The process of finding insurance is overwhelming for many nonprofit directors. Most insurance agents don’t understand their unique needs and treat them like a business. Nonprofits are similar to business organizations but they deserved to be recognized for their unique services and operations. One of the biggest mistakes general insurance agents make is not thoroughly explaining the insurance coverages and benefits. Lack of insight or knowledge on what insurance policies offer and protect nonprofit organizations from leaves individuals thinking it is a worthless investment.
Worth the investment
Insurance is worth the investment even though you don’t see an instant return. Lawsuits are on the rise across the United States and insurance is the only protection that helps nonprofits keep their doors open when they arise. If your nonprofit was sued today for $250,000, what would you do? Many nonprofits are forced to close their doors because they don’t have the means to pay significant claims like these. Liability insurance is one of the many available protection solutions for nonprofits and offers significant benefits in the event of a lawsuit.
How does it work?
Nonprofit liability insurance is purchased initially for a one-year term and then renewed on the expiration date the following year. It is vital you report any incident that arises that may result in a claim. It is even more important that you notify the company if you receive any correspondence from an attorney. Once you file the claim, they assign you with a claim number, adjuster, and lawyer to communicate with.
Where to find insurance
The key to purchasing insurance suited for your nonprofit is finding an agent that fully understands nonprofit organizations. Contact your existing agent to see if they utilize companies that offer specialty nonprofit insurance policies. If they don’t, ask them if they are familiar with an agency that does. You can also search online to find a nonprofit insurance agency that works exclusively with nonprofits like yours.
Nonprofit liability insurance holds significant value for your organization in the event of a lawsuit. Don’t avoid because it seems overwhelming. Find an agent that understands you and your services to make the process more enjoyable and easy to understand.