It’s important to review your nonprofit insurance policies periodically. The activities and operations of your nonprofit may change over time. And the coverages available to nonprofits may also change over time. As things evolve it’s critical that you manage risk by verifying that your coverage is up to date and addresses the unique needs of your organization.
The easiest time to do this review is at your annual renewal. Hopefully, your broker is giving you a heads up about your upcoming renewal 60-90 days in advance so that you have time to take a look at your coverages, ask any questions you have and add or delete coverage as needed. Remember that your insurance program is completely dynamic, and you can change it anytime. However, it’s good to have a set time each year to devote a little time to the project of assessment. Yes, we know that nobody likes this activity but it’s necessary!
Here are some things we recommend:
- Refresh You Knowledge: Take a few minutes to consider the various nonprofit insurance coverages and how they relate to your organization. An understanding of the basics makes it much easier to make the right choices and have a productive conversation with your broker. We invite you to use our online resource:
- Have Things Changed? If you’ve had any changes to your operations or activities, then verify that those are accurately reflected in your insurance. Communicate these changes to your broker so that your underwriter can maintain full knowledge of the risks that need to be included. Note that failure to communicate these changes could result in an uncovered claim.
- Evaluate Your Limits: No broker can give you specific advice about what your coverage limits should be. However, you should be able to get advice about the risk factors you should evaluate in considering what limits are adequate for your organization.
- Time to Add Coverages: Initially many organizations only include the basic coverages of General Liability and Directors & Officers Liability in their insurance program. As operations change and activities are added there are often other coverages that should be added to ensure proper protection. Your risks and how to insure them need to be reviewed periodically so that key coverages aren’t missing from your nonprofit insurance program.
- Update Your Insurance Contact Information: Make sure you know who to talk to about your 1) coverage analysis, 2) policy changes and certificate requests, 3) filing a claim, and 4) billing questions. Gather information on how to do these various transactions. Via phone? Via email? Online? Client Portal access? Keep this information handy so that it’s always easy to get what you need when you need it.
We know that insurance always get’s put at the bottom of your to-do list. But that doesn’t mean it’s not vital to the running of your organization. These few steps once a year help you know that your nonprofit insurance program is in order so you don’t have to think about it except when absolutely necessary!