Insurance is a significant cost for many charities and they will only see a return on their investment in the service they receive, how their claims are being handled or if a promise they have been given at the start is delivered.
According to the Charity Finance 2014 insurance survey* (pages 24 to 28), charities questioned if their insurance provider understood their sector. Everyone wants confidence that an intangible product, like insurance, will respond when you need it the most and to believe you have the support of your provider.
Getting the right deal
Despite the growth in on-line providers and offerings direct from insurance companies, most charities/NGOs entrust their insurance arrangements to a broker as they only have one point of contact. Value for money and price is a top priority yet 33-53% have seen their premiums increase in the past few years. As premiums increase, cost and the value for money will come under the microscope. A high degree of trust and confidence in your broker and in their ability to get the right deal for your organisation is essential. Therefore, a regular review of your insurance arrangements and suppliers is critical.
There is plenty of evidence to suggest that all is not rosy. Many charities/NGOs are looking for expert advice and understanding of the risks they are facing but only 9% meet with their insurance provider on regular basis. Working with a broker throughout the year will lead to a detailed knowledge of the way your charity operates and, in return, the broker will gain a better understanding of the risks. This broker will take into account your objectives, mission and strategy, the nature of your activities, applicable legislative and regulatory requirements, and identify lessons learned from past events to help create a robust insurance and risk management programme, which in return will help you avoid a crisis.
Covering a charity’s reputation
Increasing expectations around an organisation’s behaviour and the ever evolving world of digital and social media, combined with a myriad of stakeholders, are seen as key factors contributing to the vulnerability of a charity/NGO’s reputation. Reputational damage cover could help minimise the impact of an adverse event, however it is rarely considered as an option that can be bought by charities/NGOs. This could be due to a lack of understanding or awareness that you can protect your revenue against reputational damage.Lets not forget the promise
Helping you understand the policy small print and the responsiveness of an insurance provider become essential in the event of a claim. After all, this is one of the main reasons you buy insurance. If your broker doesn’t understand how your organisation operates it’s not surprising that only 35% were ‘very satisfied’ with claims procedures and 29% with claims payments. If an organisation doesn’t get the results they were promised at the beginning it’s easy to see why so many are dissatisfied with the outcome.
Insurance brokers should “watch your back” and help you protect your people, assets and reputation. Those experienced in your sector will spot potential issues, help you manage a crisis and rebuild your brand.
If you need an insurance provider who understands the risks you are facing, contact Hamish on firstname.lastname@example.org
Categories: Commercial Insurance