Tips For Onboarding New Vendors

There are many different aspects to consider when a company is looking for a new vendor to work with. Onboarding a new vendor can be complex, so it's important to take the time to set up a standardized process that will work for your company.

One of the most important parts of onboarding a new vendor is setting up an effective evaluation and approval process. The onboarding process for new vendors and subcontractors can be time-consuming, but it's important to do your due diligence to ensure you're working with reliable, qualified partners.

In this video, we'll outline five key steps to help companies successfully onboard a new vendor. By following these tips, you can minimize disruptions and ensure a smooth transition.
Tip number 1: Start by searching for vendors with compatible insurance requirements. This will save you time and hassle down the road, but it isn’t something that you often know upfront. Finding vendors with similar work experience or utilizing a vendor database to find pre-approved vendors are two examples of how to do this.

Tip number 2: Set up a meeting to review the onboarding paperwork and any requirements listed in the contract and/or work agreement. This is an important step to ensure that both parties understand the expectations and responsibilities involved in the partnership. We have seen many vendors that sign a contract or work agreement without fully understanding what insurance limits and coverages are required.

Tip number 3: Implement a vendor platform to register and collect data from vendors. This step is VITAL for time savings. Automation is the name of the game nowadays, so it only makes sense to equip your team with all the tools they need to effectively and efficiently collect and store data from you vendors. Some of these COI tracking platforms or softwares can also send out automated renewal notices and even scan the COIs and automatically capture the data while flagging any deficiencies.

Tip number 4: Ask for references and check their reviews- This will help guarantee that they are reputable and have experience working with people just like yourself!
Tip number 5: Conduct financial screenings to help avoid any potential problems before they arise and to protect you from fraudulent activity.
These 5 tips will definitely help you start onboarding new vendors with ease. There are still many steps to onboarding new vendors that do require some effort and time, but automating whatever can be automated and implementing new strategies and software can greatly improve efficiency and accuracy.

Thanks for watching! Please check out our other insurance and vendor management videos