Hallmarks of a Risk-Aware Nonprofit

Hallmark #9: Is Transparent with Insurance Partners

The Challenge

Savvy nonprofits do not hide information—or withhold it—from their insurance partners. Nonprofits that are transparent with their insurance partners know that an insurance agent or broker cannot be an effective advocate for the nonprofit if the advocate has no idea what is going on.

Nonprofits that are transparent with their insurance partners understand, ‘buyer beware.’ They know that if the nonprofit’s insurance partners are unaware that the programs or activities have been changed, it is no surprise that the nonprofit’s insurance package has no coverage for some of the losses that are likely to occur.

Nonprofits that are transparent with insurance partners also appreciate that withholding informing in the insurance context can be committing fraud. From the beginning stages, when filling out the application form, throughout the claims filing process, nonprofits that are transparent with insurance partners, ‘tell it like it is.’ [See Hallmark # 8.] They are also conscious that being slow to report a claim, or potential claim, can result in no coverage at all. They report losses in a timely manner (which means knowing how long they have to submit a claim) and they communicate with all affected by a claim immediately.

Nonprofits that are transparent with their insurance partners know that honesty is the best policy.

The Process

To demonstrate that your nonprofit is transparent with insurance partners, your nonprofit will:

  1. Schedule regular annual meetings to brief the nonprofit’s insurance professionals on the current programs and activities.
  2. Add your insurance broker to your organization’s newsletters and to circulation lists for other publications, such as annual reports.