Do you obtaining Certificates of Insurance from Your Vendors?

By
Services for Real Estate Pros Insurance NPN # 13379201

Do you use vendors? Are they insured? These are questions you need to ask yourself before referring them to your clients

As a small business reliant on vendors for their services, your persistence in tracking certificates of insurance from each of your vendors helps to insulate you from liability. If you use many different vendors, it may seem daunting to think about organizing a program that not only stores the certificates, but obtains new certificates annually to ensure that proper coverage is consistently maintained. Here are a few ideas to help

 Add the certificate of insurance requirement to your contract: Within your contract, you should specify that a certificate of insurance showing liability, and other necessary coverage, is required before you begin conducting business with the vendor. You can also add a clause that new certificates are required annually in order to continue working together.

•Create a checklist: In the folder that you keep the company contract in, add a checklist of supporting documents that you require, including the certificate of insurance. Do not file the contract as completed until the certificate is sent in.

•Get the right contact information: The individual whom your company has the most contact with may not be the individual who handles the insurance renewal and management. Get the name of the individual that you should be contacting at the vendor’s office in order to discuss the issue of liability insurance certificates.

•Follow-up in writing: If you fail to get the certificate after contacting the correct individual, send a letter addressed to both your insurance contact and the person who signed the vendor contract. This will serve as an official notice that you have yet to receive the certificate and the contract is still invalid.

•Use your customer relationship management (CRM) program: If you utilize CRM software to track your clients and follow-up on marketing leads, you can also use it to track vendors and certificates of insurance. Simply designate an area for notation once the certificate is received, and place an annually renewing reminder to call the company and update their certificate.

 

It’s so very important for you to make sure that your vendors give you certificates of insurance in order to continue doing business together.

If you need additional solutions for managing this task, give us a call.

 

Posted by

 

Comments (12)

Richard Burge Realty/ Burge Homes
Richard Burge Realty/Burge Homes - Conway, SC
Broker in Charge/Owner

I don't recommend just one vendor but at least three for a service that is needed.  I let the choice rest with the home buyer as to who they choose to render the service. 

Feb 08, 2013 09:43 PM
Frank Laisch
Orlando, FL
"The Insurance Guy"

Richard, thanks for stopping by, that is a good plan. just make sure they have insurance

Feb 08, 2013 09:49 PM
David Cole
David Cole CPA - Orlando, FL
David Cole CPA

Frank, This is good information for your vendors. it is always good to make sure they have liability coverage

Feb 08, 2013 11:01 PM
Amy Stockman
Lakeridge Land Suveying & Mapping, LLC - Winter Garden, FL
Lakeridge Surveying

I make sure my vendors have Insurance and require all of them to provide certificates

Feb 09, 2013 12:41 AM
Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

I also recommend several vendors and I do ask about insurance.

Feb 09, 2013 04:36 AM
Frank Laisch
Orlando, FL
"The Insurance Guy"
Thanks Barbara-Jo, I am glad you verify your vendors
Feb 09, 2013 06:29 AM
George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Frank when I was selling Material Handling Equipment we would use several vendors, and before we did business with them we would always get their certificate of insurance from them, and keep it on file. 

Feb 09, 2013 09:03 AM
Frank Laisch
Orlando, FL
"The Insurance Guy"

George, very important, especially in that line of business. Agent and lenders need to make sure their inspectors, Appraisers, surveyors and other vendors they use carry some liability insurance

Feb 09, 2013 07:53 PM
Sabrina Schirmer
National Insurance Solutions, LLC - Winter Haven, FL

It is important for anyone that uses vendors to ensure they have proper insurance, especially if you are recommending them to a homebuyer

Feb 09, 2013 10:28 PM
Toni Weidman
Sailwinds Realty - Trinity, FL
20+ Years Selling Homes in New Port Richey, FL

I usually recommend 3 to my customers but maybe I should be looking into this too, Frank. suggested.

Feb 10, 2013 12:16 AM
Frank Laisch
Orlando, FL
"The Insurance Guy"

Thanks you Sabrina, It is very important

Toni, Thank you. it is good to recommend vendors, especially when folks are moving from other areas. making sure they have coverage is also important. Thanks for the comments :-)

Feb 10, 2013 12:38 AM
Anonymous
kirsten johnson
Just want to share my experience in filling out quarterly tax form. PDFfiller.com is the answer! I was able to get the form here: http://goo.gl/vmWwTg and be able to fill out, print, save, fax or even SendtoSign forms. Not to mention the friendly and helpful 24/7 support staff. Got a superb experience!
Apr 03, 2014 07:22 AM
#12