continues to grow more automated—better connecting the jobsite and the office. More recently, this trend toward automation has extended to software that handles one of the industry’s more time-consuming risk reduction processes: collecting and verifying COIs from subcontractors and suppliers. […]
The results of diligence can be staggering. When companies begin working with COI tracking software, it’s not uncommon to find compliance levels as low as 40 percent. Often this is due to lapsed coverage, or a lack of verifying that the coverage identified in a COI meets the contract requirements. In most cases, critical items such as additional insured and completed operations endorsements have not been collected. When the correct COI management solution is put in place, it’s possible to exceed 90 percent compliance relatively quickly.”