The issue:

Knowing Contractor Insurance Status is Critical Risk Management

Your organization is at risk if your contractor is involved in an incident and has inadequate insurance. It's worse, obviously, if they have no policy at all.

Common incidents are property damage, vehicle crashes, material or equipment losses due to theft or vandalism, or, increasingly likely, due to extreme weather or a cyber security event.

Losses and claims involving uninsured contractors are an everyday thing. Your insurance agent can likely give you multiple examples from your industry and region.

Many purchasers don't know contractor insurance status in real-time. Meaning unquantified risk is unmanaged risk. The primary exposure here is financial liability.   

Obviously, litigation or an action by an involved third party further drives up costs and sometimes reputational damage.

The good news is that the effort, knowledge, and cost to control these exposures are relatively moderate but take some res...