No matter the type, every business will be susceptible to insurance, liability, or risk. Ignoring this fact increases the chance that the company will suffer losses, which could quickly become too much of an issue if not appropriately handled. Not only that, but your clients could lose interest. And who wants to stay short because of pieces of paper?
You will, though, if they are not adequately handled, stored, monitored, and managed, especially in companies that expose their workers to direct threats, such as the construction industry. But don’t be easily fooled. Many other businesses, from the delivery industry, retail, food service, telecommunications, aviation, healthcare, hospitality, and others, are all directly affected by COI management.
Tracking certificates of insurance can help you spare the business from unexpected and unwanted expenses. Manually checking coverage, expiration dates, and other information on insurance paperwork may quickly become tiresome for a company and its employees. That is when COI Tracker comes up to save the day.
Businesses That Benefit from COI Tracking
You can’t escape risks in any industry, whether cleaning, transportation, building, or delivery. They are a crucial component of any job process. Thus it is imperative to take every precaution to lessen their occurrence.
Generally speaking, business insurance covers any loss that could incur while conducting routine business. It includes everything you could imagine, from direct physical threats to psychological ones. Companies, their products, and services bring along different types of risk and insurance demands, all with specific coverage types.
By transferring risk, you can defend against claims against your insurance coverage when the party responsible for the accident can be held accountable. Your insurance premiums can be decreased as a consequence.
Here, we bring you several businesses that have the most benefits from investing in automated COI tracking systems and could suffer significant losses if their COIs are messy.
Construction Business
The construction business is the one that brings the most inherent risk compared to other companies. People can sometimes stay 24 hours and more on the construction site, working on heights or handling heavy machinery. The possibility of an injury, an accident, or damage is ever-present. Natural disasters like storms, floods, fires, and earthquakes represent a risk.
The most frequent causes of accidents include being hit by an item, falling, getting electrocuted, or being crushed by construction debris. Remember that the Workmen’s Compensation insurance rates are among the highest you will ever spend for coverage. The fines for operating a dangerous construction without insurance might go into the millions of dollars.
Construction sites frequently have specialized insurances to protect them from hazards. There is no “one-size-fits-all” policy, and investors must purchase many unique insurances to keep their construction site safe and protect the business and employees. These policies depend on the type of construction, geographical position, and extremity of working conditions.
The claims procedure is significantly more straightforward for your legal counsel to complete when you track certificates. Faster insurance payouts mean fewer hours billed to your attorney, which means more money and fewer hassles. Without enlisting the services of pricey compliance specialists, COI tracking can assist in identifying which party is accountable for what contract violations.
Manufacturing Industry
The manufacturing industry includes many different things, from clothing, plastics, and foods to computers, metal, wood, and many other goods.
Your coverage and error-index may change depending on the items you create. Mistakes might be anything from an incorrectly printed message on a billboard to a missing component on industrial machinery. If your business is well-known and has a large following, even a minor production error might send your entire empire crashing down.
One of the most significant errors a manufacturer may make is to believe that damage can only occur on-site. You must keep your goods at a facility with short-term storage. You are in charge of ensuring security up until goods reach your customers. Insurance policies frequently only provide coverage for damages you sustain on-site. Your responsibility is to increase your coverage limit.
The fact that businesses are going digital is no justification for delaying obtaining an insurance certificate. You are constantly at risk from hackers and malware, making cyber espionage prevalent. All these are legitimate reasons to keep your business and goods insured and track your certificates of insurance as well as other essential documents using a reliable and automated tracking system.
Government Agencies
Governmental organizations are responsible for far more than other businesses. They are either directly or indirectly in charge of managing a vast debt, making public investments, and ensuring the physical protection of citizens. Municipal insurance’s general liability plans contain many more additional coverage zones than other types of insurance. As a result, it is more complicated, and the policies are more detailed.
They provide coverage for accidents that result in physical harm and material loss inside your municipal organization. It includes accidents brought on by uneven sidewalks and poorly maintained, damaged roadways. Municipal insurance provides total protection for any losses you could also sustain due to criminal activity.
Imagine how hard it is to fill and keep track of these certificates manually. It sounds like an almost impossible task. That is why more and more government agencies are switching from manual tracking to digital tracking systems. It helps them keep the files organized and easily accessible.
Healthcare
The USA’s healthcare industry relies on insurance to cover most of its expenses, and when it comes to the most claimed insurances, this one is high on the list, together with auto insurance claims.
Life-threatening health problems such as complex diseases (cancer, multiple sclerosis, and many others) can lead to unexpected expenses which most people can not cover solely with their income. That is when health insurance comes in handy because it can potentially cover many hospital expenses. The insured may be eligible for a discounted rate for standard services like medical visits in return for a nominal annual cost. Additionally, you might get savings on prescription drug refills.
Lately, many insurers have been experimenting with benefit structures that encourage the insured to maintain good health. They accomplish this by offering premium discounts to customers who give up smoking or join fitness centers. Value-based insurance design is an excellent example of a beneficiary and preventative service where the insured is not required to pay anything.
Hospitals need to keep track of all insureds to handle their expenses accordingly. Keeping a manual track can be tiresome and sometimes requires an entire team to run it. Automated COI tracking software can drastically reduce the managing time, speed communication, and save lives.
Residential Property
Generally, a residential property includes the home you occupy or a property you have rented out. Since purchasing a home typically involves a substantial financial outlay, insurance coverage for your property is crucial. This type of insurance covers both your building and its contents, which in some situations may even include your renters.
A request for repairs or replacement might result in significant losses for commercial and residential buildings. While in the event of substantial damage, such as weather disasters, you or your renters could require a place to stay, for which you’d also be responsible for the cost of food and transportation. These losses might quickly build up to a large sum that is too much to bear. You may be able to compensate and deal better if your property is insured.
In any case, it is best to keep track of your property insurance certificates organized and ready if any unexpected circumstances arise.
Hospitality Business
Your hotels, restaurants, motels, and even bars are at risk, regardless of size. Their effects might be enormous, ranging from property destruction to internal conflicts.
The size of your hotel relies on your investment, just like any other enterprise. Any unforeseen financial setbacks might wipe out all of your assets and force you to start again from scratch. Having your business insured can provide peace of mind because your property and its contents are now protected. Additionally, compared to the money you may save by avoiding litigation, the amount you pay on insurance is minimal.
In rare instances, establishments that serve alcohol may be held responsible for the harm done by intoxicated patrons. If you become the target of such a suit, your only option is to purchase exclusive liquor liability insurance.
You will need to purchase this individually as it is not included in your general hospitality certificate of insurance. It can pay for all your legal bills and any repair expenses for the harm your clients bring.
Delivery Industry
To cover everything involved in a transportation-delivery scenario, every delivery, and transportation company has to have current insurance coverage. You might be perplexed as to why something that seems straightforward must be made so difficult, but in this business, it’s standard procedure.
Many landowners, including government organizations, won’t let any delivery or transportation steps on their property until they can give them a COI. They do this to shield themselves and their property from liability in the event of damage or demonstrate to the insurance provider that they exercised due care and did get a COI from their vendor. When someone doesn’t make their insurance policy payments on time, businesses sometimes won’t be able to fulfill their planned transportation or delivery demands.
Possession of a COI signifies that your movers or the firm offering you its services on the property once held an insurance policy that covered part of their non-negligent business activities. A COI indicates that the vendor or the carrier had sufficient insurance.
Conclusion
Maintaining your company’s protection takes time and effort. Managing and updating your insurance documentation is a time-consuming chore that may be made more accessible by employing an automatic insurance tracker.
You do not need to set up a distinct staff or monthly budget. You’ll do this to save a ton of time, which you can then spend for the good of your community.
You may automate the whole renewal request, compliance reporting, reviewing, and other processes with insurance tracking software. Finally, you can put an end to time-consuming manual follow-ups. The money you save by forgoing manual tracking may be the most significant advantage of employing tracking software.
Luckily, CTrax is here to help you. It offers everything you need, from OCR technology to COI management. It allows you to track COIs, merge them and renew them if they expire.
CTrax is everything you need when it comes to monitoring COIs automatically.
