Managing Certificates of Insurance
You can document your third party’s proof of insurance and monitor and manage any omissions and exceptions to your insurance requirements. Third parties typically prove that they have insurance in place by supplying one or more certificates of insurance. The details of each certificate of insurance supplied by the third party should be evaluated for adequacy and attached to the Third Party Profile record. The Certificates of Insurance application captures the following information:
- Types of insurance you require of the third party across all the engagements they deliver to you
- Types of and limits of insurance actually carried by the third party
- Name of the agent or broker
- Name of the Insurer
- Effective dates of the policy inception and expiration
- Your assessment of whether the third party’s proof of insurance meets your requirements
- Copies of the third party-supplied certificates of insurance
On this page
Determine required certificates of insurance
After you apply an Engagement Type to an Engagement, the system automatically populates the Required Insurance Certificates based on the insurance requirements established in the Engagement Types application. The system analyzes all of the third party’s active engagement records and produces a consolidated list of all of the different types of insurance you are expecting the third party to maintain. This list appears in the Overall Insurance Requirements For Parent Third Party field in the Insurance tab of the Third Party Profile record.
Evaluate certificates of insurance
Although the Third Party Engagement use case assists you in identifying whether you have obtained current and valid proof of insurance for each required type of insurance, you must manually evaluate whether the limits of the insurance, endorsements, named insured provisions, underwriter strength, or other details are satisfactory to your organization.
Manage insurance exceptions
If the provisions of the insurance maintained by the third party are inadequate, note those items in the Review Comments field and create one or more Findings records. Findings can be monitored and managed in accordance with your organization's governance procedures, ensuring that unacceptable proof of insurance is remediated prior to signing a third party contract.