Press Release (ePRNews.com) - FORT LAUDERDALE, Fla. - Jul 22, 2017 - Even the minor mistakes in risk assessment could set you back by a fortune. Insurance tracking solution is an effective measure to curb the possibility of errors and oversights. It is, therefore, widely popular in the construction business and also other areas where risk assessment is a must.
Insurance requirements are an essential part of the contracts in real estate business. A certificate of insurance is a necessity to evidence these requirements. In case of non-fulfilment of contract obligation, the parties are exposed to the risk of uninsured liabilities as well as breach of contract. If either of these actually happens, it could lead to dire financial consequences. Contract oversights or mistakes may cause several serious consequences on your balance sheet and that is what you must avoid at any cost.
This is the context that necessitates having a certificate of insurance tracking solution
Risk Transfer Practices
For every construction business, it is must to identify exact insurance requirements and receiving certificates for the same. The certificate of insurance must be compliant with the requirements. It does not alleviate the risk factors but definitely mitigates the same. The certificate of insurance requirements mitigates your chance of unknowingly coming under the burden of someone’s liability or accepting liabilities resulting from someone’s action.
It is not enough to confirm that you have received the certificate as there is no guarantee that other requirements have been fulfilled. You must confirm the insurance requirements, endorsements and limits on the certificates. Every business is exposed to some kinds of risks. However, a precise strategy must be in place to reduce that. The certificate of insurance is meant for that purpose. However, these certificates require proper management that poses a serious administrative challenge due to complexities involved.
Certificate of Insurance Tracking Software ( (http://www.jdictrax.com/)
Now the question is how to track these certificates? It is important to ensure that this process turns out to be more efficient for a business. Here are some important recommendations to make the process of insurance certificate management more effective.
1) Contracts with every subcontractor must be complete in writing. The contract can be done through annual agreement for all projects or establishing individual agreement for each project.
2) The subcontractors must not be allowed to enter into a construction site or start working until they put their signatures to all contract papers. Also make it a point to ensure that all risk transfer requirements including receipt of a certificate are fulfilled.
3) Organizing files is important. Prepare separate files for certificates of insurance, construction contracts and extra insured endorsements.
4) Establish a manual or automated suspense system to keep a track on the expiration dates of the certificates.
If insurance certificates and their proper management are insured, the real estate entrepreneurs will get relief from their previous administrative burden of tracking and validating certificates of vendors and subcontractors. Source :