Your commercial property partners must submit their respective COI to reduce insurance risks. Complying with COI requirements will also put your business in good standing. Here are five important reminders to help you manage your stakeholders’ COI:
1. List your company under “Additional Insured”
Make a formal request to include your company as an “additional insured”. This will appear in your stakeholders’ general liability policies. You will also receive protection from any risk or liability caused by negligent acts in your commercial property. Do not forget to check the spelling of your company name. Send an example of the certificate to avoid confusion.
2. Get an endorsement from the stakeholder’s insurance company
The COI is not an endorsement per se. Request a copy of an endorsement from your tenant or vendor’s insurance company. It should state that the insurance company is endorsing you as an “additional insured”. Check for any changes in exclusions mentioned in the endorsement or COI that could affect the coverage limits in the policy.
3. Align COI’s coverage limits to contract’s requirements
Review the coverage limits in the COI. Then check the coverage requirements in the contracts with your tenants and vendors. Make sure the coverage limits in the COI are aligned with the requirements in the contracts. You can ask for changes in the coverage limits to meet the minimum requirements in your own contracts.
4. Check the coverage period for the COI’s annual update
Take note of the coverage period for all policies stated in the COI. Make a reminder long before the policy’s renewal date so you can request for an annual update of the COI’s. This gives you time to review if there are any changes in your policy’s coverage limits and requirements as well as your stakeholders, too.
5. Copy furnish COI’s
Send copies of the COI’s to your insurance agent and to your insurance company. You can send them in electronic format via email or provide a hard copy for filing.
Truth be told, collecting and verifying COI’s can be tedious. You will spend time following up on your request from every tenant and vendor. You should keep track of coverage limits, policy requirements, and insurance renewal dates. You also have to be updated with any changes in the insurance policy, which should be reflected in the COI’s.
It is good to be aware of these reminders. That is why there are reputable experts in COI tracking who can help manage this for you. They offer full-service tracking solutions with secure, automated systems. This provides a precise and streamlined COI organization. They are highly trained to ensure that the COI compliance process goes smoothly and stress-free for you. You can schedule a free demonstration to know more about how their services can help your commercial property business.
Remember, you need to act on these COI concerns to reduce risk and liabilities that could harm your business. Proper COI management gives you the assurance of enjoying the same coverage protection as your commercial property partners.