Evident ID observed that 75% of third-party vendors fail to comply with enterprise insurance requirements despite being contractually obligated to do so.
“Companies are challenged to create a program that achieves a high degree of compliance and then keep it up-to-date,” says David Thomas, CEO of Evident. “This hampers their risk management efforts and wastes lots of time and money for enterprises themselves, third parties, insurance brokers and agents.”
However, research revealed that the average company has only 25% of third-parties verified, creating a significant risk of losses from under/uninsured business partners.
From BusinessWire:
● 75% of third-party vendors do not meet the insurance requirements of the companies that hire them.
● 23% (or one in five) of third-party vendors do not respond at all to companies’ requests for proof of insurance.
● At least one in 10 third-party vendors falls out of compliance without notifying the verifying company.
