Another type of relationship is with your vendors. Making sure your vendor is top of the line is the first step in your blossoming relationship that cannot be overlooked. In these rapports, mystery loses its allure. According to a Buildings magazine article, Vet Your Vendors: Screening Steps to Ensure Your Vendor Is Top Notch, “more than 80 percent of companies conduct formal background checks on their full-time employees, but less than 20 percent do any type of screening of their vendors, supplies, and contractors.”
Certificate of Insurance (COI) tracking is a vital risk-management activity. If you’re a CRE professional you know this goes without saying, but many times out of date COIs can slip through the cracks if you don’t have an efficient process and clear visibility into how you are managing them.
If you are managing COIs with a paper-based or inefficient risk management process, you are exposing yourself to potential liabilities. Let’s look at a few of the many risk-based scenarios you face if you’re not utilizing technology or have a streamlined process for COI management:
- You hired a vendor to complete work on your property, but their COI is out of date and you didn’t know this because you weren’t properly tracking it. Boom – you’re liable.
- You renewed a contract with a tenant but failed to check their COI documentation. You also failed to realize they aren’t properly cover. You guessed it – another liability.
- Your Tenant Coordinators are inundated with COI paperwork, leading to a high risk of errors and incorrect COI data. One more liability.
Knowing the hidden dangers of poor COI management will help you better mitigate risk and protect your organization from liabilities.
By taking the initiative and constructing a comprehensive plan for COI management, and utilizing technology for an automated process, you eliminate many risks that threaten CRE professionals with poor certificate of insurance management. You can learn more about improving your COI management here.