Almost every business is susceptible to some form of risk, liability, or loss. More often than not, these losses become too much to handle without support. Having valid proof of insurance is going to be your only chance of rescue if you and your business end up in a situation like this.
Your potential clients might also lose interest in your business if you don’t have it insured. Insurance documents require periodic monitoring to check coverage, expiry dates, etc., which can soon become tedious to a business.
Employing a Certificate Of Insurance (COI) Tracking software can help your business save a lot of manpower and revenue. The following post will re-emphasize the importance of having a valid Certificate Of Insurance (COI) along with software that can monitor it.
Types Of Businesses That Can Profit From Certificate Of Insurance Tracking
Every business has its own set of risk factors. This is exactly why there are a vast variety of insurances available with each having their own rules of coverage.
Here’s a shortlist of businesses/industries that can benefit from having a Certificate Of Insurance (COI):
- Residential Property
- Constructions
- Sports/Entertainment
- Manufacturing Industry
- Municipality/Government Agencies
- Hospitality
- Healthcare
- Non-Profit Organizations
Each of these businesses would require unique insurances meant for their purpose. If you’d like to know more about the benefits of using a Certificate Of Insurance Tracking Software, make use of this article: The 3 REAL Benefits of Using A Certificate of Insurance Tracking Software
What Does An Insurance Cover In General?
In general, business insurance covers any loss that you may experience during the normal course of your business. These losses could either occur due to property damage, employee-related risks, or legal liability.
Based on the plan that you have opted for, your insurance can cover your business, employees, and in some cases, both. Certain insurance policies can even protect the vehicles that your business employs. In most cases, you’ll have to apply for multiple insurances with each having their coverage and expiry dates.
1. RESIDENTIAL PROPERTY
- Benefits Of Residential Property Insurance
A residential property, in general, covers the house that you’re living in or a property that you have rented out. Buying a house usually requires a really big investment which is why it is equally important to protect your property with insurance.
This insurance category protects your property along with its contents which, in some cases, can even extend to your tenants.
i. It’s inexpensive
Most businessmen think that residential property insurance is an unnecessary expense. The fact that you can legally own property without insurance blinds their eyes.
But the value you get for the money you pay makes it totally worth it and in reality, it is also not that expensive. You can avail of insurance for just 0.05% of your property’s overall worth. This makes it one of the cheapest insurance options that you can ever ask for.
ii. Protects your main dwelling
Property insurance, in general, covers the entire residential area. This means that you can now get complete protection for the portion where people live in.
Your policy would probably cover any extensive damage that your property may endure. This is also why it is important to keep your property insured for 100% of its value. This way, you can enjoy all the benefits that your policy has to offer.
iii. Coverage for all the contents inside
Another major benefit of residential property insurance is that it covers, not just your property, but also everything that’s inside of it. This is only applicable if you have included all your inventory while applying for the insurance.
It includes any electronics, furniture, and appliances that you’ve kept inside your property. Insurances that cover the contents of your property usually cost about 0.1% of your overall value.
iv. Protects detached structures
Any property would have garages, sheds, fences and some may even have swimming pools and dog houses. These are generally referred to as detached structures.
You must explicitly obtain insurance that can extend its coverage to all these structures in case of damage. Generally, these structures can receive up to 10% of your overall coverage limit. But these numbers are customizable and they also depend on your insurer.
v. Offers liability coverage
This is one of the most important reasons why you just cannot miss having insurance for your property. There’s a really good chance for someone to get injured inside your property’s premises for which you could be held accountable.
Apart from the medical expenses, you may also have to answer legal questions which can lead up to a fine. Having insurance is going to be your firewall for any liabilities like these.
vi. Covers your temporary expenses
Commercial residential properties could suffer huge losses in case of a repair or replacement request. While in case of major damage, you or your tenants may need a place to stay where you’ll also have to bear the food and travel expenses.
These losses can soon add up to a substantial amount which becomes too much to handle. Having your property insured can help you compensate and cope up.
How Can A Certificate Of Insurance Tracking Software Upgrade Your Business Operation?
Using a certificate of insurance tracking software lets you automate tasks that were previously done manually. These tasks include renewal requests, compliance reporting, reviewing, and more.
A certificate of insurance tracker doesn’t require frequent monitoring. It can remind you about expiry dates and renewals which can save you from getting sued for managerial negligence.
Apart from the mentioned problems, there are a lot of situations that you may find yourself in, as a residential property owner. If you’d like to get a deeper understanding of this, feel free to check out: Why do you need COIs for your commercial real estate property?
2. CONSTRUCTIONS
- What Does A Construction Insurance Cover?
Construction sites have constant human activity 24/7 which comes with its inherent risks. There are a lot of workers, equipment, and machinery involved in getting the job done. This means that the possibility of an injury or damage is always around the corner.
This is often why construction sites have unique insurances to protect them from risks. Usually, there’s no “one-size-fits-all” policy and investors often have to acquire a lot of individual insurances to keep their site safe.
i. Personal accidents
Constructions sites are dangerous places where at least 3 out of 100 workers endure some form of an injury. An employee working at a site is legally eligible to sue his employer if he happens to encounter an injury.
The situation becomes even worse in the case of deaths. The penalties for running an unsafe construction without insurance could easily cost a fortune. This reinstates the importance of acquiring and tracking valid insurance.
ii. Professional liability
Mistakes are common and the field of construction is no different. Any small alteration or design modification in an undergoing construction is an expensive mistake. You could soon run out of investments and might even have to stop your construction mid-way.
The only way to stop this from happening is to have professional liability insurance. General insurance can protect your workers from bodily injuries, whereas this could save you from managerial errors that result in financial losses.
iii. Contractors all risks
Contractors All Risks Insurance is a must-have which can offer overall protection unless a hazard is particularly excluded from your coverage.
Based on your policy, all risks insurance will extend its coverage to fire, theft, flood, explosion, inundation, earthquakes, bad workmanship, human errors, etc. However, your plan may not cover losses due to faulty designs or consequential losses that your site may endure.
iv. Loss during transport
Any construction site would shift equipment, tools, and supplies from one work site to the next. Usual insurances would only cover losses and thefts that happen inside your site and barely care about the losses that occur during transport.
But having ‘Inland Marine’ insurance on hand can extend your insurance coverage even during transit. You can receive complete replacements for any loss or damages that your materials may endure off-site.
v. Covers your legal fee
As the owner of your construction, you’ll often find yourself amidst numerous lawsuits posed by your neighbors, visitors, customers, and clients. This also includes the legal complaints that your employees and workers may file.
Lawsuits are expensive in general. Having valid insurance on hand can save you a huge deal of money if this happens. You might also run into problems for not having your construction insured because, in some states, the law has made it mandatory.
vi. Protection against property damage
It usually takes a huge period for your construction to reach completion which in itself could deteriorate its value. The risks due to natural calamities such as earthquakes, hurricanes, lightning, and floods are not something you can underestimate.
One such event could completely ravage your site. Without a proper certificate of insurance, your chance of financial recovery is close to zero. Good insurance will also protect your property along with its contents (vehicles, equipment, and manpower)
- Reduce Expensive Mistakes With A Certificate Of Insurance Tracking Software
Errors in construction are inevitable whereas, disasters are unpredictable. Finding out that your insurance expired is probably the last you’d want to know in such a situation.
Having expired insurance is just as bad as having no insurance at all. Considering the number of people who work for your business, it is also illogical to track their insurances manually. An insurance tracking software can help you automate the entire process leaving no room for unnoticed expiry.
If you’d like to dive into the specifics of how a COI can be of help to a construction business, try reading this article: What Makes A Proper COI in the Construction Industry?
3. SPORTS / ENTERTAINMENT
- Why Does It Remain Unpopular?
Sports insurance is the most overlooked of all and it still doesn’t receive enough attention it needs. But on the other side, the sports industry is one of the richest and the most sought after with an often huge fan following.
Research says that the number of players getting injured in their game is even greater than the number of accidents that happen every year. This industry often encounters a huge number of unforeseen accidents which also raises the need for a lot of different insurances. Let’s take a quick look at the coverage that sports insurance can offer.
- What Does It Cover?
Just like any other insurance, sports insurance will first cover any injury or accidents that the players may encounter during any game in the entire season.
Apart from the players, this insurance can even protect the business that surrounds the game. The following is a list of coverages that a typical sports insurance can offer.
i. Directors & officers liability
This is an interesting category that protects sports agencies from lawsuits due to violation of laws or mismanagement that resulted in the economic downfall of another party.
This includes failure to abide by your own rules and bylaws, discrimination, racism, wrongful termination, or suspension of players. It can help you pay for your legal expenses and costs of settlement. Often, this policy is for the directors and officers of a sports organization.
ii. General liability
This is a subcategory of sports insurance that protects not just the players but also the spectators from physical injuries during the game. You can also request coverage for the damages made to the property or venue of the game.
Depending on your insurance, you can also receive settlements for the injuries that occur off-premises and during non-game hours. Not having insurance can easily cost you at least $50,000 in cases like this.
iii. Accidents
Injuries are one of the most common sports insurance claims which allow you to cover the medical bills of the players. It also makes sure that your players can receive the best medical care that they deserve.
As the head of your sports team, you can also minimize your lawsuit expenses if you have a certificate of insurance on hand. Apart from reducing your out-of-the-pocket expenses, it allows you to extend this feeling of protection to your team.
iv. Sports equipment
Players are not your only assets that endure damages but there is numerous sports equipment meant for practice and training facing the same risk. The risk multiplies if you are responsible not just for a team but also for a venue.
This includes uniforms, scoreboards, fences, bleachers, etc. With valid sports insurance, properly tracked and updated, you can protect them from vandalism, theft, wind, and fire.
v. Crime
The industry of sports is no exception to crime. You could face financial downfalls at any moment through fraudulent misappropriation of funds even by your employees and volunteers. Needless to mention the money that an outsider could steal. Instead of worrying about being a victim of backstabbing, you’ll have to concentrate on how to jump back up, Making sure that your insurance can cover crimes like this could easily do the trick.
- What Difference Does A Certificate Of Insurance Tracking Software Make?
The only disadvantage of insurance is that it expires. With expired insurance, you will find yourself helpless if you’re stuck in a situation that needs legal leniency or financial assistance.
A certificate of insurance tracker doesn’t require frequent monitoring. It can remind you about expiry dates and renewals which can save you from getting sued for managerial negligence.
4. MANUFACTURING INDUSTRY
- What Are The Sectors That Fall Under Manufacturing?
If you are a businessman who manufactures things for a living, equipment is probably your heart of the operation. Any small damage could potentially halt your production.
The losses that you endure could soon become too much to handle. Because you are now answerable to all your clients who could potentially sue you for the delay.
The manufacturing industry is a broad term that includes,
– Clothing and Textiles
– Petroleum, Chemicals, and Plastics
– Electronics and Computers
– Food Production
– Wood, Leather, and Paper
– Metals
- Interesting Features That A Manufacturing Insurance Has
Owing to all the risks that are unique to your industry, manufacturing insurance has a lot of coverage areas that no other insurance can offer. The following points will cover everything you need to know about them.
i. Errors and Omissions (E&O) protection
Based on the products you manufacture, your error-index may vary and so will your coverage. Your errors may go anywhere from a misprinted sign on an ad board to a missing piece on industrial equipment.
Fixing these errors and keeping your clients happy often needs a lot of money and energy. But what if your manufacturing error leads up to damage to a third party? Don’t worry! The E&O will cover certain costs that may fall on you.
ii. Saves you from negative publicity
If you are a popular company with massive fame in the market, a small mistake in manufacturing mistake could bring your whole empire down.
SMEs would struggle to find clients if they have any record of product contamination. Although there isn’t much insurance can do to repair your brand’s name value, it can cover the loss of income that follows.
iii. Coverage for motor truck cargo
The risks involved in your business would skyrocket if it happens to depend on automobiles. There’s always a chance of traffic accidents, breakdowns, and accidents while unloading.
Cargo theft is another major issue to consider. Fortunately, with the help of a certificate of insurance, you can prepare yourself for the worst. Apart from protecting your vehicle, it also covers the loss that occurred due to damaged cargo.
iv. Offsite & onsite protection
As a manufacturer, assuming that you can only face damage on-site is one of the worst mistakes that you can commit. Your cargo often needs to get stored in a temporary storage facility.
Until it reaches your client, you are responsible for its safety. Insurance policies often only cover the losses that you endure on-site. It is your job to get an “installation floater” that can help you extend your coverage limit.
v. Covers damages in molds and patterns
In most cases, the products you manufacture are cheaper than the molds, patterns, forms, and dies that you use. These expensive tools could cost you a fortune which is exactly why they deserve just as much protection.
If the pieces endure damages during production, the manufacturing insurance will offer coverage whether they belong to you or your client. You cannot possibly control everything but this will help you financially overcome setbacks.
vi. Equipment breakdown
Any type of manufacturing highly relies on equipment. The faster and agile they are, the more profit you can attain which is exactly why breakdowns can be paralyzing.
A small power surge could sometimes take out your entire production leading up to losses due to delay. Property coverage insurances won’t help you here and you’d especially need machinery insurance to cover the cost of repairs and replacement.
vii. Protects you from cyber risk
Businesses are going digital which is no excuse for backing away from getting a certificate of insurance. Cyber espionage is ever-present as you are always vulnerable to hackers and viruses.
Sensitive designs and digital renditions could easily get corrupted. It is always advisable to have cyber-risk protection included in your insurance.
Save Yourself Using A Certificate Of Insurance Tracking Software:
Equipment failure and cargo thefts are unpredictable and it is always good to keep yourself ready. There’s nothing more frustrating to know that you have expired insurance in case of an event.
An insurance tracking software can save you a huge deal of time as the entire system of maintaining your insurance documents gets automated. No more expired insurance or delayed renewals.
If you want to know more about why the manufacturing business requires insurances more than the rest, read this article: Mortality Rate for Oil and Gas Industry Workers Is 7 Times Higher Than Any Other US Industry
5. MUNICIPALITY / GOVERNMENT AGENCIES
- What’s The Significance Of A Municipality Insurance And What Does It Cover?
The responsibilities that municipal and government agencies have is much greater than the rest. They are either directly or indirectly responsible for the physical safety of civilians, public investments, and managing huge debt. This makes municipal insurance more intricate as the policies are a lot elaborate and descriptive.
i. Injuries due to improper maintenance
The general liability policies of municipal insurance have a lot of extra coverage zones than other usual insurances.
They offer coverage for physical injuries and property damage that happens within your municipal entity. This includes injuries that occur due to crooked sidewalks and damaged roads that have poor maintenance.
ii. Crime and recovery
If individual companies can receive theft complaints, the number of crimes that can occur in an entire municipality is unimaginable.
This is exactly why you get complete coverage with municipal insurance for the losses that you may encounter due to a crime. You can also receive compensations for the personal screening and background checks that you conduct on employees working under your entity.
iii. Employment practices
Disputes between employees or between an employee and a company are unavoidable. This can often be a result of discrimination, unfair discipline, demotion, defamation, slander, wrongful termination, harassment, etc.
This is just an introduction to the employment practice coverage that municipal insurance can offer. It can not just cover the financial losses of you but also the employee who’s under the spotlight.
iv. Automobile damages
Just like any other insurance, a municipal certificate of insurance can offer you “inland marine”. This protects your products not just inside your municipal limit but also outside of out.
Auto liability is also one of the benefits that you get out of it. All the vehicles that you’ve assigned to your employees, officials, staff, and cargo will get complete coverage in case of damage or accident.
How Can You Add An Additional Layer Of Protection With A Certificate Of Insurance Tracker?
Acquiring insurance is good but keeping your business protected is not a sprint but a marathon. Managing your insurance documents and keeping them updated is a labor-intensive task which you can simplify using an automated insurance tracker.
You don’t have to allocate a separate workforce and a monthly budget. This will save you a great deal of time which you can use for the benefit of your municipality.
Are you still going to ignore this safety measure? If I were you, I’d read this article first: Municipality and County Government Workers Need this Safety Tool. Without this…
6. HOSPITALITY
- How Does Hospitality Insurance Help You?
With no regard to the size of your hotels, restaurants, motels, and even taverns, they are always vulnerable to risks. Ranging from internal disputes to property damage, their aftermath could be monumental. Here are a few reasons how hospitality insurance can protect you…
i. Protects your investment
Just like all the other businesses, the scale of your hotel depends on your investment. Any sudden financial downfalls could blow your entire investment and send you back to a hard recovery period.
Having your establishment insured will keep your mind at peace as your property is now secure along with all its content. Also, the amount of money you spend on insurance is nothing compared to the money you can save by escaping lawsuits.
ii. Keeps your staff covered
The staff who work on your business is one of its major assets which makes employee liability insurance a necessity. Your staff could get complete financial assistance in case of an accident, injury, or other valid reasons.
Apart from this, federal law requires all your employees to have insurance to keep them safe if the need arises. Failing to do so could result in unnecessary lawsuits.
iii. Offers exclusive liquor liability insurance
In rare cases, the businesses that sell alcohol may have to answer for the damages caused by their intoxicated customers. If you happen to be the victim of one such claim, exclusive liquor liability insurance is your only chance.
This will not be a part of your general hospitality certificate of insurance and you have to acquire it separately. It can cover all your legal fees and may also cover the repair costs for the damages caused by your clients.
iv. Protects you legally
Hospitality insurance keeps you legally eligible to run your business as long as your documents stay valid. Free legal support is also the most common feature of business insurance. You can save a huge deal of money on legal consultations.
v. Keeps you eligible for loans
The hospitality business requires rapid scaling which becomes extremely hard without loans. Financial institutions hesitate to provide loans to any business that operates without insurance. A certificate of insurance document is what gives them the green-sign and shows them that your business is loan-worthy.
- The Added Benefits Of A Certificate Of Insurance Tracking Software
An insurance tracking software allows you to automate the entire process of renewal requests, compliance reporting, reviewing, and more. You can finally bid good-bye to time-consuming manual follow-ups. Perhaps the greatest benefit of using tracking software is the amount of money you can save from spending on manual tracking.
The positive impacts that a certificate of insurance tracking software has on your business are monumental and here’s why: 5 Ways COI Tracking Can Change Commercial Property Management For The Better
7. HEALTHCARE
- How Is Insurance Helping The Healthcare Industry?
Health insurance is one of the most claimed insurance categories of all time second to auto-insurance claims. But unlike what you may think, the coverage that it offers extends far beyond just paying for your surgeries.
i. Financial protection to people with life-threatening health problems
This coverage category is unpredictable and the hospital cost that it demands exceeds most people’s pay grade. Apart from car crashes, cancers demand a crushing amount of money to treat. Health insurance can offer your comfort in dealing with sudden out-of-the-pocket expenses like these.
ii. Broad access for small usage fees
Unlike what you may think, health insurances are more like club memberships than car insurances. In exchange for a small annual fee, the insured can receive a reduced fee for routines such as doctor visits. You can also receive discounts on medication refills. This plan is highly-customizable to serve a person’s health pattern.
iii. Improving the quality of clinicians and hospitals
The measurement efforts that the government and commercial insurers have developed has been improving and monitoring the quality of hospitals. They can eliminate certain services from hospitals if they don’t satisfy the quality criteria. The surgical capability of a hospital also depends on the quality of its clinicians and surgeons.
iv. Negotiating health services
Powerful health insurers around the world have been leveraging their market power to convince health care systems to provide concessions for their insureds. Therefore, the covered patients can receive discounts even while paying for expenses out of their pockets. This prevents health institutions from surging up the cost.
v. Motivating individuals to stay healthy
Over the past decade, various health insurers have been experimenting with benefit designs that motivate the insured’s to stay healthy. They are doing so by providing premium reductions for the people who quit smoking or those who join health clubs. Value-based insurance design is an excellent example where the insured does not have to pay anything for a service that is beneficiary and preventive.
- Always Stay A Step Ahead With A Certificate Of Insurance Tracking Software
Informing that he’d receive no coverage benefits because his insurance expired is the last thing that a cancer patient would want to hear. Spreadsheets like MS Excel are still quite useful, but not for Certificate Of Insurance tracking. It is also prone to many risks and errors. Using insurance tracking software is easier, more efficient, and secure.
8. NON-PROFIT ORGANIZATIONS
- Types of Insurance Nonprofits Should Consider
The agendas or modus operandi will vary from one NGO to the next. So will your area of operation, staff, tools, equipment, and budget. But certain aspects are common to all non-profit organizations for which a certificate of insurance is inevitable. Even if the intention of your NGO is not to make money, you’ll at least have to protect what you have.
i. D&O/Employment practices liability
The Directors’ and Officers’ liability coverage is just as important to Non-profit organizations as for corporations. This will safeguard your management from the claims and lawsuits that your officers or directors receive.
It also involves the negligence of your leadership towards fiduciary obligations, complaints of harassment, and discriminatory practices. Always be aware of your insurance’s coverages and exclusions before you decide to proceed legally. Because in most cases, the number of exclusions would often be greater than the areas of coverage.
ii. General liability insurance
General liability is a stability that you get with almost any insurance policy which can protect all the individuals that fall under your business from bodily injuries. But non-profits should also receive professional and abuse liability insurance just in case.
Because every time you’d like to receive funding or want to work with another organization, you may have to submit all these documents.
iii. Workers compensation or accident
Workers and employees are always prone to accidents. But the real question is, what can you do to ensure a safe working atmosphere.
Having your business insured to pay for their medical expenses, disability and accidents is the best possible way to make them feel safe. This is an absolute must-have since the general liability coverage will not cover these expenses.
iv. Property insurance
Most nonprofits use their property as their base of operations which makes it even more important to have it insured. Fire, vandalism, bursting of pipes, and windstorms could completely damage your property and could potentially derail your workflow.
But again, make sure your coverage plan includes all your necessities because few plans have vandalism exclusions.
v. Auto insurance
If you own a non-profit that focuses on rescuing estranged people and animals, you probably have some mode of transport involved. Even if you don’t own the vehicles that you use, a non-owned auto coverage will safeguard the vehicles that you are using for the activities related to the non-profit.
vi. Employee dishonesty
This is probably one of the strangest areas that a certificate of insurance can cover. The dishonesty coverage helps you with the funds that your employees have stolen.
The best part about this coverage is that it requires certain risk management protocols to be in place to get approved. These protocols can in turn prevent these thefts from ever happening and saves your business from a lot of distrust from the community.
vii. Cyber liability
This particular cover has been receiving a lot of spotlights these days due to the sudden increase in data breaches. Non-profits usually don’t have sufficient funds to invest in cyber-security which makes them more vulnerable than the rest.
If your business happens to be a victim of one such incident, you can leverage your cyber liability coverage.
This is just an outline of all the threats that you could face as a non-profit organization. To know more, read this article: The Worst Legal Things Your Employee can do to Your Company
- Why Should You Invest In A Certificate Of Insurance Tracking Software?
Understandably, you may not have sufficient funds to invest in security measures. But an insurance tracking software can help you have a soft-landing even if you happen to be a victim of an unfortunate incident.
The software keeps sequential track of all the documents of all your employees and reminds you before-hand if the plan’s about to expire. It lets you automate tasks that were previously done manually saving you a lot of money and time.
How Can Certificate Of Insurance Tracking Assure You Improved Protection?
Insurances make sure that you aren’t held accountable for the damages arising from unfortunate circumstances. But it is surprising to see so many businesses failing to manage their insurances and suffer liabilities that could have been avoided entirely otherwise.
COI tracking deals with a lot of paperwork, and it’s easy to lose track of all those data. With insurance tracking software, you can overcome human error and can eliminate manual labor as well. It reminds you about expiry dates and renewals far ahead of their deadlines.
If you’d like to know more about how a certificate of insurance tracking software can transform the way you operate, try reading this article: 5 Reasons Why You Need a COI Tracking System
Conclusion
This should’ve been an engaging read for businessmen who were looking forward to streamlining and safeguarding their business. We’ve covered various fields down the line and also saw how having valid insurance can be of help.
If your business happened to be a part of this list, you should’ve also probably realized the benefits that an insurance tracker has to offer. Apart from helping your business minimize risks by avoiding liabilities, a proper certificate of insurance tracking will also improve your company’s market standing in the long run.
If the idea of equipping your business strategy with a certificate of insurance tracker excites you and you’re looking forward to trying it, wait no more. Our experts are always there to help you. All you have to do is to take a step forward and book a free demonstration.