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COIs are an industry-wide problem. Luckily, Corrigo Assure is the new, better way to handle insurance risk.

Posted by Brett Hazard on Sep 30, 2019 3:22:27 PM

 

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As someone who’s been in the facilities management business for a while, you’ve seen a lot of changes. Paper turned digital, phone calls turned into text messages, and now coolers and HVACs tell us when they need service. All things considered, change has been for the greater good, but somehow there’s one thing that has stubbornly, persistently, never changed. And trust me, it’s not for the greater good.

That stubborn relic of the past? It’s the COI.

The COI – the Certificate of Insurance – is the industry standard to verify a vendor’s insurance. Someone on your team has a pile of COIs on their desk, or a drawer full of them. We all use them, because what else can we do? But no matter what the name says, COIs are not proof of insurance.

Once you cut through the legalese, are you confident they’re accurate? Up-to-date? Do you think they’ll hold up to any scrutiny with the insurance company or in court?

When we talked to those really in the know about insurance, they universally told us COIs are a joke. They’re ineffective, outdated, and full of holes. And you know what? They’re right.

A risk management firm looked at hundreds of client vendors, and found that 90% of COIs contained material misrepresentations. That means only 1 out of every 10 COIs were accurate the day they were written. The rest contained errors, were incomplete, and in some cases, contained flat-out fraudulent info.

What happens if a COI says you’re insured and you’re really not? it’s usually the facility owner responsible for unexpected costs or expensive lawsuits, regardless if the error was an honest omission or deliberate deception. And if your vendor has an accident, like a roof repair job turning into a $1 million dollar fire and five injured employees, your vendor needs to be insured. Otherwise you’re on the hook for damages and workers’ comp.

We hated hearing these horror stories about COIs from our clients, and the problem seems to be getting worse. So we decided to do something about it.

Earlier this year, we partnered with Assurant, a global insurance company, to create a fix for this massive COI problem. We created Corrigo Assure, a powerful, flexible insurance solution to give our clients real, verifiable vendor insurance.

Corrigo Assure is seamlessly integrated into our platform, and it automatically provides:

  • Deep Vendor Screening: We digitally track W-9 uploads, TIN matching, OSHA violations, bankruptcies, and the terror watchlist.
  • Policy-level Insurance Compliance: We track and verify insurance at the policy level. So you know what actual coverage is in place when the job starts – not when the COI was submitted.
  • Gap Protection: If it turns out your vendors aren't carrying enough coverage, they can instantly purchase gap insurance to make up any deficiency.

Corrigo Assure also gives you centralized document management for all your insurance documents, plus smarter dashboards, alerts, and better workflow. Everything you need to simplify and improve your vendor insurance management.

Basically, we created a way to verify insurance that does CYA. It’s simpler, reduces risk, improves your operational intelligence, and delivers real peace of mind. We created Corrigo Assure so you can say goodbye to COIs and bring your vendor insurance into the 21st Century.

Learn more about Corrigo Assure

 

Topics: Vendor Management, Corrigo Assure

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