Running a business today is challenging on its own. Dealing with the marketplace and competition is a job in itself. Add in the need for insurance and keeping up with all that entails is an additional undertaking that can quickly overwhelm.
Companies must protect their physical location, vehicles, and employees all while guarding themselves against negligence. The compliance risks of third parties can heavily weigh on a business. Statutes can change. With all that companies have to manage daily, keeping abreast of these changes can take a backseat. However, if companies don’t stay current with regulations, then they can be vulnerable to liability risk.
If you own a business or are responsible for working with the certificates of insurance your third parties provide, then the following questions are of the utmost importance:
- What is risk and compliance?
- How can companies protect themselves from liability risk?
- How can companies keep up with statute changes?
- What is insurance tracking?
- Can compliance management software help?
What is Risk and Compliance?
Risk is the likelihood of something negative happening. For instance, a delivery company’s primary risk might be traffic incidents.
Compliance is the state of following guidelines. Following the previous example, a delivery company should ensure its third-party drivers are licensed.
Insurance protects against a possible adverse event. A delivery company should be insured as well as their drivers.
Insurance tracking helps make sure that companies and their third parties have insurance policies that cover their specific liabilities. The practice also verifies that the policies are valid and up-to-date.
Third parties must prove they are sufficiently insured by submitting certificates of insurance. These documents must be individually authenticated, managed, and stored. This practice can be performed either manually or electronically via compliance management software.
Compliance tools can help guarantee accuracy and streamline the entire process. They are also available in free and paid versions.
Free or Paid?
Like some computer apps, risk management software can make life easier. However, the price can reflect functionality. Free software might offer a few basic features. Paid software can provide an entire suite of functions.
For a tiny company that’s just starting, free compliance management tools might be enough. A larger company might want to invest in enterprise risk management software. If they have more certificates of insurance to handle, then a paid option can better assist them by providing powerful features that might not be found elsewhere.
The phrase “you get what you pay for” can be true when it comes to risk and compliance management software. If you’re searching for ways to help manage your company’s certificates of insurance, then assess your needs and budget. If your company can afford software, then invest in it. If not, then seek a free alternative.
What If I Decide Against Software?
Depending on the size of your company, not using risk management and compliance software can have various effects:
- Increased labor costs: A company might have to hire more staff to manually process certificates of insurance depending on the volume. This expense can be a burden on a tight budget.
- Wasted time: It takes time to process every certificate of insurance. This includes obtaining, validating, tracking, and storing each one. This time could be used to improve the company in other ways such as lead generation.
- Possible errors: Humans make mistakes. An oversight regarding a certificate of insurance can increase a company’s liability risk. One wrong action and a costly claim can destroy a company’s financial well-being.
Even free compliance management software can help risk management professionals stay organized, which can make a difference between compliance and financial ruin. The best compliance management software might not be free, but it can protect a company similar to insurance.
What Can Compliance Management Software Do For Me?
If you struggle to manage a huge amount of certificates of insurance, then you probably need compliance management software. Such software, like myCOI, can aid you with the entire process and help your company remain protected with the appropriate coverage. myCOI can:
- Guarantee your company’s requirements are met: Simply collecting certificates just to confirm they were received isn’t an effective solution. Each one has to remain current with statutes that might change. myCOI automatically does this for you.
- Reduce the time and money spent physically handling paperwork: You can eliminate paper trails and manage all of your certificates, requirements, vendors, and other documents in one central electronic location. Your company won’t have to hire more people to process all of its certificates.
- Expedite and streamline requests: myCOI automates insurance certificate requests, collection, and compliance resolution. Staff no longer has to worry about chasing down certificates because tracking is automated.
- Easily view your compliance status: Visual indicators will let you know when your insurance requirements are not being met. You can quickly understand each compliance status without having to think much about it.
Compliance management software is crucial. Your company’s welfare depends on its third parties being properly covered. If you think you’re saving your company money by continuing to manually process certificates of insurance, then you’re overlooking the long-term gains compliance software can furnish. Reconsidering your point of view can keep your company strong despite any adversity.