Certificate of Insurance Tracking Software

A certificate of insurance (COI) is a vital document that serves as proof of insurance coverage and protects businesses from costly liabilities. Whether you're a property manager, general contractor, administrator, or business owner, effective COI tracking ensures your vendors and contractors maintain proper insurance coverage to shield your organization from financial and legal risks.

A COI provides essential policy details at a glance, including:

• Coverage types and limits
• Policy effective dates
• Named insureds and additional insureds
• Insurance carrier information

In today's high-risk business environment, proper COI tracking isn't just about documentation—it's about protecting your bottom line. By implementing robust COI tracking software or services, you can automate compliance monitoring, reduce human error, and maintain consistent protection against potential claims.

Maintaining current certificates of insurance is essential for risk management and compliance. Yet many businesses struggle with effective insurance documentation management. Consider that 36% of small businesses with D&O coverage faced claims averaging $120,000 in the last two years.

Despite these risks, most companies lack proper tracking protocols or use inefficient processes that burden staff. Success requires a well-defined, software-supported process.

Key Steps:

1. Collection & Storage: Gather all third-party certificates in a secure, accessible database
2. Analysis: Verify terms meet requirements and monitor for changes
3. Correction: Request updates for inaccurate information (70% of COIs need corrections)

Follow Up: Monitor renewals and policy changes to prevent coverage lapses

Here are the three main types of certificates of insurance you need to know:

1. Certificates of Liability Insurance verifies active insurance coverage if a business faces litigation. Protects property owners and extends additional insured status to property managers/lenders. Key elements include:

• Correct additional insured status
• Project operations description
• Waiver of subrogation
• Primary and non-contributory coverage

2. Certificate of Workers Compensation Insurance documents coverage for workplace injuries, including medical care and lost wages. Requirements vary by state.
3. Certificate of Auto Liability Insurance proves coverage for vehicle-related injuries or property damage. Must track for all vendor-owned, leased, non-owned, and hired vehicles.

A COI typically includes these five main insurance policies:

1. General Liability: Covers lawsuits from incidents on property, during operations, or from products
2. Automobile Liability: Covers bodily injury or property damage from company vehicle accidents
3. Workers' Compensation: Covers workplace injury expenses, including medical care and lost wages
4. Employers Liability: Protects against employee injury/illness lawsuits
5. Umbrella & Excess Insurance:
   • Excess Insurance: Provides higher coverage limits without expanding terms
   • Umbrella Insurance: Extends both coverage limits and terms

While COI tracking can be customized to your organization's needs and industry, every effective process should include these essential steps:

• Collection: Obtain and securely store all vendor COIs before work begins
• Verification: Review coverage details against requirements, ensuring current and adequate protection
• Expiration Monitoring: Track policy dates and set alerts for upcoming renewals
• Renewal Management: Coordinate with vendors to obtain updated COIs and maintain compliance
• Documentation: Maintain organized records of all certificates and related correspondence

Following these steps creates a structured process that manages compliance, mitigates risks, and maintains vendor relationship transparency.

Certificate of insurance tracking software is a specialized tool that helps businesses streamline the management of COI documents. It centralizes COI data, automates tracking tasks, and ensures compliance with contractual and regulatory requirements. With this software, organizations can collect COIs, track expiration dates, verify coverage details, and receive automated notifications for renewals or updates.

Some robust software enables you to easily chat with third parties, store documents, award bids to pre-vetted contractors and so much more—all from one integrated platform.

COI tracking software is vital for managing insurance effectively. It simplifies tasks, reduces risks, and helps ensure compliance. By automating processes, it makes managing insurance easier and more efficient.

Ultimately, the cost of COI tracking software varies by provider and service offerings. For instance, bcs offers two solutions priced to suit different needs and budgets:

• Self-service tracking comes with a robust software platform that empowers your team to fully manage COI tracking in-house.
• Full-service solutions include a dedicated team of analysts to handle all your compliance needs.

To gauge how much your current solution is costing you, use our free ROI calculator tool.