FANDOM


Insurance certificate tracking is the process of validating third-party insurance policies on contingent workers and suppliers. The data is reviewed, approved and managed on an ongoing basis to verify policy amounts, coverage consistency and additional insured information.

In the United States, global firms hire more than 10.3 million independent contractors each day [1]. Companies such as these rely on insurance certificate tracking to protect the company from the legal recourse associated with working with contingent workers.

Legal Implications of Certificate Tracking

For these public and private entities, insurance certificate tracking can help protect the firm from heavy penalties. According to new legislation, the Occupational Health and Safety Association (OSHA) can issue dual citations to companies who have an on-site contractor incident [2].

When a contractor accident occurs, the employing organization is held just as liable as the on-site contractor. Both parties are considered to be at fault and issued a citation. The hiring company may also be sued for damages, in addition to being cited by OSHA [3].

The direct responsibility of contractor management, along with the administrative work of insurance certificate tracking has made the process a critical problem for many firms [4].

In addition to the legal ramifications of not tracking insurance certificates, the actual process can be quite time consuming. Coverage can expire during the term of the contract and often there is not an assigned individual to track expiring insurance coverage [5].

Risk and Control

Establishing proper protocols in insurance certificate tracking is essential to ensure that a company’s contractors are properly screened and safe to work at a facility.

To mitigate the risks contingent workers, many firms have chosen to adopt the help of a third-party agency [6] for effective loss control and insurance certificate tracking.

The involvement of a third-party objectifies the insurance qualification process for contract workers. It assigns a responsible individual to verify that coverage is accurate and kept current.

The Tracking Process

Insurance certificates can be tracked internally or externally by a specializing organization. When the process is done internally, a firm’s risk management staff collects scanned or mailed copies of the contractor’s insurance certificates. The certificates are then reviewed by Health and

If the process is done externally, a third-party agency is responsible for the collecting, filing and maintenance of insurance certificates for all contract workers.

As insurance coverage is typically done for an annual period, the contractor or their insurance broker is also contacted for an updated insurance certificate when expiration dates come due.

Under an agency, the insurance certificate data is typically stored online so that the client can track their contractor’s insurance whenever they wish to log in. This way the client can have access to a user interface to view certificate history and current limitation levels for suppliers.

Benefits of Insurance Certificate Tracking

Insurance tracking can prevent an organization from dealing with unwanted litigation and create a safer workplace, by eliminating the liability associated with uncovered workers.

Assigning an individual to review certification and track contractor policy expiration dates, can save time and lower costs. Additionally, tracking certificates with a third-party agency can improve contractor and supplier relationships by reducing the number of staff and documentation that need to be managed.[7]

References

  1. “Contractor Prequalification.” PICSauditing.com. Retrieved 26, December, 2012. http://www.picsauditing.com/ca/contractor-prequalification-4/
  2. “Invest in Success: Adopting a Vendor Management System.” PICSauditing.com. Retrieved 26, December, 2012. http://www.picsauditing.com/invest-in-success-adopting-a-vendor-management-system/
  3. “OSHA Fines Double Violations.” Article accessed 20/6/2012. Personnel Concepts. http://blog.personnelconcepts.com/2012/01/osha-fines-double-violations/
  4. “Keeping coverage current.” GovPro.com. Retrieved 26, December, 2012. http://govpro.com/mag/insurance-certificate-tracking-201106-07/#ixzz2GBU5qMEu
  5. “Keeping coverage current.” GovPro.com. Retrieved 26, December, 2012. http://govpro.com/mag/insurance-certificate-tracking-201106-07/#ixzz2GBU5qMEu
  6. “Contractor Prequalification Services.” PICSauditing.com. Retrieved 26, December, 2012. http://www.picsauditing.com/contractor-prequalification
  7. “The Importance of Contractor Insurance.” PICSauditing.com. Retrieved 26, December, 2012. http://www.picsauditing.com/the-importance-of-contractor-insurance/
This article uses material from the Wikipedia article Insurance certificate tracking, that was deleted or is being discussed for deletion, which is released under the Creative Commons Attribution-ShareAlike 3.0 Unported License.
Author(s): RHaworth Search for "Insurance certificate tracking" on Google
View Wikipedia's deletion log of "Insurance certificate tracking"
Wikipedia-logo-v2

Ad blocker interference detected!


Wikia is a free-to-use site that makes money from advertising. We have a modified experience for viewers using ad blockers

Wikia is not accessible if you’ve made further modifications. Remove the custom ad blocker rule(s) and the page will load as expected.