Published July 06, 2021 • 2 minute read
For many in the real estate industry, this process is time consuming, challenging, and fraught with errors. We’ll help you understand the critical role of COI tracking for real estate and determine the best practices for your business.
Complications in COI Tracking for Real Estate & Property Management
Any business that works with external parties faces distinct challenges related to third-party risk and COI tracking. However, real estate and property management companies are confronted with several unique challenges.
Multiple Third Parties
While many industries work extensively with third-party contractors and vendors, real estate businesses also have tenants thrown into the mix. Each third party can add new risks and potential exposures. Not only does this increase the potential for a claim arising, but it also makes COI tracking more challenging.
Multiple Lease Agreements
A property may have different lease agreements with each tenant, all with unique terms. This makes it exponentially more challenging for property managers to review each COI to ensure the tenant has the coverage mandated by their contract.
Coverage Lapses May Be Discovered Too Late
Nearly 70% of renters’ policies are canceled before renewal, so you might not know a tenant is no longer covered until after there is a claim. This high rate of cancellation demands regular COI review to ensure continued compliance.
Benefits of COI Tracking for Real Estate & Property Management
Reduced Risk for Your Business & Tenants
Requiring relevant coverage and tracking COIs are some of the most effective risk management strategies for those in the real estate business. While these protect your organization, they also shield your tenants from potentially costly incidents that could negatively affect their ability to stay in the space.
Effective Cost Management
Detecting lapses in coverage can help you correct deficiencies before a claim arises, rather than needing to foot the bill yourself. Additionally, requiring those on your property to hold adequate insurance can reduce your general liability insurance premiums and improve your bottom line.
Knowing who is financially responsible for claims can speed up the process of resolving issues, thereby benefiting both tenants and property owners. The best COI tracking solutions can also make it easier for tenants, vendors, and contractors to submit their COIs, saving them time and improving their impression of your professionalism.
Property management teams may implement COI tracking to show leadership how the team is protecting company interests. Utilizing reporting tools with visual representations of data can give them an instant overview of your overall compliance posture.
BCS Protects Your Real Estate or Property Management Business
Through our self-service solution and full-service option, BCS provides a customized level of support suited to your business needs. The self-service solution equips your team with an easy-to-use platform to maintain documents, automate notifications, and save countless hours of work. The full-service option takes it a step further and adds a dedicated team of compliance analysts to collect, review, and correct COIs to ensure your vendors, contractors, and tenants maintain current, valid coverage.
Regardless of which service you choose, BCS provides real-time insights into the compliance status of your contractors, vendors, and tenants, giving you a snapshot of your property’s overall exposure. Contact us today to learn more about shielding your real estate business from third-party liability risks.