"Non-profit organizations do very unique things," says Maureen Dyson, area executive vice president at Charity First Insurance Services, a program manager who provides services to non-profit organizations, religious and community services. "Non-profit organizations find a need in a community and adapt their activities around it – that need can be absolutely everything, so much of what we do as insurance specialists try to figure out how to put these organizations in a classification."
Take a soup kitchen as an example. There is no ISO classification for soup kitchens, so how can an insurer determine an appropriate premium? A method can be to compare the soup kitchen with a comparable business entity, for example a restaurant. With a restaurant classification, however, the rate is based on sales and therefore the more income the restaurant earns, the more premium it pays. As Dyson pointed out, the obvious problem is when comparing a soup kitchen with a restaurant that makes soup kitchens do not sell.
"We have to come up with classifications for unique organizations that do not fit into the normal ISO categories, and we need to find a standardized rate solution, for soup kitchens we charge X per meal, for example, because soup kitchens know how much food they need to prepare and how many meals they are going to distribute, "Dyson told Insurance Business. "That's just one example of a unique scenario that you can run into when insuring non-profit organizations, they have exclusive ratings and activities, so it's very important to work with an insurance company who understands the business and every account in the best possible classification can place. "
Nonprofits do not only have special classification requirements; they also have a number of fairly distinctive coverage needs. In recent years, non-profit organizations and social services have become much more aware of liability for working conditions and special coverings such as sexual abuse and war risk insurance. Those who did not have these special coverages in the past are now asking for them, and those with the coverings that are already present are asking higher and higher limits, says Dyson.
Charity First has specialized in non-profit organizations and social services for more than 30 years. The program manager offers all coverage areas, including general liability, domestic navy, crime, commercial vehicle, employee compensation and special coverings such as sexual abuse and molestation. The program is reactive to the needs of non-profit organizations. For example, after receiving many last-minute requests from customers for the coverage of live events for fundraisers and special events, the Charity First team created an automatic inclusion form for certain types of special events with no additional premium costs. The goal, according to Dyson, is to help real estate agents put together "the most comprehensive insurance policy possible" for their non-profit customers.
"One thing we have been focusing on in recent years is to interest our customers more in cyber-liability insurance," added Dyson. "Most non-profit organizations have an online presence and many of them will ask for donations they take online, so they certainly have some cyber positions, but it was a bit slow to hit, but we're starting to see more interest. I believe that cyber-liability insurance is a sensible purchase for non-profit organizations, and if a non-profit organization commits a violation, they not only lose that important data and information, but also lose the trust of all those with whom they have tried relationships. to enter and obtain financing, which would be a huge pitfall for non-profit organizations. "