When reading your nonprofit’s insurance policy, it can almost seem like you are reading a foreign language, but it is important to take the steps to understand your insurance policy because your policy does not only provide insurance protection, but it also assigns certain responsibilities to the nonprofit organization.
There are four parts the every insurance policy, declarations, insuring agreements, exclusions, and conditions. The declarations, also known as the “dec” page, is usually the front of the policy that summarized important information about the policy and schedules. Insuring agreements details what the insurance company agreed to pay for or to provide in exchange for the premium that you, the insured, will pay. Exclusions are included with your policy that state provisions that eliminate coverage for specified exposures. Conditions within an insurance policy qualify the various promises made by the insurance company. When reviewing your nonprofits insurance policy make sure that you check for accuracy, review the rating classifications and other schedules, and read the policy carefully and fully understand all four parts. By taking the time to understand your policy, it can save your nonprofit money and put your mind at ease.