Are You Exposing Yourself to Risk by Not Tracking Contractor Certificate of Insurance Expiration Dates?
If a company is just collecting contractor certificates of insurance for only confirmation of receipt, it’s simply not enough. When businesses don’t track contractor certificate of insurance expiration dates, they also leave themselves exposed to risk.
The costs of incorrect endorsements, uninsured claims, and lawsuits can have a significant financial impact on a business’ bottom line. Tracking and managing certificates of insurance with digital business process automation can make confirming all endorsements, limits, requirements, and expirations a seamless experience.
Better connecting the job site and the office
Like most industries, the commercial construction industry is going through a period of digital transformation. It’s now possible to seamlessly connect a job site to the office to efficiently manage building projects. New software tools have enabled construction companies to automate time-consuming processes like collecting and confirming certificate of insurance expiration dates from suppliers and subcontractors.
When companies start using certificate of insurance contractor risk management applications, identifying compliance levels becomes much simpler. Attributing lapsed coverage, or the lack of verification processes, or verifying that the coverage meets the contract requirements can be accomplished in much less time with digital business process management.
When lapses and noncompliance issues can be identified quickly, businesses can rapidly lower their exposure to risk. The company can demand that insurance coverage is resumed or adequate coverage has been put in place before restarting work on the project.
Notably, when you leverage a low-code, digital business process automation tool like Pulpstream, you can customize the management of your unique insurance processes without writing a single line of code. Any application you build for this purpose can be rapidly adapted to enable any business requirement, including the seamless collection of certificates from subcontractors. You can use a cloud-native platform or migrate your data from a subcontractor’s insurance agent.
Once a certificate is uploaded, the software would be able to read the information, identify policy numbers, policy limits, expiration dates, and other requirements much faster than any human could. After the data is recorded, it would automatically be verified against the contract requirements. To achieve this without automation, several staff members would be required to enter the information on the certificate and manually verify compliance. What’s more, they would have to conduct follow-ups themselves to ensure that insurance coverage has been resumed to match requirements of the contract.
With digital process automation, businesses can evolve with emerging consumer expectations. An email or text message could be sent immediately to the subcontractor or their agent for resolution. What’s more, as this process takes place in real-time, your exposure to risk can be reduced considerably and managed much more efficiently.
A cloud-native solution enables unprecedented efficiency
By digitizing the whole tracking process, businesses would have the ability to store all the certificates in a centralized location. So whether the company is managing 50 certificates or 1,500 certificates, the digital tracking system would be able to provide rapid access to the certificates needed for a claim or an audit.
As Pulpstream is a cloud-native solution, it allows all stakeholders to access certificates from anywhere in the world. This means that you can access all the certificates, notes, milestone progress, and ownership seamlessly from a single location. Furthermore, businesses can create data insight dashboards that enable all departments to view key performance indicators in real-time. This means that project managers can now quickly check if a subcontractor is compliant and insured before allowing them on a site.
As construction companies continue to engage second-tier and third-tier subcontractors on projects, it’s more critical than ever to effectively manage exposure to risk. When the insurance of these lower-tier subcontractors isn’t monitored, you can leave yourself open to major losses.
Automating this process with a low-code cloud-native business process automation platform like Pulpstream is the perfect solution to ensure compliance by making sure that insurance coverage hasn’t expired.
What’s more, this approach will enable businesses to save time and money by efficiently and effectively managing their exposure to risk.