Certificates of Insurance, or Certs, as they are also known by, are common documents requested to verify insurance of a businesses. Everybody from brokers, policy holders, auditors, lawyers, accountants, contractors and many others, spend massive amounts of time in tracking, obtaining, and issuing Certs. Lots of effort is put in for a piece of paper that is only good the day it issued. A Cert is not an insurance policy and only shows an outline of coverage limits and very few coverage terms. So why are they in such demand? Well in my opinion, it is because there in no other better alternative to determine the insurance status of a business.
This may change in the near future with blockchain. An open ledger concept that could make checking insurance coverage of others, in real time, a simple task. The ability to securely go online and see what insurance coverages a business has at any time would replace the need to print certificates of insurance. In addition the business owner is assured that the insurance information that they need to show, is all that is seen. Historical records of insurance policies can also be placed on the blockchain, so they can be retrieved as needed.
Most business transactions between two parties, want to know the other is insured. This need is not going to be replaced anytime soon. Having an open ledger that shows the insured status at anytime is in the near future with blockchain. Goodbye old Certs !
Until next time be careful out there and know your risks.
Posted by G. Kevin Nemith. Agency Leader CNC Insurance & Pfister Insurance, for the Hilb Group of the Mid Atlantic
knemith@hilbgroup.com. www.hilbgroupma.com
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