Because you are responsible –
Because your insurance policy requires it –
Because your Terms and Conditions require it–
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Open Quickbooks to your company file -
One Note here...
You could simply create a vendor type called “Subcontractor”. Since we are interested in monitoring subcontractor insurance requirements, that would probably suffice. I chose to track subcontractors by phases, though, thinking that this might have additional utility down the road. For ease of entry, you could just add the type “subcontractors” now and, if you needed it later, come back in to this drop-down to add the individual contractor types (Framer, Electrician, Drywaller, etc.). Adding just “Subcontractors” will make it easier to create the report we are going to produce later in this exercise.
Note that the fields for Expiration are already available.
The seven fields you will want to add include:
Once you have entered those seven labels, and confirmed that each is checked in the “Vend” column, select “OK”.
The seven new fields you added will be available on all Vendor "Additional Info" screens. You will use these fields only for subcontractors.
When the insurance expiration dates are passed, every time you try to transact with the subcontractor, you will receive this warning message and a suggestion to contact the sub to update the insurance coverage information.
You should not let the situation get to the point that you are seeing this warning, but if it does, immediately contact the subcontractor for the information required. Next, we will be building a report you can use to stay on top of the insurance expirations proactively.
When you see this warning, you can click “OK” and continue with the transaction. Make a mental note to contact the subcontractor regarding the expired insurance.
The information regarding insurance coverages should be available on the insurance certificates currently on file. If you do not have an insurance certificate on file for a subcontractor, contact them immediately and request an update.
The information for the Terms and Conditions renewal date will be available on the Terms and Conditions document, if you are using the Subcontractor Management System. Just look at the date of the last document and set the renewal date for 12 months in the future.
Select the fields shown to have the report show the information in which you are interested.
If a field is not on the list, but is checked in the default report, un-check it.
The nice thing about this report is that it shows which information is missing.
You can print this report once a month and flag any upcoming renewal dates. Then just email the subcontractor to let her know that you need an updated insurance certificate. This alerts the sub that you are tracking the information, and expect their cooperation.
You can also print this report when the insurance company does their annual audit of your insurance coverages. It will show the insurance company that your are serious about meeting your insurance requirements and maintaining your coverage.
Check that the report is where it should be by going to
Reports > Memorized Reports > Vendors > and look for
“Vendor List – Insurance Monitor”