After the last 2 years, not-for-profits are still re-evaluating how things are done, adapting to flexible working and looking for sustainable and efficient ways to operate. These changes have influenced decision-makers regarding insurance, and here are few things we can learn.
Thinking of cutting costs
Some charities are reviewing costs and seeking leaner insurance programmes that provide the essential cover they need; without some of the optional cover they might have opted to purchase before the pandemic.
However, charities should be careful when considering dropping covers to cut costs as there could be implications.
For example, trustee and professional indemnity cover work on a ‘claims made’ basis – a claim is made on the policy currently in force (not on the policy in force when the incident happened).
Removing this cover removes protection for all the previous years covered by the policy.
Having a remote workforce means charities will want to review their insurance for office equipment, possibly widening the cover to include risks such as theft of laptops from employees’ homes.
Similarly, if their insurance covers the running of the events and equipment hire, they will want to review whether the event will proceed and whether cover is required.
Charity operations are changing; for example, many smaller local charities have expanded their work in the community or shifted their operations to a new focus.
These changes in risk should be reflected with adequate insurance programmes.
Sharing changes with your insurer
Essential information which determines the cost of a policy should be shared with insurers as soon as possible. This includes projected income, wage roll figures, occupancy of buildings and any change in activities.
A charity specialist broker can review and assess the suitability of your insurance and whether the insurer can provide any flexibility.