Construction Industry: The Most Complex Insurance Requirements?
Most organizations have a single set of insurance requirements for managing suppliers. For example, a Fortune 500 IT Department may require suppliers to meet the same limits for each coverage type and on occasion permit exceptions to “standard limits”. So what makes managing subcontractors in the construction industry so complex?
Requirement Pass-through from Clients
Managing insurance compliance for Construction projects can be difficult due to the number of subcontractors involved, project location, size and various other conditions. Unique insurance programs, such as Wraps-Ups, provide consolidated insurance typically for worker’s compensation and general liability coverage for enrolled contractors and subcontractors operating at specific project sites.
Volume of Subcontractors
Some of Certificial’s Construction Clients manage over 10,000 subcontractors. If those subcontractors work across various projects, this volume significantly increases the complexity.
Types of Construction Insurance
A property owner undertaking a construction project could seek to insure the building or materials in transit. Depending on the nature of the contract, a contractor for that same project might require various different types of coverage to cover building materials, temporary structures or even plants. Unique conditions may also require insurance coverage for fire, weather and vandalism.
The end result is difficult to manage and challenges that range from high operational expenses to denied claims are not uncommon.
A Simpler Way
Certificial simplifies compliance management of suppliers and subcontractors. The use of Requirement Templates allows you to manage each subcontractor by any combination of Client, Project, Geography or any other criteria. And because Certificial provides dynamic data, the risk of insufficient coverage is greatly reduced.
Contact firstname.lastname@example.org to learn more and begin protecting the assets that matter most.