Introduction

Certificates of Insurance (COIs) are one of the most important safeguards in commercial real estate operations. They exist to ensure that vendors working on a property carry the appropriate coverage, protecting both the property owner and the management team from liability.

Most teams understand their importance. Fewer realize how much risk is introduced by how COIs are actually tracked and managed.

In many organizations, COI tracking still relies on spreadsheets, email reminders, and manual follow-ups. While this may seem manageable in the moment, it creates gaps in visibility and accountability that are difficult to detect until something goes wrong.

The risk is not always obvious, but it builds quietly over time.

Why COI tracking breaks down

COI tracking becomes challenging because it sits across multiple workflows and stakeholders. Property managers, vendors, compliance teams, and third-party contractors all play a role in keeping documentation current.

Without a structured system in place, teams often rely on manual processes such as:

• Tracking expiration dates in spreadsheets
• Requesting updated documents via email
• Storing files across shared drives or inboxes

These processes require constant attention. As portfolios grow, the volume of vendors and documents increases, making it harder to maintain consistency.

Even when teams are diligent, manual tracking introduces variability. One missed update or delayed response can leave a gap in coverage.

Where risk actually shows up

The biggest issue with poor COI tracking is that the risk is not visible in day-to-day operations. Teams may believe they are compliant, but without centralized visibility, there is no reliable way to confirm that coverage is current across all vendors.

Risk tends to show up in a few key areas.

Expired or missing coverage

Vendors may continue working on-site even after their insurance has expired. Without automated tracking or alerts, these gaps are easy to miss, especially when teams are managing multiple properties and vendor relationships.

Incomplete documentation

Not all COIs are created equal. Some may be missing required coverage limits or endorsements. When documents are reviewed manually and stored in different locations, it becomes difficult to ensure consistency.

Limited audit readiness

When documentation is scattered, preparing for audits or compliance reviews becomes time-consuming. Teams may need to track down files, confirm coverage details, and reconstruct records, all while trying to maintain daily operations.

A practical example

Consider a property team managing multiple vendors across several buildings. Each vendor is required to submit updated COIs annually.

In a manual process, one property manager may track expiration dates in a spreadsheet, while another relies on calendar reminders. Some documents are stored in shared folders, while others remain in email threads.

At first, the system appears to work. Documents are collected and stored, and vendors are generally compliant.

Over time, however, small gaps begin to emerge. A vendor’s coverage expires and goes unnoticed for several weeks. Another submits an updated COI that does not meet requirements, but the issue is not flagged. During an audit, the team realizes that documentation is incomplete across multiple vendors.

None of these issues were intentional. They were the result of a process that lacked structure and visibility.

Why this matters more than it seems

Poor COI tracking does not always create immediate problems. The impact becomes clear when something goes wrong.

An incident involving a vendor without proper coverage can expose property owners to significant financial and legal risk. Even without an incident, compliance gaps can lead to penalties, strained vendor relationships, and increased administrative burden.

Beyond risk, there is also an operational cost. Teams spend time tracking documents, following up with vendors, and verifying coverage instead of focusing on higher-value work.

What better COI management looks like

Improving COI tracking does not require adding more oversight. It requires introducing structure and visibility into the process.

This typically includes:

• Centralizing all COI documentation in one system
• Automatically tracking expiration dates and coverage requirements
• Creating clear workflows for document submission and review
• Providing visibility into vendor compliance status across properties

With these elements in place, teams can move from reactive tracking to proactive management.

Instead of chasing documents, they can quickly identify which vendors are compliant and which require attention.

Final takeaway

COI tracking is often treated as an administrative task, but it plays a critical role in managing risk across a property portfolio.

When processes are manual and fragmented, gaps in compliance become difficult to detect. Over time, those gaps create exposure that can have serious financial and operational consequences.

By bringing structure and visibility to COI management, property teams can reduce risk, improve efficiency, and operate with greater confidence across their vendor network.

Poor COI tracking can expose your properties to unnecessary risk. See how Building Engines helps CRE teams centralize certificate management, improve compliance visibility, and reduce liability.