RISKY BUSINESS

“I need a certificate of insurance. Please see the attached contract for requirements.”Sound familiar? Many commercial lines customers will simply share the contract for the agency to review and fulfill the certificate of insurance request. This is not only a time-consuming task, but some contracts may be very technical and long in nature.

It is not realistic to believe the behaviors of those making these requests can be changed, but what can be done is to change the way in which an agency responds to these requests. An agency should feel empowered and encouraged to review its current workflow and identify opportunities to improve the process. Process improvement includes streamlining the response to certificate requests (without sacrificing quality or service).

Here are two quick and easy steps to consider for updating the agency’s response to certificates of insurance, especially the requests that include a contract to review:

1. Have one or more dedicated personnel who respond to certificate requests. Having dedicated staff for certificates provides ownership to the process, helps prioritize responses to certificate requests, and minimizes the exposure of errors in certificate requests by maintaining consistency in responses.

2. Utilize standard language, where possible. An agency should be cautious if filling in specific information in the Description of Operations section of the ACORD form. Staff should also, when possible, use a potential disclaimer to protect themselves from any contract interpretation.

When responding to a certificate of insurance request, always include standard language. Here is an example of what should be included in the email (hint: use Microsoft QuickParts to easily input the text into an email).

“Attached you will find the certificate of insurance as requested. Certificates are issued based on our review of the insurance requirements provided and the insurance coverage included in the current insurance program. Please review the certificate and your contract to be certain the coverage provided meets your contractual obligations. Please contact our agency to request any needed changes.”

Updating internal workflows can seem like a timeconsuming task, but often there are quick and easy changes that can make work more efficient and protect the agency from errors while maintaining strong customer service. If your agency is interested in reviewing your current response to certificate requests or any other internal workflows, please feel free to contact me at mallory@iiaw.com.

EMC provides personalized, local service that supports long-lasting partnerships, helping us better understand your business and offer the right insurance options to keep your manufacturing operation running smoothly. And with the knowledge and expertise to protect countless types of manufacturers, you can Count on EMC ® to have you covered.