Risk Management Strategy: Insurance Certificate Tracking
Tracking insurance certificates of those involved in a construction project is an important part of a risk management strategy for a construction project. By properly tracking these insurance certificates, the construction company can help lower the risk for the owner of the construction project.
Why is tracking insurance important to DSS?
One of the main reasons why tracking insurance certificates is important is that it can help ensure that all workers at the construction site are properly insured. By requiring that all workers have valid insurance certificates and regularly checking these certificates, the construction company can help ensure that all workers are properly covered in case of accidents or injuries. This can help protect the owner of the construction project from potential legal or financial liabilities, and can also help maintain their reputation as a reliable and professional construction company.
Another reason why tracking insurance certificates is important is that it can help ensure that the construction project is properly covered by insurance. By requiring that all workers have valid insurance certificates and regularly checking these certificates, the construction company can help ensure that the project is properly covered by insurance in case of accidents, injuries, or other unexpected events. This can help protect the owner of the project from potential financial losses, and can also help ensure that the project can be completed on time and within budget.
The steps involved in tracking insurance certificates of those involved in a construction project include:
- Requiring that all workers at the construction site have valid insurance certificates
- Regularly checking the insurance certificates of all workers to ensure that they are valid and up-to-date
- Maintaining records of the insurance certificates of all workers, including the type of coverage, the expiration date, and the policy number
- Conducting regular audits of the insurance certificates to ensure that they are being properly tracked and that all workers are properly insured
- Working with the workers and their insurance providers to ensure that any lapses in coverage are promptly addressed and resolved.
Verification of Compliance with Insurance Requirements
Verifying compliance with insurance requirements is a cornerstone of effective construction risk management. Considering the inherent dangers of construction work, ensuring all involved parties possess adequate insurance coverage is paramount in mitigating financial repercussions from accidents, injuries, or property damage.
Traditionally, this verification relies on Certificates of Insurance (COIs) issued by the insurance companies of contractors and subcontractors. A meticulous review of these COIs is essential. This involves verifying:
- Coverage types: Ensuring the COI reflects the necessary insurance types, such as general liability, workers’ compensation, and commercial auto insurance, with coverage limits meeting the project’s specific needs.
- Validity: Confirming the COIs are current and haven’t expired.
- Named insureds: Verifying that the project owner and other relevant parties are listed as “additionally insured” on the policies.