New Certs sent at renewal - how many do it

[etimer]

I know of one contractor that will request from 20 to 40 (or more) different certs a year. These certs are a non-chargeable event.

I was just wondering, at annual renewal, to all that received certs. the previous year, how many agents automatically send new certificates to those people.

[darnovak]

Depends on the commercial client. On most commercial accounts (and significantly in advance of renewal) I send a list of all cert holders and additional insureds for the current policy period, request the insured line out the ones not wanted at renewal, sign the request, and get it back to me in time to order the renewal accordingly. Some clients only do "one shot" jobs and never need repeat certs - none sent in this case unless a job is still in progress. Some do jobs and have to furnish certs (and sometimes A/I status) for 3 years from completion. All this is noted in the agency management system (better get a damned good one) with appropriate and timely follow-ups. You have to pay attention to detail in this business or you are courting trouble and look like (and are) an idiot. Hope this assists you.

[etimer]

What brought this up was talking with someone that woks in my City's second largest agency. I can't mention the first largest because they are known nationally.

Anyhow, over the past 10 years the second largest has bought out most smaller agencies in the area and who knows the volume they do. They told me they do not send contractor certs out upon renewal because of the frequency of changing addresses, job numbers, etc. They send certs out upon request.

I'm one of the little remaining dinosaurs and can / do send out certs. from last years list. Sometimes they need additional insured status for one contractor and the next year that contractor doesn't require it. Some underwriters are happy to not have a lot of different additional insured. I subscribe to IRMI and also get e-mailed stuff and there has been a lot of court cases and bru-ha-ha (sp?) about AI status. Enough that someone could write a book. Actually I think I have one an IRMI manual about AI.

Anyhow I was just taking a non-scientific poll.

[Victoria860]

In my few years experience at an agency the procedures changed depending on which account manager I worked with. Some just told me to send out new certificates at every renewal and others would have me send the current list for updates and then go off that when it came back.

Every company or contractor that requires a certificate has different expectations. I especially liked when the insured would send that portion of the contract pertaining to insurance because it generally specified the requirements and if there was a period after the completion of the job that they had to provide certificates for.

Hope this kind of helps. It is just my two cents.

[VAAcctMgr]

The legal and service issues of certificates are finally getting the attention they have deserved for many, many years. We handle our certificates much like some of the other agents who have responded in that we ask our clients to update the current holders on file prior to sending out the renewal certificates. Our agency is highly customer service oriented and we prefer to be pro-active renewal on behalf of our clients. There are unique reasons for each account type. Contractors can have issues when their certificates on file are expired delaying checks for jobs completed, causing ill will with their general's at audit time, fulfilling contractual obligations for completed operations for a stated period of years after the work has been completed, etc. It may be a service contractor that can't begin work at the premises they contract with, without evidence of their coverage.

In the age of technology, it is very easy to email or fax certificates (with electronic signatures, etc.) and also still use the Postal Service when working far enough in advance of expiration to make this a seemless process for your client. They should not have to call an agents office for something we all know is required each year and is part of the service we provide for our clients.

As professional agents, we spend hours upon hours on "non-chargeable events". It is called excellent service and that creates outstanding retention.

Treat your clients (large or small) like you would want to be treated and you will be successful. The second largest agency in your area that you mention probably has a reputation that reflects their philosphy.

Best of luck to you!

[Forum Reader]

Personally, I think the best solution is to ask the client who needs a certificate. A company's insurance information, in my opinion, should be supplied only to those with a "need to know." Once that need has passed, there is no sense using your time to issue them nor to spread around your client's insurance carrier/limit info to entities that no longer have any business having that info.

[MAG]

I believe the best procedure, as has already been stated, send your clients their certificate list prior to the renewal and let them advise you which ones they are going to need at the renewal. This way the agent isn't sending out 50 certificates with year old addresses so that 25 of them will be returned in the mail. It also is yet another way to contact your client for that "yet another service we provide" that we all like to pride ourselves in providing to our insureds.

We also request copies of contracts from our insureds for review of the insurance requirements. I must say, it would sure help if they would let us look at them BEFORE they sign them. What a nightmare! An insurance agent almost needs to be an attorney now days to make sense of those subcontracts.

It is a very good policy to review your insurance certificates at renewal each year, compare the wording, endorsements that were provided, etc. to make sure that the renewal polcies will include the same endorsements. With the rate tht companies are revising their additional insured endorsements, it seems that every renewal the form editions have changed which of course means the wording has changed and of course that means I have to look for another coverage endorsement that will provide the same coverage as required in the contract my insured signed BEFORE I reviewed it.

Certificates - no we dont' charge for them, its a service proviced to clients. Gone are the days of the "any and all work" certificate and hello to the days that I spend 50-75% of my time reviewing subccontracts and coverage endorsements so my clients can get paid!

Oh, and don't ya just love the one where you sent the renewal certificate 3 months ago with all the required wording, endosements, etc. and then you get a phone call "so and so won't pay me because they say they didn't receive our renewal certificate. Didn't you send them one?". Of course we sent it, they just don't want to cut the $50,000 check so they say they don't have it to give them a few more days to keep that $50,000 in the bank collecting interest.

Insurance, ya gotta love it!

[etimer]

That does happen a lot and is one of the reasons the person I know at the big agency said they only send certs. out when requested.

"they say they didn't receive our renewal certificate. "

In my office I have a client that works for a GC and the GC wants a cert for each job with the name and job number on the cert.

[MAG]

I believe that being proactive and sending renewal certificates for our insureds is a service that is not only in most cases is expected but also prudent. Most contractors work for the same GC or Home Builder from year to year. Yes, some require a new certificate for each job, some do not. Our insureds know who they are currently working for, who still owe them money, etc. I do not, which is why we send a list. Most contractors receive monthly payments from their GC or Home Builders and depend on that payment to operate their business.
What would it say about me as an agent if I refused to send renewal certificates just because I know I will probably have to send it again when a check is due? That is our job, to service our insureds to the best of our ability. Do I like sending the same certificate two, three or more times? Of course not; however, when my client calls, I check our notes, advise them we sent the certificate on such and such date, verify the fax number or mailing address, pull the original certificate from t-filing and re-send it. Myclient then gets paid. They are happy, and we are happy they are happy. Happy clients equal retention. Retention is a good thing.
With today's insurance market changing on a day to day basis, customer relations become very important. Yes, price is important also; however, if your clients are happy, if they know that you have done everything you could to meet their insurance needs, if they know that there were times you went over and above the normal call of duty, they are not going to be as quick to "market" their insurance at the renewal as a client who was not satisfied with their agent and the services they received.

[d's insurance store]

I think at this point in the discussion it's important to bring up the differences between the small artisan account, generating minimum premium and minimal commission (and maybe a broker fee) and the account of the mid to larger contractor where premium and/or fees offset the cost issues of playing the certificate game.

When an agency has primarily the small mom/pop artisans with commission amounts of less than $250 per year (maybe also the agency handles the personal lines for the same account) and lots of certificates necessary to generate and resend, naturally there will be resentment of the work involved because of the size of the account. The insured has no idea of the work involved, even if its just reprinting and refaxing off the agency system, or the annual updates needed to keep the cert current. When you're talking about account size that generates $1000+ in income, then the proactive customer service attributes talked about here make perfect sence. Small accounts with lots of service work require fees that render, at least in the eyes of the insured, the total cost to feel prohibitive. I've found most insured's think we keep at least half the premium for ourselves anyway, so when you tack on $100-$200 preemtively for future service work, they often feel ripped off, without realizing that at best, $1000 in premium is only $150 in commission.

[etimer]

How true ........ how true.

There are more mom and pop artesian accounts than the $25,000 a year premium account.

If you are doing $100 of work each year, for a $100 commission, I will say you are not making money. If someone is going through all the motions that some of the above posts stated, on that $100 commission account, you are not making money.

Personally I still have some $500 minimum premium accounts that do need certs (they are not contractors). Some years they may need 2 certs, some years maybe 10 certs and that varies from year to year. For me to sit down, put together a list, get that list to the client, receive the client list, send to all cert holders that may or may not need a cert in the coming year, would be a darn ridiculous business model. So this year if the client only requests 2 certs it will make up for the years they needed 10 certs.

You were the only one to finally get to the bottom of the question, different accounts deserve a different service. To paint a standard protocol for all accounts won't work in a profitable agency.

[darnovak]

No need to "sit down and make up a list"... those days are long gone.
Your agency management system should be able to create a list of cert holders indicating which are plain vanilla and which are A/I. Email or internal fax this to the insured and wait for the email or fax reply. No paper! This way I can spend more time on doing and learning "insurance" and providing meaningful service instead of doing "drudge" work. Ain't technology grand?
No management system ? The dinosaurs all died out centuries ago. Junk that typewriter and enter the 21st century. regards

[etimer]

I've had computerized management systems long before Acord form were fillable. I used programs that could / would make them fillable. Six years ago (maybe more) I did away with any fax machines and all incoming and outgoing faxes are handled by computer. All records of sent received faxes are stored and recorded in the Contact Management program.

I find it interesting that some of the posts worry about E&O exposure if you don't send all certs from last year. Then posts say, no worry use your management program and send last years, no work, no fuss, no time. Well, isn't sending things without checking for accuracy and exposure? That GC that moved may not get his cert. or the cet holder is an Inc. this year. Etc. Plus I have some business owners that are very sensitive to paper waste, to the point that they request I don't send a cover page with a cert. If I go sending over 50 certs, some of which won't be needed, rest assured I'll be getting a phone call from them.

On the marketing / keep in touch side, if they call when a cert is needed it is a good chance to talk with them, how's business, how are the kids, etc. . It's always good PR to have / keep on a friendly basis with a client.

No need to "sit down and make up a list"... those days are long gone.
Your agency management system should be able to create a list of cert holders indicating which are plain vanilla and which are A/I. Email or internal fax this to the insured and wait for the email or fax reply. No paper! This way I can spend more time on doing and learning "insurance" and providing meaningful service instead of doing "drudge" work. Ain't technology grand?
No management system ? The dinosaurs all died out centuries ago. Junk that typewriter and enter the 21st century. regards