How COI Verification Tracking Helps to Mitigate Construction Risks
Construction projects are complex and come with plenty of risks. A key factor in managing that risk is making sure that everyone participating in the project is properly insured. This is where Certificate of Insurance (COI) verification software comes in.
COI verification software is an extremely valuable tool used to manage and validate essential compliance documents known as certificates of insurance (COIs). It automates the process of verifying that the right insurance policies are in place and that they meet the requirements of the construction project. It helps ensure that contractors, subcontractors, and suppliers are properly covered and that the policy limits are acceptable.
Reducing Construction Risk with COI Verification Tracking
COI verification software eliminates the manual, time-consuming process of validating and tracking COIs. It helps construction companies and project managers stay on top of insurance information and confirms that the correct policies are in place and up to date. The software also makes it easier to monitor the expiration date of policies to confirm that they are renewed promptly.
Another useful feature is automating the distribution and sharing of COIs with other stakeholders such as lenders and government bodies. This guarantees that the right people have access to the right information when they need it.
How COI Verification Software Works
Mainly, digital COI verification tools help companies track and verify the insurance status of their vendors, contractors, and suppliers. It streamlines the process of obtaining and managing the documents, reducing manual labor and improving the accuracy of data. This especially helps back-office employees who can offload tedious and laborious processes. It also eliminates input errors and duplicate data entry.
The software works by scanning all incoming COIs and authenticating their accuracy. It checks if the policy is valid, if the limits are sufficient for the project, and if all required endorsements are included. It also flags any discrepancies between the existing policy and the one specified in the contract. This helps makes certain that all of your vendors are properly insured and that you’re not exposed to any potential liabilities.
Many software tools will provide COI tracking and can also keep note of expiration dates, so you can keep an eye on when policies renew and make sure they’re up to date. As a bonus, it can even connect to your accounting software to streamline the payment process.
Additionally, it’s a great compliance management tool for companies that need help monitoring the insurance policies of their contractors and suppliers. By keeping your data organized and secure, you can save time and money without a second thought.
COI Software Tracking Capabilities
Collecting and verifying COIs are key components of protection against compliance issues for general contractors (especially in the context of vendor compliance). Companies need to guarantee that the subcontractors they are working with have the right insurance coverage in place and that it is up to date. By automatically verifying the information contained in the COIs, companies can be certain that they are correctly protected from any potential liabilities a non-compliant subcontractor might present.
The verification process begins with obtaining the certificates of insurance from the vendors. Once the documents have been received, the COI management tool can be used to review and analyze them. The tool checks if the policy is valid, if the limits are sufficient for the project, and if all required endorsements are included. It also flags any discrepancies between the existing policy and the one specified in the contract. This helps to ensure that all of your vendors are properly insured and that you’re not exposed to any vulnerability.
If a policy is at risk of expiring, the program may also send out renewal requests to your subcontractors. It also keeps track of expiration dates, so you can keep an eye on when policies renew and make sure they’re up to date.
Why is COI tracking software useful?
COI tracking software is a valuable tool because it automates the process of obtaining and verifying COIs so you don’t have to. It can solidify that the subcontractors involved in a project or contract have the appropriate coverage in place and that it is up to date. This helps protect you from any susceptibility by ensuring that their vendors comply with the necessary policies. COI tracking software is an effective, efficient, and cost-effective way to streamline the COI process and keep your business protected.
Performing Seamless COI Verification with Built Technologies
Here at Built, we’re on a mission to revolutionize the entire construction finance ecosystem by providing services that enable all stakeholders in a construction project to get the job done faster and more efficiently than ever before.
Growing your business with an outdated process is inefficient, risky, and costly. With Built, you can automate your workflows and supercharge your business. With Built Payment Management, keep projects on track by simplifying and automating subcontractor invoicing and payments. Track compliance documents and automatically notify subcontractors before expiration. View the compliance status for a subcontractor before remitting payment.
Built syncs with a variety of software systems—including project management tools, accounting systems, and eSignature providers—to seamlessly plug into your workflow, reduce duplicate data entry, and eliminate errors.
Your AP inbox is no longer a black hole thanks to Built. We’ve made it simpler than ever for your suppliers and subcontractors to work with you in one accessible area. Partners can submit pay applications, upload compliance documentation, and sign lien releases with just a few clicks after receiving auto-generated reminders.
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