We have just completed the premium audit process for the 2014 policy year and would like to thank each of you for your cooperation.
Every year we review the result of each policyholder’s audit to look for ways to help you save money, time and stress.
Once again, Certificates of Insurance (COI’s) are the leading cause of unwelcome surprises for many of our policyholders.
The difficulties with COI’s fall into two general categories: (1) those that are invalid because coverage has expired or been cancelled and (2) those that are fraudulent.
When invalid COI’s are discovered during the audit process, the result is usually additional, unbudgeted premium due. Additionally, if your subcontractor or his employee(s) incur a job-related injury, you may be held responsible for the costs related to that injury in the absence of a valid COI.
For years we have been providing information to help you evaluate the accuracy and authenticity of the COI’s you receive on behalf of your subcontractors. We will be happy to provide this information to any policyholder who calls (800) 678‑8178.
While close scrutiny of COI’s can go a long way to help you avoid unwelcome surprise, the two most effective ways to protect yourself are:
NEVER ACCEPT COI’S DIRECTLY FROM YOUR SUBCONTRACTOR. ACCEPT THEM ONLY AND DIRECTLY FROM YOUR SUBS’ INSURANCE AGENTS.
INSIST ON A NEW COI BEFORE EACH JOB IS BEGUN AND EVERY 30 DAYS THEREAFTER.
On too many occasions we have spoken to policyholders who believed they had profitably completed a job only to discover the profit was consumed by additional premiums due, usually long after the subcontractor had been paid.
If you have any question about the COI you have received on behalf of your subcontractor contact us, your insurance agent or the subcontractor’s agent for assistance in confirming its validity.
A brief phone call can save you money, time and stress.