Why Compliance Matters
For businesses that work under a regulated environment, it’s important to adhere to compliance standards in order to keep operations at an optimal level. Internally, management teams are constantly reevaluating processes, (including insurance-related procedures,) to ensure they are safeguarded from any mishaps. An important effort, as insurance claims are often economically draining and can have a negative impact on a company’s reputation. This makes it necessary for a company to handle their certificate operations and third-party relationships in an effective manner. So that they can adequately safeguard against injuries to contractors and clientele, the liability from defective products, and any other potential lawsuits. From a risk management perspective, putting the proper strategies in place to protect your organization is of the utmost importance.
Costly Consequences
The purpose of COIs and third-party insurance is to safely mitigate risk and ensure proper coverages are in place. All businesses, regardless of size or sector, share one common objective -to deliver exemplary services/products to their customers. To achieve this goal, organizations must integrate compliance related processes into their daily strategies.
For example, a company that specializes in window treatments hires a subcontractor to install new windows at a corporate building with heavy foot traffic. All of the necessary precautions were enforced by the team, but there was still an unforeseen incident that occurred. One of the panels of glass was dropped by a worker during the installation and fell on a woman entering the building below. This resulted in severe injuries. If the subcontractor was uninsured, the hiring company would be held liable for the hurt woman. And without adequate coverage in place, the window treatment company would face disastrous consequences e.g., medical bills, lawsuits, and years of resource-draining legal proceedings.
Performing Your Due-Diligence
If the hiring company had properly implemented procedures for tracking and managing their certificates of insurance, the lack of coverage would’ve been discovered before the work commenced. Companies need to satisfy insurance requirements and confirm that all necessary liability limits and endorsements are in order. The manual handling of these processes often leads to human error and a pile of disorganized paperwork. Having one or two individuals keep track of each new third-party contract is not only inefficient, but it’s a risky way of letting non-compliant suppliers, vendors, or subcontractors slip through the cracks. It is imperative that businesses protect themselves from unnecessary exposure to risk.
A Simple, Cost-Effective Solution
CTrax is a powerful platform for managing and accessing certificates of insurance from any device or location. It eliminates time-consuming processes and defends companies from depleting valuable resources due to the non-compliance of audit demands, legal battles, and underinsured claims. CTrax protects businesses from human error, ensures coverages meet contract requirements, and verifies that all of your third-party relationships possess insurance policies that are active and in force. CTrax’s cloud-based technology leverages Optical Character recognition (OCR) technology to auto-populate data and notify users of any areas that require attention. This revolutionary system allows users to refocus their concentration on pertinent business operations, while storing all certificate-related documents on CTrax’s unparalleled platform.
