Certificate of Insurance Tracking Solution – Minimize Risk, Optimize Growth

FORT LAUDERDALE, Fla. - Aug. 15, 2017 - PRLog -- The objective behind is to accelerate the progress and ensure perfect finishing. The multi-contractor system is supervised by the well-known construction company that actually got the assignment. If the project is not insured by Wrap-up coverage (all contractors are insured for one job under one single contract), it is impossible for the management to know if all workers are properly insured or not.

Involvement of Subcontractors in Construction Projects

The big projects usually take many years to complete. These projects involve several contractors who actually create a multi-tier system to complete the project. Every contractor has a number of workers under him while taking instructions from his immediate boss. The actual contractor – who was awarded the project – securitizes every report submitted by the subcontractors, keeps a tab on work progress, assess the risks prior to starting the project and take necessary safety measures. The multi-tier system to carry out construction work is a classic example of labor division employed to efficiently finish different portions of a project.

The construction firm hires several local contractors for roofing, electricity, plumbing, foundation and many more works. Such distribution of works not only brings speed to the progress but also guarantees enhanced workmanship. It is also a cost-effective way to ensure excellence. As risk is a part and parcel of construction work, it is the responsibility of the contractor and subcontractors to ensure insurance coverage for all and sundry associated with the project. In the event of any accidental injury or death at the construction site, the company will be held liable in absence of any insurance coverage.

Three Options to Deal with Risk

Even if the risk is transferred to the subcontractors, the construction company is responsible for insurance coverage of any person working on their behalf within the premise of the site. There are three ways to avoid risk and these are as follows:

·         Prohibiting anyone from entering into the site

·         Taking the entire or part of the risk

·         Transfer of risk

Even if the risk is transferred, the construction company must make certain that the vendors/subcontractors have enough financial resources to fund the coverage.

Certificate of Insurance Tracking Solution

Certificate of insurance tracking solution (https://www.jdictrax.com/) can be done either manually or via a computerized system. Outsourcing is a good option to hand off the tedious work of insurance certificate tracking but it adds to overhead cost. Furthermore, it also puts a restriction on your control over what you want to tract and your interaction with the vendors/contractors.

Software packages ensure

·         Enhanced flexibility

·         More control over requirements

·         Less cost on a regular basis

Conclusion

Even if you adopt the best safety program, risk cannot be ruled out. Accidents may take place despite the best safety measures in place. You need to make sure that all insurance certificates cover necessary coverage and are updated regularly. Whether they are expiring or not can be properly tracked with help of a COI tracking software system.