Risk & Compliance
These questions help uncover red flags like legal violations or financial instability.
background disclosure questions
This number identifies a business for federal tax purposes.
FEIN (Federal Employer Identification Number)
Contracting with an unlicensed third party can lead to these risks.
legal, financial, and operational risks
A company or group authorized to act as a single entity.
corporation
This process ensures third-party compliance and oversight.
due diligence
Regulators expect companies to treat these activities as internal operations.
third-party activities
This form collects tax information from independent contractors.
W-9
This insurance covers mistakes in professional services
E&O (Errors & Omissions) insurance
This process legally forms a corporation.
incorporation
Regulators expect companies to maintain this for third-party risk.
documentation
This type of oversight is crucial during audits or investigations.
risk assessment
This number is used to identify insurance producers.
NPN (National Producer Number)
The minimum McGowan requires coverage for E&O insurance.
$1,000,000
A legal entity has this kind of identity
separate from its owners
These links help verify a third party’s license status.
State License Verification Links
Regulated industries are held accountable for their own conduct and this.
behavior of vendors and partners
This includes HQ address, phone/fax, and important contacts.
Corporate Profile
E&O insurance helps with these types of costs.
litigation and disciplinary proceeding costs
This type of entity passes taxable income to its owners.
pass-through entity
This is the reason due diligence is critical in regulated industries.
Accountability
These consequences can result from ignoring red flags in third-party relationships.
enforcement actions, fines, or reputational damage
This document helps verify a third party’s licensing status.
Copy of license
This is the reason organizations care about E&O coverage.
risk transfer and protection from claims
This structure offers flexibility in tax, ownership, and compliance.
LLC (Limited Liability Company)
This process ensures that a company has taken reasonable steps to assess and monitor third-party risks, often documented to demonstrate compliance during regulatory reviews.
risk-based assessment via an established due diligence procedure