Nonprofit Insurance: We Take it Seriously
At HD Insurance we love serving nonprofits. It may seem like an odd niche for an insurance agency to have but we couldn’t be happier to serve a sector that is so committed to helping those who need it most. Our motto is “Helping Those Who Help Others” for a reason, we believe that when we’re able to help nonprofits save money, close any coverage gaps and not have to worry about unpaid claims, in a way we’re helping the communities they serve as well.
The insurance we provide organizations is the kind of insurance that’s designed to protect the entity itself. Coverages like general liability, workers compensation, property, business auto, directors & officers, professional liability, improper sexual misconduct and a handful of others. We do believe that employee benefits coverages like group medical, dental and retirement plans are important but they’re not our area of expertise. However, we work with some amazing partners that are able to provide those benefits if they’re desired.
Nonprofits need all the same kinds of insurance that for-profit businesses need, and sometimes even more, but there are vast differences between the coverages provided to nonprofits and for-profits. Most nonprofits rely heavily on volunteers to accomplish their mission but if a volunteer gets hurt while working are they covered? If an employee of a company gets hurt, they have coverage through workers compensation, but volunteers do not. This is just one of many differences that an insurance broker who isn’t familiar or experienced in working with nonprofits might not catch or be aware of.
Not only do nonprofits have a hard time finding adequate and complete coverage but they often face difficulty when it comes to price. Most major insurance companies don’t offer coverage to nonprofits and the ones that do typically either rate them as if they’re businesses, which can lead to higher premiums, or they leave wide coverage gaps that could lead to unpaid claims down the road, which most organizations can’t afford to pay.
At HD Insurance we not only believe in providing the best service we possibly can but we also believe in providing options and searching for the best fit for our clients. We’ve been appointed by several insurance carriers that either solely insure or have separate divisions that are entirely devoted to nonprofits. This is a HUGE advantage because instead of working with companies that might see one or two nonprofits per year, we’re working with people at these companies that are solely and undividedly focused on helping nonprofits obtain insurance coverage that works for them.
Not only does this help us provide the most comprehensive coverage but it has allowed us to provide an average savings of 12% to nonprofits with existing coverage. Depending on the cost of insurance and the scope of an organization’s services, 12% can be a significant number. The savings we provide for Directors & Officers coverage alone is typically in the range of 25-30%. These savings don’t come from cutting corners, lowering coverage limits or leaving nonprofits at risk, it comes from our experience and the relationships we have with the right insurance companies.
We’re also able to help nonprofits buying insurance for the first time which is something we’re very proud of. While most insurance brokers will turn away small / new nonprofits because the potential earnings are small, we welcome them, we educate them and we’re there for them because we know that the right insurance packages are most important for an organization that’s trying to find its way. We don’t turn anyone away because we know that most nonprofits have the same mentality when it comes to helping people who need help.
We are always happy to help anyone, both nonprofit directors and for-profit business owners, with any insurance advice or guidance that they may need. We firmly believe that it never hurts to shop policies, not only can it lead to savings and reduced overhead costs but it can even lead to us identifying issues that leave organizations exposed. We recently provided quotes for a local nonprofit and while we were in the information gathering phase we noticed that their 12 locations were underinsured by over 4 million dollars!
Most insurance companies have clauses that penalize their insureds for underinsuring their buildings so if there had been a total loss, the penalty could have been astronomical. We were able to help them close that gap, providing them with an increased limit of coverage, and they only saw a 2% increase in their property premium, which was offset by the savings we provided on their general liability, auto and directors & officers coverages.
If you’d like to meet with us or chat on the phone, we’d be happy to help however we can. We’re not just committed to the success of HD Insurance but to the success of our clients. We’d love to hear from you and thank you for reading our blog!