Kristen Nunery warns that homegrown Certificate of Insurance tracking tools can create a false sense of security when businesses mistake collecting insurance documents for verifying coverage and compliance
INDIANAPOLIS, Oct. 21, 2026 /PRNewswire/ — As general-purpose artificial intelligence (AI) makes it easier for businesses to build their own software, Kristen Nunery, founder and CEO of illumend, is warning construction and property management companies against a costly misconception: that building a Certificate of Insurance (COI) tracking system is the same as verifying that contractors and other third parties have the insurance coverage their contracts require.
In her new article, “You Can Build a COI Tracker with AI. That Doesn’t Mean You Should,” Nunery explains that general-purpose AI tools such as ChatGPT can help businesses create applications that collect certificates, track expiration dates, and automate reminders. But those capabilities address only part of the insurance compliance process. Determining whether coverage satisfies contractual requirements involves interpreting insurance documents, reviewing endorsements, identifying exclusions and resolving discrepancies that basic tracking software may overlook.
“AI has democratized the ability to build software. It hasn’t democratized the expertise to make the right insurance decision,” said Nunery, who has spent 16 years in insurance compliance. “If you don’t have a compliance process today, you’re not automating a process. You’re automating your best guess.”
Why a COI Tracker Is Not an Insurance Compliance Verification System
According to Nunery, the critical distinction is between tracking the existence and expiration of insurance documents and verifying whether the underlying coverage meets contractual obligations.
A homegrown COI tracker may confirm that a certificate is current, record policy limits, and flag missing documents. But a current certificate does not necessarily mean a contractor is adequately insured or compliant with an agreement’s terms.
For example, a subcontractor may submit a certificate showing sufficient general liability limits and additional insured status. Yet the underlying endorsement may be a CG 20 10 covering ongoing operations only, while the contract also requires completed-operations coverage under a CG 20 37 or equivalent endorsement. A basic tracker could mark the subcontractor as compliant despite the missing coverage.
“The tracker didn’t misread anything,” Nunery said. “It never had the contract requirement, the endorsement language, or the connection between the two.”
Other potential gaps include incorrectly named insured entities, missing endorsements, inadequate completed-operations coverage, and policy provisions that fail to satisfy contractual insurance requirements. Identifying these issues requires evaluating insurance evidence in context, not simply extracting data from a certificate.
Why Insurance Compliance Verification Requires Specialized Technology
Nunery argues that businesses seeking to move beyond basic COI tracking need technology designed specifically for insurance compliance verification, with insurance expertise embedded in how the system evaluates coverage.
Unlike homegrown tracking tools, specialized compliance platforms such as illumend compare insurance documents against established contractual requirements, examine supporting endorsements, identify coverage gaps, and explain findings that require attention.
This approach powers Lumie, illumend’s specialized AI-powered insurance compliance expert. Lumie reviews certificates and endorsements against established requirements, flags potential deficiencies and provides supporting evidence for its determinations, while allowing compliance professionals to review and resolve exceptions.
“AI should do more than flag a problem. It should show you what it found, which requirement it evaluated, and the evidence behind its assessment,” Nunery said. “Lumie applies insurance expertise at scale and creates a clear record of its findings, so teams can act on routine determinations efficiently and focus their attention on exceptions that need a closer look.”
Nunery’s perspective draws on her experience building myCOI, whose technology has reviewed more than 45 million insurance documents and identified more than 2 million coverage gaps before they became claims, according to company figures.
Build a COI Tracker or Buy a Compliance Platform? The Questions Businesses Should Ask
For organizations considering building their own COI software, Nunery recommends first determining whether they need a document-tracking application or a comprehensive insurance compliance verification system.
Basic tracking needs may be addressed with spreadsheets, conventional software, or applications built with general-purpose AI. But verifying compliance requires substantially more: translating contractual insurance requirements into rules, reviewing endorsements and policy evidence, identifying exceptions, documenting decisions, and maintaining an auditable compliance process.
Businesses must also consider who will keep insurance requirements current, validate the system’s determinations, investigate discrepancies, and maintain the records needed to support compliance decisions during claims or audits.
“Building the software happens once,” Nunery said. “Running a compliance system means keeping requirements, evidence, follow-ups, decisions and the audit trail current, every day it’s in use.”
To read Nunery’s full article, visit https://www.illumend.ai/evaluation-buying/build-vs-buy-coi-tracking-software-ai
About illumend
Founded in 2025, illumend™ is the AI-powered platform redefining how businesses manage third-party insurance compliance and risk. Backed by myCOI, the leader in third-party insurance compliance management with more than 16 years of expertise, illumend reimagines compliance by guiding every step of the process—from document review and expiration tracking to risk flagging, communication, and resolution—within one intuitive system. Built on myCOI’s institutional foundation—having processed more than 45 million documents, managed over 1.2 million agreements, cleared more than 750,000 third-party partners, and identified more than two million coverage gaps before claims—illumend brings this depth of compliance intelligence into an AI-native platform. At its core is Lumie, illumend’s conversational AI guide that reads complex insurance documents, flags issues in real time, and explains them in language anyone can act on. To learn more, visit https://www.illumend.ai.
Media contact:
Michael Tebo
Gabriel Marketing Group (for illumend)
Phone: 571-835-8775
Email: michaelt@gabrielmarketing.com
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SOURCE illumend
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