“In any negotiated agreement each party should be liable for the things over which they have control."
In an earlier blog, we explained the difference between an insurance broker and an insurance company. As discussed in that article, the broker is someone who specializes in insurance and risk management, whose role is to help the nonprofit put together an insurance program of one or more policies to mitigate the potential for financial loss from a variety of risks. Essentially, they act as a consultant to the nonprofit to understand the risks associated with the nonprofit’s mission and the types of insurance needed to cover those risks. Part of that discussion would include if there are risks that cannot be insured against.
When most Americans think of this time of year, they imagine hot cocoa, candy canes, and reindeer. However, when most nonprofit leaders think of this time of year, their minds go to holiday events and fundraisers, the spirit of giving, and, more likely than not, how to safely provide alcohol at said events. Whether your nonprofit is serving alcohol to employees and guests, or selling it in order to raise money, here are some questions to consider so that your nonprofit doesn’t find itself faced with an alcohol-related lawsuit.
Many commercial insurance companies do not offer coverage to nonprofits because of the special risks this sector presents, such as the use of volunteers, the frequent interactions with vulnerable populations, the small size of many nonprofits, the unusual auto exposures, and the misperception that nonprofits are not well-managed. This article does not address those issues. This article discusses how to put your best foot forward as a nonprofit to an insurance carrier that is already inclined to offer insurance to a nonprofit. We also recommend that before reading this article, you take a look at our past blog The Difference Between an Insurance Carrier and an Insurance Broker. This will help assure that you have a good foundation of knowledge for understanding the information below.
For those of us who work in or around insurance, the difference between an insurance broker and an insurance carrier is quite clear. However, for many nonprofits tasked with finding and maintaining insurance coverage, the process can seem quite daunting.
Let’s face it — you may not have even been aware until this exact moment that there’s a difference between an insurance broker and a carrier.
If this rings true and you need some assistance making sense of all of this information, look no further! Below is an explanation of both a broker and a carrier, as well as the relationship between the two in regards to your nonprofit’s insurance coverage.