Certificates of Insurance programs are the cornerstone of Workers’ Compensation protection in the construction business. A Certificate of Insurance (COI) is a form that provides proof of an active Workers’ Compensation policy. The document specifies a variety of details such as the policy holder, insurance provider, and the dates of active coverage.
Here are a few reasons why construction businesses need to implement a COI program:
- When a primary contractor hires subcontracted workers to assist with a construction project, they are 100% responsible for any injuries that arise if it’s determined that the subcontractor does not have active Workers’ Compensation coverage.
- Annual Workers’ Compensation carrier audits check to see that construction risks have a strong COI program. They check all COIs from subcontracted workers used over the policy term. If they find any uninsured contractors, they charge additional premiums for them, and these increases can be significant.
- COI programs demonstrate transparency and due diligence to construction regulators, auditors and business partners.
A construction company’s exposure working with uninsured subcontracted workers far exceeds any cost associated with establishig a COI program. From potential injury costs to increased premium costs, the monetary exposure is limitless.
Risk Innovations specializes in Workers’ Compensation for construction risks. We work with specialized carriers that provide valuable resources for setting up COI programs and implementing loss control strategies for your valued clients.