Do You Charge for COI's?

todd02

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We've got a client who barely had but 2-3k in premium but is requesting like 3-4 COI's a month. Starting to become an annoyance. Do you guys charge a fee for these?
 
We've got a client who barely had but 2-3k in premium but is requesting like 3-4 COI's a month. Starting to become an annoyance. Do you guys charge a fee for these?

If he's paid in full, why not give him a secure completed PDF where he fills in the date and cert holder?

Sounds like he's a contractor with those COI's? Before you even ask, I'm guessing he or the GC is also asking for "special" language on these certs.

You really shouldn't be accommodating these requests as I'm certain 99% of them are not compliant and your sticking your neck out for no reason other than to keep this guy happy.

I learned a long time ago to tell them a cert is just meant to be completed with a current date, name and address - PERIOD. The remarks section is not intended to add non-existent contractual language.
 
At that volume of requests at that volume of premium you are absolutely justified in charging a service fee for the certs...can't really do it to them now but I would make it a line item on your renewal's premium summary page.

Flat fee up front is probably your best bet, but that is your call. My opinion is to get them to agree and pay up front so you're not chasing money b/c it wouldn't be worth the hassle.

Back in the day I remember having an E&S GL quote that specified a cost per certificate issuance after the first 5 I think. Wasn't cheap either, like $150 per cert. Not that that is a good rate...this was a 20-30k policy.

I do not mean to knock the other poster's suggestion about a COI prefilled w/ coverage info, but no matter how you slice it you are opening yourself to exposure. You can lock it but it can still be typed over. Not a problem until something happens..if it is set up right your CSR or AM should be able to fire one off without missing a beat.
 
While a COI can always be altered, I believe there was a thread on that recently, doesn't allowing the insured to generate their own open up a huge E&O issue?

Also, 40-50 COIs a month seems like a lot for a 2-3k account?
 
"If he's paid in full, why not give him a secure completed PDF where he fills in the date and cert holder?"

Because that's illegal in most states that have COI laws, regulations or DOI directives. In addition, it is likely a violation of your agency/company agreement.

The COI has a place at the bottom to be signed by an "Authorized Representative" which means someone authorized by the carrier to issue a COI on their behalf. I doubt that you'll find a carrier that would allow an insured to issue COIs with different dates and certificate holders.

Also, be wary of requests for "blank" or "sample" certificates:

Virtual University - Issuing Sample or Blank Certificates of Insurance

I've seem some of the alphabet houses issue MOIs (Memorandums of Insurance) but the dates are always fixed and the documents are uneditable. Which brings up another issue...be VERY way if using a third-party COI vendor that some entities demand. I've seen two of these systems that allow the insured to enter information and, in at least one of them, the certificate holder was allowed to enter whatever they wanted under Description of Operations.
 
I've seem some of the alphabet houses issue MOIs (Memorandums of Insurance) but the dates are always fixed and the documents are uneditable. Which brings up another issue...be VERY way if using a third-party COI vendor that some entities demand. I've seen two of these systems that allow the insured to enter information and, in at least one of them, the certificate holder was allowed to enter whatever they wanted under Description of Operations.

What entities are you referring to? The insured, the person requesting the COI?
 
Los Angeles county has their own COI system they require all contractors to use. The Houston airport authority contracts with a COI vendor so that agents that insure the retail vendors in the airport must complete online COIs in this third party's system. Entities that do this refuse to accept an ACORD form from agents. That's very dangerous from an E&O standpoint.
 
Los Angeles county has their own COI system they require all contractors to use. The Houston airport authority contracts with a COI vendor so that agents that insure the retail vendors in the airport must complete online COIs in this third party's system. Entities that do this refuse to accept an ACORD form from agents. That's very dangerous from an E&O standpoint.

That is something I would prefer to avoid, but obviously you can't if you want to work with the county or airport in those instances. What about their system creates the E&O exposure?
 
Here's information from a webinar I did called "Certificates of Insurance...Or How I Got a Job in the Prison Laundry."

One of the systems I discussed requires the agent to pay for entering certificate information and for anyone accessing the certificate. One airport authority checked certificates DAILY, charging the agent 25 cents each time. The agent insured 3 terminal vendors and got hit for 75 cents daily. The agent was required to enter cancellations and reinstatements.

The agent has no control over the data once it's entered. The agency has no copy for its agency management system in the event that there is a lawsuit in the future where the COI is material and the system information is tampered with.

One system required answering potentially over 300 coverage questions, as chosen by the certiificate holder, including language such as "broad form contractual," "independent contractors," "primary and noncontributory," "severability clause," "cross liability," etc. Sometimes scanned policy forms are required which creates copyright issues.

With one particular system, the Description of Operations could be entered by the insured, blanket additional insureds could be entered by the certificate holder.
 
Yes my issue is we made $400 in commission but he is costing me $30 a month in CSR work. Pretty damn annoying. Any Captive Agents charging for COI's? I have a huge commercial client that I make 10k in commission and I could care less how many COI's they want.
 
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