Managing Insurance Coverage for Contracts

About the Program

Category: Risk and Emergency Management (Best in Category)

Year: 2010

Insurance certificate tracking is a critical problem common to all public and private entities, as coverage frequently expires during the term of a contract and it is rarely a priority to track the expiration of an individual’s coverage. When faced with solving this problem, Multnomah County employed a strategy of process redesign, leveraging existing technology to create an effective and low-cost solution. Under this new process, contractors or their brokers send scanned copies of their insurance certificates to a single e-mail address. Certificates are reviewed by the Risk Management staff for sufficiency and contact is made with the contractor or broker to correct any problems that arise. Key information is then entered into the county’s enterprise system, SAP. The certificates are stored in a shared directory accessible by staff across the entire organization who are responsible for contracts. Finally, SAP generates letters to notify contractors with expiring insurance of the need to submit a new certificate. Any changes to the policies during the policy life are automatically forwarded through the insurance mailbox for Risk Management’s immediate attention. Creating this new system using only tools already owned by the county cost Multnomah County almost 70 percent less than the cost of an off-the-shelf solution. Multnomah County is now able to effectively ensure that its contract risks are covered. Contractors and insurance brokers also receive improved service.