Working with vendors and subcontractors usually means requiring proof of their liability insurance before engagement - a certificate of insurance (COI). The gap most businesses miss isn't collecting that COI once; it's tracking when it expires, because vendor coverage lapsing mid-contract can leave your business exposed to claims you assumed were covered.
The exposure most businesses don't track
A COI collected at contract signing is a snapshot, not an ongoing guarantee. If a vendor's policy lapses six months into a year-long engagement and an incident happens after that point, the assumption that "they're insured" may no longer hold - and finding that out after an incident is far worse than finding it out a week before renewal.
What to track per vendor
- The insurance expiry date on file
- The actual COI document, stored centrally
- Which contract or engagement that coverage applies to
Chase before it lapses, not after
Set a reminder ahead of each vendor's insurance expiry so you can request an updated COI proactively - this is far easier than discovering a gap retroactively, and most vendors expect the request as routine.