How do other companies/organizations manage the requirement for ensuring Vendors they do business with have the proper/agreed upon insurance limits with respect to the negotiated Insurance limits and conditions within an agreement?

• Do companies/organizations require Vendors to submit copies of their Certificate of Insurance for verification?
• If so, given that insurance coverage is for a specified time period, typically 1 year, how do other companies/organizations ensure the Vendor continues to have insurance coverage and maintain coverage minimums for multi-year contracts?
• Do companies/organizations follow up with Vendors on an annual basis?
• If so, is the follow up based on Vendor contract anniversary (MM/DD) or Vendor insurance expiration date? What are some follow up procedures/steps that other companies have in place?

 

Categories: P2P Archive
SRC Type: Contract Management, Sourcing Management, Third Party Management