You have carefully allocated risk in contract drafting. It is clear that the other party is responsible for their conduct and any damages your organization suffers. You go the extra step to require that the other party carry relevant liability insurance. In some cases, they must also name you as an additional insured party on their policy.
The contract is executed. Now what? You add the contract and its expiration date in the contract management spreadsheet. You even collect the insurance certificate at signing.
What is the problem? The problem is that the insurance certificate expires before the expiration of the contract. It is quite rare that the insurance certificate and the contract share the same time line.
Contracts often include provisions that require a party to maintain insurance for certain risks throughout the life of the contract. The only proof is the insurance certificate itself. The risk is that an uncovered event occurs imposing costs on your organization. Your recourse is against the other party, but your ability to recover is complicated or reduced because the insurance carrier rightly denies coverage.
To deal with this risk, it is important to track insurance certificate due dates independently of contract due dates. Unfortunately, contract management spreadsheets often cannot bridge this risk management gap.