Risk Management Expert: Enhancing COI Reviews, Addressing Risk in Inexperience & Modernizing Insurance Practices
Sep 18, 2024
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In this engaging conversation, Anne Grubish, a risk manager with over 30 years of experience, shares her insights on navigating the complexities of Certificates of Insurance (COIs) in the construction industry. She highlights the perils of inexperienced risk managers and the critical importance of ongoing compliance checks. The discussion also touches on the evolution of technology in risk management, emphasizing the need for human oversight amidst AI advancements. Anne’s expertise illuminates the balance between effective risk management practices and the importance of collaboration across departments.
The transition from diverse roles within the financial and insurance sectors equips risk managers with the necessary skills for effective risk strategies.
Integrating technology into risk management enhances efficiency in COI tracking while still requiring expert human judgment for informed decision-making.
Deep dives
The Path to Risk Management
A journey into risk management often begins with diverse career experiences, as highlighted by the guest's transition from banking to insurance and eventually to risk management within the construction sector. This pathway involved starting as an insurance compliance coordinator and advancing through roles that emphasized not only compliance but the deep involvement in managing subcontractors' insurance. The skills garnered from roles such as underwriting and insurance agent equipped the individual with a comprehensive understanding of both the technical and practical aspects of risk. This evolution underscores the multifaceted nature of risk management careers, showcasing how varied experiences can culminate in effective risk strategies.
Importance of Certificates of Insurance
Certificates of Insurance (COIs) play a crucial role in risk management, serving as evidence that subcontractors carry the requisite insurance coverage. Understanding the limitations of COIs is essential, as they do not inherently confer rights or guarantees of coverage; further documentation requiring endorsements can be necessary for comprehensive compliance. Due diligence involves not just collecting COIs but validating and ensuring that all required documents are in order, otherwise exposing the business to significant liability. The discussion emphasizes that without thorough oversight and documentation, organizations cannot adequately mitigate risks associated with subcontractors.
The Role of Technology in Risk Management
The integration of technology has significantly transformed risk management practices, particularly in tracking and managing COIs more efficiently than paper-based systems. Today’s tools enable better organization, tracking of expiration dates, and managing endorsements, which are vital for ongoing compliance checks. While technology can enhance operational efficiency, the human element remains irreplaceable; expert judgment is critical in interpreting complex insurance policies and making informed decisions. The evolving landscape suggests a future where technology supports risk managers rather than replaces them, emphasizing a hybrid approach that marries human expertise with technological advancements.
In this Greatest Hits episode of Risk Management, Brick by Brick, host Jason is joined by Anne Grubish, a Risk Manager at Kraus-Anderson. With over 12 years of experience at Kraus-Anderson and 30 in the field, Anne has a deep understanding of risk management strategies and has been instrumental in the development and implementation of effective risk management frameworks. Anne is renowned for her analytical skills, attention to detail, and ability to communicate complex information to stakeholders in a clear and concise manner.
Together, Jason and Anne discuss why giving COIs to inexperienced risk managers is a risk in itself, the importance of being able to speak fluent insurance, and what helps mitigate the divide between departments in insurance companies.
To find out how TrustLayer manages risk so that people can build the physical world around us, head to TrustLayer.io.
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Previous guests include: Seth Hausman of Kraus-Anderson Insurance, Matthew Meyer of The Horton Group, Diana Rich of Foundation Building Materials, Christy McHenry of Suffolk Construction, Mark Rieder of NFP, and Cory Mangum of Primoris Services Corporation.