If you are the leader of a nonprofit organization, you already know too well the wide range of challenges you face this year. “How can we continue to deliver on our commitment to our mission? How can we adhere to safety protocols for our employees and volunteers amid the COVID 19 environment? How can we keep everyone involved safe? How can we keep donor retention high, and operational costs low?”
One of those costs, that of insurance, is expected to change significantly this year.
According to the Wall Street Journal, insurance companies have raised prices aggressively following several years of large catastrophic losses and continued low interest rates, which have weighed on their investment returns. They also face mounting pressures to raise insurance rates to offset the reductions they offered to stay competitive in the years in which claims were low. According to the article, “The Children’s Center, a nonprofit in San Antonio… received a renewal quote of $750,000” or a 326% increase over its prior year costs. Factoring in new pandemic claims does not help, with industry estimates of COVID-related insurance claims exceeding $80 billion according to the Daily Business Review.
The trend in premium increases is accelerating, and is likely to broadly affect businesses and organizations regardless of individual performance.
One way that nonprofit entities have found insurance premium relief is by working with a specialist insurance advisor that understands their business and the unique challenges facing nonprofit organizations. Such an advisor can help you manage your overall risk exposure and cost of insurance by performing a thorough review, but also may have access to nonprofit-specific products that can be cheaper while in many cases offering better coverage.
Why you should consider working with a nonprofit-focused insurance advisor:
Carrying appropriate insurance coverage for these risks and exposures while keeping the price within your budget is presenting a greater challenge in 2020 – a proper evaluation of your organization’s risks within this new landscape is highly recommended, and could reduce your organization’s insurance costs substantially.
It is important that a nonprofit engage a trusted insurance advisor for a review and explanation of the coverage it needs. According to riskandinsurance.com, “41% of nonprofits cited confusing policies as a reason they would not select certain coverage.”
Reese Yeatman Insurance has had great success helping our clients save money while maintaining effective coverage, in some cases reducing premiums by as much as 40%. As you continue to work your way through 2020 and an increasingly uncertain environment, make sure your organization obtains a good “reset” for the road ahead by consulting with a nonprofit insurance expert.
Contact Reese Yeatman Insurance today to discuss your nonprofit’s insurance program.