There are many times in business where a business owner must employ the services of others in order to accomplish certain tasks. When you employ a vendor to complete a task, you become partly liable for any damages done while they are working on your project. This extra liability is not something that your general liability policy will cover. That is why it is so very important to make sure that all of your vendors are properly insured before you hire them. When negotiating terms of employment for any vendor, you should always require a certificate of General Liability and if appropriate proof of Professional Liability coverage (also sometimes known as malpractice insurance).
To see an example of the importance of tracking insurance for all vendors, we only have to look as far as this weekend’s news stories. Recently, two children were killed because they were playing on the site where a home was being built. They were playing in the whole that was dug to build the foundations, and the walls collapsed. When such a tragic and senseless accident happens, someone has to compensate the families for unexpected funeral expenses and the suffering that comes with the loss of a child. If the contractor who was building the home is insufficiently covered, the burden will fall to the development company and/or the owner of the property. This kind of tragedy could easily land an unprepared business in bankruptcy court.
Despite the urgent need to make sure your vendor has insurance, not all business owners know what to ask for from their vendors. Vendors should be required to have a general liability or professional liability policy. A general liability policy covers the policy holder for property damage and bodily injuries as a result of their negligence. A professional liability policy is a little bit different. This policy is held by professionals such as doctors, lawyers, consultants, and others who render a service based on their professional expertise. The professional liability policy helps the policy holder to protect their business from lawsuits that are a result of sub-par services provided by a professional. This is a different term for the malpractice insurance that many physicians maintain.
With so many vendors performing so many projects, the task of tracking their insurance information seems a daunting task. Fortunately, Nourtek Solutions has a way to help you track vendor compliance across your organization. The Certificate Tracking Portal is a business process automation solution that will help business owners everywhere protect their livelihood. With CertTrack, you can create vendor files, scan, and track insurance certificates. What is even better is the automated reminder system. The CertTrack Portal automatically notifies both vendors and administrators to any compliance issues including missing certificates of insurance and upcoming certificate expiration dates. Furthermore, administrators can run customized reports and monitor key performance indicators through our ad hoc reporting and dashboard features. Such a spectacular group of features is sure to help business owners manage their vendor compliance program, and save the business money and potential liability headaches.
To learn more about how Nourtek Solutions can help you manage your vendor compliance program, please contact us today for a demonstration.