As the director for a nonprofit youth at risk, you understand that specialized nonprofit insurance is a vital step in protecting your organization’s assets and reputation. Several youth at risk organizations across the country have received lawsuit papers. Those that have the right insurance in place are able to continue providing their services to their communities with little or no impact on them financially.
However, those that did not have the right insurance, closed their doors because the defense and settlement costs were so high. How can you be certain that you have the right insurance in place?
Here are three things you need to know and understand about insuring your youth at risk organization:
1. Coverage beats price. There are many cookie-cutter insurance policies available to nonprofits. These types of policies do not offer specialized coverage for youth at risk organizations and exclude coverages that are vital to you like sexual abuse and misconduct. Determine what coverage is essential by completing these tasks:
a.Review the types of services you offer participants and the community.
b. Write down everything that could go wrong (i.e. injury, abuse allegations, etc.)
c.Provide this list to your insurance agent as the risks you need protected against.
Taking the time to properly identify your organizational needs guides to you to choose the proper insurance that saves you money when most crucial, at the time of a lawsuit. Shopping for insurance based on price alone leads to you purchase a policy that will not protect the assets of your Youth At Risk nonprofit during a lawsuit.
2.Choose the right agent. Insurance agents are required by law in all states to obtain a license to sell.; When you call your agency, make sure the
representative on the phone is licensed. In addition to a license, verify they understand youth at risk organizations like yours. Ask them these questions ton be certain you are working with the right representative:
a. Have they worked with youth at risk organizations before?
b. Do they work with insurance companies that specialize in nonprofits?
c. Do their insurance policies exclude any of the vital coverage needs identified in #1?
d. What types of insurance do they specialize in providing? Spend time researching insurance agents that specialize in nonprofit youth at risk insurance. They will better understand your needs and are able to offer insurance solutions that benefit your organization.
3.Insurance is confusing. This comes as no surprise since you are
researching things you need to know about insuring your Youth at Riskorgani zation. Use these tips to help make the insurance process easier:
a. Read the quote and the fine print in its entirety. This is the only way you can identify binding requirements, coverages, and exclusions on the policy.
b.Ask your agent questions to help you understand. (Helpful hint: if your agent doesn’t answer your questions, you may want to choose a different agent) Before purchasing an insurance policy for your youth at risk organization, make sure you fully understand the details.
Insurance is one of the most important steps in running a Youth at Risk Organization. Take the time to research coverages, identify your risks, research insurance agents and ask questions during the insurance shopping process. You will set your nonprofit youth at risk organization to be properly protected if you follow these steps.