Time To Talk Insurance
This Months Topic: Identifying Risks for Non-Profit Organizations
Most Nonprofit Organizations have a very limited understanding of the insurance industry and the recent and ongoing changes in the insurance marketplace. When shopping for insurance a non-profit organization has a very limited market and is at the mercy of their insurance agent’s professional knowledge of non-profit insurance contracts. All licensed insurance agents in Ohio
Most of my competitor’s insurance contracts are missing hundreds of specialized coverage’s, millions of dollars of liability and property coverage’s and their insurance premiums are extremely overpriced. Here are just a few examples of some missing coverage’s: 1. Donation Assurance – Retracted donations. 2. Liberalization Coverage - Revisions in the State of Ohio
That’s why it is imperative for all active Board Members and Managers to work in unison and become extensively involved in the insurance decision making process, have an objective risk management program in place to evaluate current insurance market trends, and work with an insurance agent that has the non-profit organizations financial and legal interests in mind. For Example: The recent market changes in Employment Practices Liability Insurance have lowered the insurance premiums for this coverage by 75% and have made this specific coverage available thru most insurance carriers. Just a few years ago this coverage was only available thru a small number of insurance carriers and was very expensive to purchase. A local competitor of mine was charging a local non-profit community organization over $5,000 for this coverage and I reduced the premium to $1,400 and increased their coverage’s considerably.
Today, I’m seeing very destructive trends in a majority of all non-profit organizational operations that include…1. The board members are not including themselves in the insurance decision making process and are allowing the managers to make all the insurance decisions. 2. Organizations are listening only to their current insurance agent are not educating themselves by searching the marketplace for better insurance coverage; most insurance agents are only interested in keeping the insurance contracts with their current insurance carrier and are not working in the best interest of the organization to lower insurance costs and increase coverage’s. 3. Organizations are not placing their insurance contracts out for bid every few years to ensure their getting the best possible product available at a competitive price. 4. The managers think they have a clear understanding of complex insurance contracts and choose not to listen to the industry professionals because they feel they are protected properly by their current insurance company and agent.
All non-profit insurance contracts are very complex in their definition of what’s covered and excluded. That’s why all insurance contracts need to be evaluated annually for changes in contractual policy language, new or improved insurance products available in the insurance marketplace, and changes in exposures. There are thousands of insurance companies and agents eager to sell you a product, but there are no two insurance contracts that are exactly alike. If you are a Board Member or Manager of a non-profit organization you can be successful in fulfilling the insurance needs of your non-profit organization by speaking to a qualified professional insurance agent that truly cares about saving your organization money while protecting you and your community organization from the financially devastating affects of having an underinsured or uninsured loss.
Michael Carlisle, Insurance Agent for Carlisle Insurance Agency in Jackson, Oh
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