Essential Steps Non-Profit Leaders Should Take in the Pre-Renewal Process
Author, Sam Brown, Vice President, Human Services Group, Rancho Mesa Insurance Services, Inc.
Non-profit organizations and their leadership often rely heavily on their insurance agent’s experience and insight, gained from working with similar organizations, when considering insurance buying options and risk management throughout the year.
Rancho Mesa strongly recommends holding pre-renewal strategy meetings to discuss, at minimum, the following items.
Claims History by Line of Coverage
Non-profits have diverse insurance coverage often spanning everything from cyber liability to employment practices liability to volunteer accident policies. A thorough review of the last 12 months of claims activity will shed light on future pricing as well as claim trends. This conversation should lead the agent to ask what resources can best support leadership, but also broach the topic of new or infrequently used tools the non-profit should consider employing.
Operational Changes that Affect Risk
We consistently ask clients at the pre-renewal strategy meeting whether any operational or programmatic changes have taken place or will be considered in the next year. Non-profit leaders face a changing landscape pertaining to funding, employee retention, and insurance affordability. While funding for a new program or service is often pursued and shared with the agent, the tougher subject of terminating a longstanding program is becoming more common. Non-profit leaders may assume coverage is no longer needed, which is a great time to educate clients on how to insure future claims for incidents that took place in the past.
Coverage Review: Limits, Exclusions, Gaps
Non-profit leaders are excellent at their jobs, but they should not have to be excellent at insurance. A review of the limits of liability can help policyholders understand how coverage is layered and which layers add the most cost. Affordability is now a very real concern. This subject should also promote a discussion about limits and deductibles required by contract versus an anxious board member wanting the highest limits available. Neither approach is incorrect and both warrant discussion. This is also the best time to remind Non-profit leaders of the insurance they do not currently have in the insurance program.
Risk Management and Underwriting Narrative
Knowing risks, such as affordable housing, foster family agencies, and youth programs, are more difficult to place at affordable levels and helping an underwriter understand all programs and the exposure to risk, is now critical to a positive underwriting outcome. Sharing that a high risk program has been terminated can also help an insurance company accurately assess the risk.
The review of recent claims should allow the insured to share steps taken to prevent similar claims from happening. If the claims record is positive, this helps the underwriter understand the internal steps taken to improve their risk profile. The bottom line is applications do not tell the whole story. A well-developed narrative initiates more control over the process.
Renewal Strategy
The agent and non-profit should discuss whether the relationship with the current insurance company or companies is working well. If the goal is to maintain carrier longevity at a competitive premium, then discuss how to best achieve this result in a timeline that works for all parties. Also important, schedule a time to discuss the marketing process at least 30 days prior to the effective date. Perhaps the target premium is not achievable with the current carrier, but an alternative deductible strategy or competing carrier can hit the mark. It is best for everyone to feel informed and comfortable if circumstances change.
Working with a non-profit specialist agent to schedule a pre-renewal strategy meeting is step one in protecting the organization’s mission and future. The five items above should facilitate healthy discussion and help to answer questions and concerns.
For more information about your renewal process, please contact me at (619) 937-0175 or sbrown@ranchomesa.com.