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Executive Director
During the most recent Risk Summit, we hosted a lively session titled Insurance Industry Insights. Featured on the dais were senior leaders from insurance carriers that specialize in insuring nonprofit organizations. We explored trends in the insurance sector and panelists also answered questions from RISK eNews readers and Affiliate Members. The discussion quickly gravitated toward issues related to the role of the “producer” (the insurance agent or broker), and how to best represent an organization in the application for coverage. Below we share some of the questions and intriguing, insightful answers from our panel.
Q: What can nonprofit risk leaders do to best present their organizations to an insurer? What are the common mistakes you see nonprofit policyholders make, both when they purchase coverage, and when they want to leverage their coverage?
A: To receive the best possible terms and pricing, present the organization in complete detail. Resolve to be transparent about your losses and incidents as well as the scope of your risk management program. Transparency is key to creating and sustaining a trusting relationship with your insurance industry partners. Keep in mind: failing to acknowledge claims on your renewal applications will undermine trust. Underwriters will check with the claims department to verify the information you’ve provided.
Q: What recommendation would you offer to nonprofit leaders who want to be more effective risk leaders?
A: Engage your broker as a mission partner. Expect that she wants to provide services that support your mission. Treat your broker as you would a trusted consultant. Tell the story of your nonprofit with as much enthusiasm and detail as you would a cherished stakeholder or prospective funder.
Q: What is the biggest change in the industry you’ve seen in your career?
A: The caseload/workload of underwriters has doubled.
Q: How important are agents to the process? Why?
A: Agents are advocates for their nonprofit clients. They are familiar with the risk tools and resources offered by a nonprofit’s insurance carriers. They can connect you to those resources.
Q: What qualities should a nonprofit be looking for in an agent or broker?
A: Someone who can connect with the mission of the organization, someone who understands your operations.
I’m grateful to the following industry leaders who joined me for a lively discussion at the recent NRMC Risk Summit: John Doyle (Philadelphia), Penny Parisoff (GuideOne Insurance), Cheryl Tamasitis (Nationwide), Michael Schraer (Chubb), and Mike Liguzinski (Great American Insurance Group).
Melanie Lockwood Herman is Executive Director of the Nonprofit Risk Management Center. She invites your questions about any of the topics in this article, or questions about Affiliate Membership or NRMC consulting services at Melanie@nonprofitrisk.org or 703.777.3504.
“First let me congratulate you on a conference well done. I had a great time at the Nonprofit Employee Benefits Conference and walked away with some valuable tools and questions that we’ll need to be addressing in both the short and long term. Thanks to you and your staff for all you do to provide us with quality resources in support of our missions.”
“BBYO’s engagement of NRMC to conduct a risk assessment was one of the most valuable processes undertaken over the past five years. Numerous programmatic and procedural changes were recommended and have since been implemented. Additionally, dozens (literally) of insurance coverage gaps were identified that would never have been without the work of NRMC. This assessment led to a broker bidding process that resulted in BBYO’s selection of a new broker that we have been extremely satisfied with. I unconditionally recommend the Center for their consultative services.
“Melanie Herman has provided expert, insightful, timely and well resourced information to our Executive Team and Board of Directors. Our corporation recently experienced massive growth through merger and the Board has been working to better integrate their expanded set of roles and responsibilities. Melanie presented at our Annual Board of Director’s Retreat and captured the interest of our Board members. As a result of her excellent presentation the Board has engaged in focused review which is having immediate effects on governance.”
“The Nonprofit Risk Management Center has been an outstanding partner for us. They are attentive to our needs, and work hard to successfully meet our requests for information. Being an Affiliate member gave us access to so many time- and money-saving resources that it easily paid for itself! Nonprofit Risk Management Center is truly a valued partner of The Community Foundation of Elkhart County and we are continuously able to optimize staff time with the support given by their team.”
“The board and staff of the Prince George’s Child Resource Center are extremely pleased with the results of the risk assessment conducted by the Nonprofit Risk Management Center. A thorough scan revealed that while we are a well run organization, we had risks that we never imagined. We are grateful to know that we have now minimized our organizational risks and we recommend the Center to other nonprofits.”
Great American Insurance Group’s Specialty Human Services is committed to protecting those who improve your communities. The NRMC team has committed to delivering dynamic risk management solutions tailored to nonprofit organizations. These organizations have many and varied risk issues, hence the need for specialized coverage and expert knowledge for their protection. We’ve had Melanie speak on several occasions to employees and our agents. She is always on point and delivers such great value. Thank you for the terrific partnership and allowing our nonprofits to focus on their mission!