Revolutionising third-party Insurance to benefit contractors

To safeguard against monetary loss, hiring clients demand that contractors obtain general liability insurance sufficient to cover all potential incidents throughout their supply chain.

 

The process for securing the right cover can be complex and costly and involves many steps to ensure the contractor meets the requirements outlined by the hiring client and adheres to local laws. But what if there was another way? What if the contractor could streamline the process to meet all requirements and save money?

 

Insurance verification is the foundation of contractor qualification, ensuring businesses have the necessary insurance cover to protect against potential liabilities, including physical injury, property damage or even product liability cover for exceptional circumstances. Contractors work in various industries, from construction and oil and gas to manufacturing and utilities, and each of these sectors has its unique set of risks. Therefore, insurance verification is not just a “check box” but a crucial part of contractor qualification that directly affects project safety and success.

 

A typical general liability insurance verification process includes (but not limited to) the following steps:

 

Documentation review: Contractors must submit comprehensive insurance documents, including certificates of insurance, policies and endorsements. Clients scrutinise this information to verify that they meet industry-specific requirements and cover limits when they hire.

 

Contractor qualification: Insurance verification goes together with contractor qualification. A prequalification questionnaire (PQQ) assesses a contractor’s experience, qualifications, safety record and financial stability. This step ensures that contractors are adequately insured but also competent and reliable. Once a hiring manager is satisfied with the PQQ, they might invite the contractor to tender.  

 

 

Safety audits play an essential role in the verification process. They assess contractors’ compliance with safety regulations and best practices, identifying areas for improvement. Traditionally, external safety auditors perform these services, adding to the overall costs incurred by contractors.

 

As mentioned earlier, this method can be expensive and time-consuming. However, emerging compliance and risk management technology can transform this outdated process, benefiting the contractor greatly. It requires a strategic partnership between a leading compliance and risk management provider and an insurance company.

 

CHAS, a Veriforce Company, is a well-established organisation specialising in health and safety assessments that can streamline insurance verification. In partnership with an insurance broker, CHAS handles onsite audits, supplies PQQ and survey data and verifies policy information. This service saves the underwriter third-party verification fees they will pass to the contractor through preferred insurance rates. Additionally, the insurance partner offers CHAS contractors the same insurance cover they would get working directly with a broker and underwriter.

 

But the benefits of this innovative way to verify insurance don’t stop at cost savings:

 

Streamlined process: CHAS streamlines the insurance verification process by offering both contractor qualification and safety audits under one roof. This integration reduces administrative burdens and ensures efficiency.

 

Expertise: CHAS employs experienced safety auditors who are well-versed in industry-specific safety regulations. Contractors benefit from their knowledge without the need to hire third-party auditors.

 

Accurate assessments: CHAS has extensive experience in audits and risk evaluation, so contractors can feel confident they are getting the best evaluation that meets industry standards. Contractors receive an accurate and fair assessment and don’t need to worry about a third-party auditor unfamiliar with their business.

 

With the global rise in business costs, contractors must find ways to operate more efficiently. A new and innovative way to streamline insurance verification allows contractors to save money without compromising safety. The time has come to think differently about third-party insurance verification.