Home > Property & Casualty > Nonprofits benefit when partnering with an insurance broker

Nonprofits benefit when partnering with an insurance broker

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Nonprofit companies carry with them some complexities that are often overlooked. They have different structures and allowances than a traditional for profit company, and are therefore open to a variety of different risks. These risks can harm the business if not properly dealt with and mitigated before they arise.

Our team has always been specialized in helping companies with complex risks, by providing technical expertise. This past year, we have partnered with a larger brokerage with over 50 years of experience in the nonprofit area. The Gallagher Religious & Nonprofit Practice is now helping us support this sector with an unmatched industry expertise that can benefit our clients, along with the leverage a global presence.

It is impossible to properly assess a service’s value without knowing its costs. Therefore, be sure to review and understand the deal and what you are purchasing, as no two policies are the same. Do this alongside your broker, who should show due diligence and take the time to explain what you are receiving. There should be no need to advocate for operational and financial transparency because your broker should provide it without hesitation.

Nonprofits also want to stay away from bidding out risks. Making a solid broker selection allows for a single team to represent a nonprofit’s organizational interests and convey a consistent message in the marketplace. Bidding and have several broker market a nonprofit’s risks can fragment the marketplace and changes the conversation with underwriters to emphasize price over covering long-term risk costs. A non-profit company should do its research along with insisting and relying on its broker of choice. While the work and broker may be costly, it is something of worth to not be up against a claim that you cannot address. Be sure to work with a broker that is knowledgeable and has extensive expertise dealing with these and other various risk. In addition, your broker should have departments dedicated solely to working with your organization in addressing how these risks may affect you. The ability to offer various services in-house is also something to make note of. For example, Gallagher WGA has our own experienced claims department that is ready to work with clients and is well-versed in nonprofit claim scenarios such as cyber attacks on nonprofit donation pages and social media.

When choosing which broker to work with, avoid simply choosing the policy with the lowest cost. Rather, it is better to take the time to get to know who your organization will be working with. It should feel as if your broker is a partner and extension of your team and you should feel comfortable working alongside this person due to the breadth of issues and conversations they will be involved in. Due to this high level of involvement that your broker will be working with your organization, we think they should bring more to the table than just a fair price for their services.


About the Author
Ronni_RauschRonni Rausch is a Vice President at Gallagher WGA, and works with a variety of clients, from public entity/not for profit institutions to professional consulting and financial firms. Her goal is always to negotiate the broadest possible programs at the most competitive premiums available for her clients.

617.646.0322 | Ronni_Rausch@ajg.com | Connect with Ronni on LinkedIn
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