Is Your Agent Helping With Your Compliance Efforts?

Complying to the liabilities mentioned in your Certificates of Insurance (COI) matters not only to the people involved in making the project a success but to the stakeholders as well. So although securing a COI is fairly easy with some companies, making sure it covers the required liabilities for contractors can be a challenge. This exact issue is causing professionals from the construction industry to petition for legislative reforms that make it easier for contractors to secure insurances. But what are the other ways your agent help you with compliance issues aside from issuing the COIs that you need on time?

Manage the collection and storage of COIs 

Agents do not necessarily review the COIs they hand out to contractors. This service is merely an add-on service that not many agents will provide. However, when agents offer to conduct the COI review, the contractor is granted more benefits and not simply compliance. Rechecking certificates will lower the risks of missing requirements, expiration dates, and minor issues that turn major such as misspellings and incorrect information. Another advantage would be if the agent files COI records through the statute of limitations of the State, it will be easier for attorneys to track down coverages, policies, and subcontractors if a case happens to be built around an issue. When records are easily found, it makes it less costly for contractors to compensate attorneys for their service as well as extra charges for loss adjustment and renewed insurance. 

Validate COI liabilities 

Subcontractors play a large role in making sure that each unit of the process is compliant. This is because their non-liability may affect the way contractors stay compliant. Contractors must always verify liabilities and all information with their sub-contractors before keeping a COI on file. Contractors are put under fire when subcontractors file for damages brought on by policy exclusions that contractors were not aware of. In addition to reviewing their own liabilities, contractors must have their subcontractors specify their coverage limits. This, in turn, will signal an agent to verify the insurance carrier’s requirements to help contractors become fully compliant as time goes on.

Support and guide contractors through indemnification agreements

Indemnification agreements for use of the contractor are best supported by an agent rather than having the contractor create and file their own with zero guidance. This is because agents have better knowledge of what is at stake should there become a compliance or liability issue with the subcontractor. An agent can’t necessarily help with the creation of the indemnification agreement and provide legal language. However, they can review and file the said agreement to make sure that every foreseeable issue can be contested and eventually resolved.

Attend to risk transfer procedures

Risk transfers are not as inevitable as they seem. Once contractors and their agents combine forces to carry out anti-risk transfer strategies, they help build the other entity’s reputation in the industry, making them both attractive to insurance companies. Becoming insured as a contractor in any industry is an ongoing challenge. It’s one of the toughest challenges that contractors encounter from the beginning of the project until the end.  Having solidified risk transfer procedures might just be the solution to this neverending issue. This way, issues will be evaded, projects will run smoothly, subcontractors will be given proper care and liability, and every setback encountered will only catapult the project to become better and the projects after it through careful risk management and project planning.

Being compliant in a world full of risks is a constant challenge that every project manager, contractor, and subcontractor will always face. It just helps to have the right agency and agent to help you work through the process of reviewing COIs, verifying liabilities, securing indemnification agreements, and implementing risk transfer strategies. Empower your agent better with the use of a state-of-the-art COI tracker that enables you to scan, record, save, and track your insurance certificates 24 x 7 x 365. Schedule a demo with us today!