Certificates of insurance (COIs) are important documents in the construction industry that the project owner or primary builder is required to obtain. When a contractor is hired for a construction or renovation project, the project owner will receive a COI from the contractor who will also obtain COIs from any subcontractors working on the project.

COIs are critical for managing liabilities and insurance coverages and serve as valuable reference materials. Essentially, they provide protection from potential liability for unforeseen circumstances related to the project.

Insurance is something Subcontractors know they need but we all know administrative jobs like keeping paperwork in check is not a priority to most construction professionals.

Subcontractors need to keep their COIs (Certificates of Insurance) updated for 3 main reasons.

Firstly, up to date COIs help to ensure that the subcontractors have sufficient insurance coverage for the work they are performing on a project, which protects both themselves and the contractor or project owner. If a subcontractor’s COI is out of date or does not cover the specific work they are performing, for example if there is a change order which changes the scope of the work, it could leave them and other parties involved in the project at risk.

Secondly, an updated COI can help subcontractors maintain good relationships with contractors and owners. If a subcontractor provides an outdated or incorrect COI, it can create delays and confusion for the project, which can lead to strained relationships and a negative impact on the subcontractor’s reputation. It can also lead to costly delays.

Lastly, keeping COIs updated can also help subcontractors avoid potential legal and financial consequences. If a subcontractor does not have sufficient insurance coverage, they may be held liable for damages or injuries that occur during the project, which could result in costly lawsuits or penalties.

Verifying certificates of insurance (COIs) manually can be a tedious and repetitive job which is why some construction companies may choose to ignore it altogether. This decision can be extremely risky.

COI verification is vital for successful and smooth operations.

Luminates secure digital platform allows a hassle-free way of tracking COI’s in real-time, so you can ensure that subcontractors remain compliant with project requirements at all times, Additionally, Luminates allows for a hassle-free exchange of lien waivers for payment, helping you safeguard against any potential liens that could arise.

Other benefits of using Luminate to keep a track on COI’s

• Risk mitigation involves transferring liability, which is crucial for effective risk management. Adequate COIs can provide necessary protection before the main contractor and project owners insurance policy is required to provide cover.

• By verifying COIs from every subcontractor, potential injury expenses can be passed to their insurance company, thereby avoiding the need to make claims on the main contractors own policy and affecting insurance premiums.

• Proof or protection at your fingertips. With Luminate, you can have peace of mind throughout a project, knowing that you have access to your subcontractors’ insurance coverage and that your business is adequately protected. COIs also help increase your awareness of your insurance coverage and any areas that may be exposed, enabling you to take necessary steps to mitigate risks and protect your business interests.

• Working with trusted and reputable subcontractors. Working with trusted parties is crucial, but can be an extremely complex and time consuming task without an effective system in place to monitor and track important paperwork. A project often means a collaboration with multiple professionals and stakeholders. Each professional will have a separate policy with varying levels of cover and expiration dates to keep a track of.  Using Luminates centralized platform that brings together all contractors and stakeholders involved with a construction project, ensures seamless management of crucial documents.

Using Luminate you can save time and money on the COI verification process. You have easy access to all documents on the same platform where you manage them and approve and settle invoices without delays.

Luminate takes care of tedious and time consuming jobs so that you can focus on your core activities and achieve your project goals.