Over the years, technology had a huge influence on accelerating the process behind COI tracking. Several companies coming from diverse fields have started realizing the value that COI tracking can bring to the table.
However, COI tracking can prove beneficial to companies that operate with a huge employee count. Commercial property management companies are one such case.
With COI tracking, you can offer your property owners and tenants a unique value proposition. You can build trust by helping them safeguard their investment and income.
This will in turn help you minimize your exposure to risk. You can also save your clients from many potential losses that they may encounter. It is time we discuss this in detail.
1. Reduces Expensive Mistakes
As a property manager, protecting your property with the right type of insurance falls under your job description. Every piece of property and lease that you handle may require specific insurance coverage.
The odds of your tenants and vendors having those documents in hand is close to zero. Every employee who is working on your property should have a COI in place.
Needless to say that these documents need to be reviewed carefully. Without COIs in possession, any accident and damage could soon become an expensive hassle. This gets even worse when it comes to commercial property management.
You can either handle all these expensive charges or try your best to prevent them before they even happen.
2. Helps You Manage Your Expenses Better
It is never an easy task when it comes to managing insurance compliance. Nevertheless, it sure is rewarding. To make things even harder, some policies may be canceled before renewal.
Therefore, in case of an accident, you may not be able to claim this event with the lapsed coverage you have.
Proper COI tracking will help a property manager to make sure that all his tenants have active insurance coverage. Holding a valid and correct coverage is even more important.
When this is combined with a good compliance strategy, it helps the management to answer claims as they arise. It also protects your property owners against significant losses.
3. Improves Employee Morale
A good COI practice will help you extend your compliance throughout your entire area of operation. It helps you extend your employee morale beyond just your central office.
It is also important to train all your staff in a way that helps them master loss prevention and risk mitigation.
Property managers can comply with the “reasonable care clause” in property owner agreements through COI tracking and compliance due diligence.
Invest a huge sum of money upfront to educate your employees about the subject and risks involved. This helps them identify problems with the coverage even before they occur.
4. Enhances Your Service Delivery
As a commercial property manager, your reputation depends on how refined and smooth your process handling is.
This is a busy man’s place and you are going to have a lot on your plate including marketing, negotiations, and planning.
This is exactly why most property managers completely lose track of their progress with COI tracking. If you happen to do this, realize that you are about to make a costly mistake.
Streamline your COI maintenance and address necessary claims as soon as possible. Just by doing this, you can skyrocket the quality of your service instantly. Invest your time and effort at the beginning of the process so you can reap the benefits later.
5. Extends Protection To Individual Tenants
You cannot just assume that every member who falls under your business vertical has proper insurance documents. Improper insurance coverage is just as bad as having no insurance at all.
If you want to reduce your overall liability rate, you have to ensure that all your parties have a COI on hand. In spite of its tedious nature, you must manage to prioritize this.
Conclusion
If you are interested to know how COI tracking can have a huge positive impact on your business, read this blog: The importance of COI for your commercial real estate property during COVID-19
COI tracking is crucial to commercial property management companies and you do not want to learn this the hard way.
As a property manager, you must go beyond just accepting your insured’s word blindly when they say that they are compliant.
Managing many COIs at once is indeed a tedious task but you will quickly see the system pays for itself.
If you need a little more information, you can book a free demonstration to get a deeper understanding.