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 Automated Risk Transfer© with Automated Insurance Verification®  

Simplifying the Complexity of 3rd Party Insurance Coverage Compliance

by

Robert J. Marshburn, CRM, CIC, ARM, CRIS, CISC, CCIP

Founder & CEO | Certified Risk Managers LLC

CertifiedRiskManagers.com 

 

Automated Insurance Verification® – Simplifying Insurance Complexity with Advanced Automation.

“Simplicity is the ultimate sophistication.” – Leonardo da Vinci.

 

Our exclusive solution helps you develop Optimized Insurance Contract Requirements© with Enhanced Verification Procedures© for Risk Transfer of your Third-Party Risks.

Our powerful, user-friendly Automated Insurance Verification® Solution uses Advanced Technology with Enhanced Verification Procedures© to help Develop, Verify, Expose, AutoCorrect, and Activate Coverage Compliance automatically with your Optimized Insurance Contract Requirements© at a fraction of the usual time and expense. Details are at: AutomatedInsuranceVerification.com

This Advanced Technology System Is Dedicated to the Support, Encouragement, and Loving Memory of Jason Robert Marshburn -- Computer Genius and Visionary, 1970 to 2021.

Certificates of Insurance may verify the Existence of an Insurance policy, but they do not even attempt to verify the actual Coverage in force under the insurance policy for your 3rd party risk transfer. Insurance policies can have many gaps, limitations, exclusions, and specific requirements to trigger the activation of coverage.

You cannot rely on Certificates of Insurance alone to verify third-party Insurance coverage!

 

 

How do you know if your 3rd party Vendors and Contractors have any of these restrictions or exclusions or if they are actually complying with your Insurance requirements, especially with so many Insurance Companies issuing “Restricted Coverage” policies that offer deceptively inferior insurance coverage that contains these gaps, exclusions, limitations, and pre-conditions for coverage?

 

If a policy has no coverage for the Vendor/Contractor, there is also no coverage for your Indemnity as the Additional Insured named on their policy!

 

Our online Automated Insurance Verification® Solution is an online Simplified, Comprehensive, User-Friendly, Advanced Technology Service with Automated Enhanced Verification & Activation Procedures© that helps screen, activate, and maximize key Insurance Policy Coverage Protection provided by the policies of 3rd-party services, vendors, and contractors at a fraction of the usual time and expense.

 

We have combined our more than 40 years experience and expertise as Insurance "Deep Coverage" Compliance Experts to develop and reverse engineer our proprietary Coverage Compliance Verification© System and transition it into an Automated Solution. This is much more than a mere Certificate of Insurance management and tracking service. Our System actually helps to automatically Develop Optimized Insurance Coverage Requirements©... and then helps Verify, Expose, and Automatically Facilitate Corrections of non-compliant Insurance policies and endorsements to bring them into "Deep Coverage" Compliance with your Insurance Contract Requirements to meet the conditions to Activate Coverage for each item for each Contractor!

 

From our work as Expert Witnesses and Consultants in court cases where coverage has been denied we know that THE REALITY IS THIS:

 

Many things NOT shown on Certificates of Insurance (COIs) endanger YOUR Liability protection as an Additional Insured on the Insurance Policy of your 3rd party Contractors whether there is standard OR substandard coveragemany of which they or their insurance Brokers may not even know about!

 

At one professional graduate educational insurance workshop we conducted, the chief nationwide claims executive told a stunned group of insurance brokers: "Brokers need to understand that we don't expect to ever pay a claim under this type of policy. All they are getting is paper to allow them to get on the job."

 

In other words, the Certificate of Insurance makes it look like they have coverage... but they don't!  Following are some examples of coverage issues that are not shown on Certificates of Insurance:

 

1.  Certificates do NOT show if coverage complies with your Contractual Insurance Requirements – the Certificate of Insurance picks and chooses what to tell you – and can leave you with NO coverage even although there appears to be apparent "Insurance Policy Compliance" with your requirements!

2.  Certificates do NOT show “Restricted Coveragepolicy exclusions & endorsements that result in NO coverage, or reduced coverage for you – There are many of them!

       a.     Restrictions, Exclusions, or Limitations for location, types of ongoing or completed operations liability, type of work, amended definitions, and many others!

3.  Certificates do NOT show exclusions or limitations for Contractual liability that is designed to cover your indemnity, changes to the “insured Contract” definition, or Vendor/Contractor employee “action over” exclusions for employee liability—all of which result in no coverage for your Indemnification on these very expensive matters!

4.  Certificates do NOT show Exclusions for Property Damage liability for completed operations, including Construction Defect liability done by Subcontractors.

5.  Certificates do NOT show Prior Work Exclusions, many under various names, such as:

        a.     Montrose Exclusions, Continuous Injury Coverage Exclusions, Modification of Occurrence Definition, Continuous and Progressive or Pre-Existing Damage Endorsements, etc.

        b.     All of these endorsements can have the effect of deleting Completed Operations Coverage Liability, including coverage for Construction Defect liability!

6.  Certificates do NOT show omnibus Contractor’s endorsements that limit or exclude multiple coverages that are otherwise expected and included in standard Liability policy provisions! One commercial liability underwriter said "We put all the bad stuff in that one endorsement hoping they won't notice."

7.  Certificates do NOT show if there is "Deep Coverage" Compliance with waivers of subrogation - even if stated on the COI.

8.  Certificates do NOT show Primary and Non-Contributory Compliance for Underlying AND Excess policies that can shift the cost to you, instead of the contractor you hired.

9.  Certificates do NOT show if the correct specific Additional Insured Endorsements have been used for both ongoing and completed operations liabilities – they may be on the policy, but not activated to provide coverage due to inaccurate wording, or a lack of precise language for the Insurance Contract Requirements to fit the circumstances!

10. Certificates do NOT show the failure to use the correct Additional Insured Endorsements for the relationship of the 3rd party Insured to the Additional Insured

11. Certificates do NOT show details of any large SIR endorsements and their very real dangers of providing NO coverage at all for either defense or liability costs if not paid!

12. Certificates do NOT show whether the correct Additional Insured Endorsements have been used for any Subs hired by your Contractor, especially for conditional Automatic Endorsements.

13. There are countless other Insurance Restrictions, Limitations, and Exclusions too numerous to mention including key changes of Policy terms, definitions, conditions, and specific Insurance Policy Provisions and Requirements that must be complied with to activate coverage for the Insured – and for you as an Additional Insured – all of which can result in loss of coverage for you.

 

**The worst part – Under most commonly used Additional Insured forms, including the newer ISO forms, your written Insurance Contract must specifically and explicitly Require (1) the limits of coverage and (2) the types and extent of coverage. Otherwise, there is NO coverage beyond a narrow reading of only the clear, unambiguous minimum written Insurance Contract Requirements even if the contractor's policy contained and would otherwise provide higher limits or broader coverage

In fact, the very same policy from your contractor can provide different kinds and amounts of coverage for different clients based upon the specific wording of the Insurance Contract Requirements between the parties since these endorsements are specifically written so there will be less coverage, or no coverage at all, because of less than optimal precise wording in your Insurance Contract requirements!

Your written Insurance Contract or Agreement Requirements essentially become a Policy endorsement that can limit, restrict, or exclude coverage if it is not written properly!

Please click the following link to see how Unclear Insurance Contract Requirements = NO COVERAGE

We help you update your requirements to have Optimized Insurance Contract Requirements© to cover these matters!

Then, we help you Verify the Actual Coverage under the policies through our Automated Enhanced Verification Procedures© so you will have the protection you expect!

As professional educators we have for many years taught the industry about these problems and personally helped many of our clients using our proprietary Coverage Compliance Verification© Solution. We have now integrated the laborious and time-consuming complicated manual process of the Coverage Compliance Verification© method into the Automated Insurance Verification® Solution with the expertise and principles from the previous CCV system but using Advanced Technology to automatically correct these issues far more efficiently.

 

From our work as expert witnesses in consulting and court cases and as Coverage Compliance Experts we know that if you are relying on Certificates of Insurance for tracking and verification of Insurance coverage from your 3rd party contractors you may have Policy document compliance with your requirements, such as a CGL or Excess Policy, but may very well not have the correctly worded Insurance Contract Requirements necessary to trigger the activation of the actual Coverage Compliance you expect due to Policy wording, exclusions, restrictions, limitations, and requirements not shown on the Certificate of Insurance (COI) that are necessary for coverage such as those discussed above! The Certificates themselves disclaim any liability for actual policy coverage, and the Insurance companies will apply a very strict and narrow and minimum legal coverage interpretation based on the requirements not satisfied for the Policy coverage to apply, rather than the expected coverage as shown on the Certificates!

 

The SolutionUntil now it was expensive and complicated using traditional time-consuming manual methods requiring the advanced expertise of knowledgeable risk managers to detect and correct these issues. However, by combining our expertise with advanced automated online technology we are now able to offer this service at a fraction of the time-consuming manual expert method and cost required in the past!

 

Our online Automated Insurance Verification® Solution handles these issues using state of the art technology. This goes beyond mere management and tracking of Certificates of Insurance for Policies, Limits, and Additional Insured Endorsements  — Our Program actually helps (1) Develop and provide the required Insurance Contract provisions, (2) Verify "Deep Coverage" Compliance, (3) Expose Non-Compliant Policies, (4) Automatically facilitate specific necessary Corrections and (5) Activate Coverage Compliance with your optimized and enhanced Insurance Policy Requirements as discussed above, all while keeping you advised of the status for each item for each Contractor and provide you with documentation of such!

 

Using our System can help you Transfer millions or even billions of dollars of 3rd Party Risk Exposure away from you to the responsible parties!!

 

HOW IT WORKSUpon receipt of (1) your brief Intake information and (2) your Contractual Insurance Coverage Requirements for your 3rd party Contractor/Vendor, we set up and provide you with the following:

1.  A customized analysis, review, recommendations, and Addendum of valuable Enhanced Verification & Activation Procedures and Insurance Requirements necessary to Activate even standard coverage that most likely is not in your current Agreement's Insurance Requirements and yet are critical to the establishment and verification of effective Coverage, not just Policy Compliance. This includes essential provisions for Insurance Contract Requirements that create a Trigger to Activate coverages as discussed above.

2.  Risk Management provisions detecting and correcting many coverage gaps, limitations, exclusions, difficulties, and complexities on a pro-active basis for Traditional or Wrap-Up insurance policies.

3.  Optimized Insurance Contract© provisions to Activate Insurance Coverage that Transfers Risk to your Contractor's Insurance company by satisfying their Insurance Policy requirements for the coverage to apply.

NOTE: ***We know of no other System providing these items that helps automatically (1) Develop; (2) Verify; (3) Expose; (4) Correct; and (5) Activate Insurance Policy Coverage Requirement Provisions to help maximize actual available Coverage as a result of your Optimized Insurance Contract Policy Requirements©.

4.  We Prepare and communicate the Insurance Requirements Guide for the Contractor and/or their insurance broker for the Insurance Coverage Compliance requirements.

5.  We work with Contractors to Inform, Educate, Verify, and Automatically Facilitate any Corrections needed with non-compliant policies with specific information of what is needed to bring their coverage into "Deep Coverage" Compliance with your Enhanced and Optimized Insurance Contract Requirements©.

6.  All data and documentation of Coverage Compliance (or Non-Compliance) is automatically provided to you for the status at a glance of each item of your Insurance Contract Requirements for each Contractor along with copies of all communication and documentation we perform in your behalf freeing up your time for other matters.

7.  All of this is done automatically by us for you. Communication and documentation with you is customized according to your choices as to whom, what, when, how often, at what times, and how much information you want us to communicate to you or others in your organization, and to your vendors on an automatic basis for them to comply with your specific Contract Insurance Requirements and advise and warn you of non-compliant issues so it is easily available for your online reference at any time.

8.  Our proprietary online Automated Insurance Verification® Solution with our Database of Prohibited, Restricted, and Approved endorsements helps identify policies or endorsements that could reduce or even exclude your Insurance coverage protection from your 3rd party contractors and vendors and automatically facilitates their correction.

9.  We Provide ongoing as well as Automated Renewal Verifications per your preferences on a continuing basis for all your vendors and contractors with the benefits shown above.

10.  All of these Enhanced Services are included for the same or less cost than many pay for Certificate of Insurance Management and Tracking alone!

11.  Why use a Certificate of Insurance Management System when what you really want and need is a Risk Transfer & Coverage Compliance Verification Solution?

If you need or would like to explore additional expert Risk Management Educational or Training Services, we also provide the following on a reduced fee basis for our clients enrolled in the Automated Insurance Verification® Program:

To investigate the significant (1) Cost-Reduction, (2) Labor-Saving, (3) Compliance-Enhancing, and (4) Risk-Transfer benefits of the Enhanced Verification & Activation Procedures© of the Automated Insurance Verification® Solution for your specific needs, please click on this Customized AIV Demo link, or insert "AIV Demo" in the subject line of your email to me personally at Bob@CertifiedRiskManagers.com.

 

We will arrange a Customized AIV Demo for you to see first hand the simplicity, economy, and power of the AIV™ System in dramatically increasing Vendor Compliance and reducing risk; providing the Broader Coverage you expect from your 3rd party vendor/contractor polices; automatically Transferring your Risk to 3rd party contractors; and reducing your personal time and expense in managing and verifying these matters.

 

Mark Twain is reported to have said, “If I had more time, I would have written a shorter letter." We have taken the time to make the whole complicated process shorter, simpler, and far more efficient by integrating advanced technology automation from Evident to reduce these detailed and complex Insurance matters into a simplified, effective, user-friendly Solution.

 

 

This Advanced Technology System is Dedicated to the Support, Encouragement, and Loving Memory of Jason Robert Marshburn -- Computer Genius and Visionary, 1970 to 2021.

 

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Automated Insurance Verification® is a Registered Trademark with the US Patent & Trademark Office for our Proprietary Automated Insurance Coverage Compliance Verification System

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