May 14, 2024
In part one of our series, Nonprofit Insurance Essentials, we explored the crucial policies that will keep nonprofits protected. Part two is our essential guide to reading your policy. In this third installment, we're exploring how to keep your policies working for you.
Congratulations, you’re up and running! Time to keep your coverage up to date and responsive with these practical best practices that will have you navigating potential risks with ease:
Don’t Skip Your Annual Insurance Audit. Make it a routine to review your insurance coverage annually with your broker. You’ll ensure your coverage keeps pace with the evolving needs and risks of your organization. Also, consider obtaining competitive bids regularly through your broker to ensure cost-effectiveness and to keep coverage aligned with market standards.
Give Your Staff Policy Knowledge. Your staff are your best allies in mitigating risk; make sure they understand the fundamentals of your coverage. Training staff on the how's and when's of prompt and accurate reporting, so when something happens, you’ll have an excellent handle on potential liabilities.
Think Before You File. Familiarize yourself with the details of your policies, especially deductibles or retention amounts. In some cases, handling minor issues without filing a claim may be more economical in the long term. Balancing the immediate costs against potential future premium increases is an essential skill for financial prudence.
Expect the Unexpected. Rates will increase over time, so anticipate annual increases in insurance premiums in your budget planning. And because there’s always something, maintain a reserve fund for deductibles and you’ll ensure that unexpected incidents do not destabilize your organization's financial health. Your CFO and auditor will have percentage guidelines to consider as you create this budget line item.
Master the art of insurance management and you’ll always have eyes wide open and arm your nonprofit to confidently navigate potential risks. Your proactive and informed approach doesn't just protect, it paves the way for your organization's sustainable growth and success.
Stay tuned for the fourth and final installment of Nonprofit Insurance Essentials!
