As a non-profit organization, you need to manage your costs carefully. At the same time, you need to protect your organization, its officers and employees, members, and the community you serve. That’s why it is so important for you to periodically evaluate whether your insurance dollars are giving you the most bang for your buck. Here are five ways that you can lower your non-profit insurance costs.
1. Determine Your Insurance Needs
You want to understand not only the type of insurance you need, but also the amount of insurance protection required. The amount of insurance depends on the nature of your organization’s work, your size, and how many employees, officers, and volunteers work there. Most non-profits need general liability insurance, directors and officer’s coverage, property liability, and professional or product liability insurance. (See our earlier post “Are You All Set with Your Nonprofit’s Insurance Six Pack?”) for details on the various types of insurance. If you think that you may need additional or coverage or question whether your insurance is structured properly, consult a B&B representative for guidance.
2. Buy smarter in groups
If you are a small non-profit, you may be able to get benefits from joining an association or considering whether you can get insured as part of a pool. For example, the Small Business Health Options Program (SHOP) is a new program that simplifies the process of buying health insurance for employers with less than 50 employees by helping them buy as if they were larger companies.
3. Consider a higher deductible
The large deductible amounts on high-deductible may sound scary. But remember, those numbers are only applicable if you make a claim. Depending on the nature of your organizations, you may want to consider a higher deductible to retain lower out-of-pocket costs for insurance coverage.
4. Lower Your Claim Risk
Here’s an interesting concept. Rather than spend an excessive amount of money to carefully protect your business, spend time to identify the key risks of your business and create a risk management plan to lower risks. Lower risks lead to lower claims, which in turn, is likely to lead to lower insurance rates.
5. Review Your Policy Often
Your insurance policy should not be a “set it and forget it” affair. Your organization may shrink, grow, or change directions, and it is important to periodically re-evaluate your needs. Twice a year is a good interval for reviewing your policies. As your organization changes in the interim, you may find that there are coverages you no longer need and others that are missing.
Rollins is here to help you create a solid risk management strategy that covers employees, volunteers, committee members, and trustees. We help you select only the insurance you need at affordable prices. Speak to your Rollins representative for a review of your insurance portfolio.