An Overview: Charity Insurance Renewal
02/12/2024 Written by: AP Communications
Now is the time to start the process and get an independent review from a chartered charity specialist broker.
Why charities and businesses should start a review of their insurance early?
Starting a review of your insurance policy well before renewal offers significant advantages such as:
- It gives your broker ample time to fully understand your risks and assess any emerging threats. With this head start, we can provide detailed underwriting information promptly, ensuring greater transparency and boosting underwriters’ confidence to offer more competitive rates.
- Early reviews allow us to challenge claim reserves, which can result in lower premiums. This extra time also enables your broker to negotiate the best possible terms with insurers. Once an insurer indicates interest, our broking director can meet with them to negotiate rates, making it clear that this is a competitive process, giving each insurer a fair chance to win your business.
- It gives us time to build a strong relationship with you. Trust is key, and we aim to earn yours through positive experiences and successful outcomes.
Ultimately, an early review ensures better results—it’s just a matter of giving us the time we need to deliver the best solution for you.
What does an early insurance review timeline look like for charities and businesses?
If a charity’s insurance renewal is due in August, the broker should begin reviewing their policy in May. This three-month period allows enough time to thoroughly assess and follow the necessary steps.
In the first month, a conceptual review should be agreed upon, and all relevant insurance documents should be issued for examination.
During the second month, the broker will review the required coverage, current coverage, claim reserves, and the service level agreement. For a comprehensive approach, this process may take up to two months.
One month before the renewal, the broker will prepare and present a detailed report, including policy coverage, sums insured, outstanding claims, claims history, service offerings, and recommended pricing.
This structured timeline ensures the best outcomes for both charities and businesses.
Why should I review at all?
Incumbent brokers can sometimes become complacent, failing to regularly review your policy or explore better options. It’s the broker’s responsibility to assess your risks, negotiate pricing, and secure the best terms. If you renew without a review, you could be missing out on superior coverage.
Insurance markets change quickly, and your policy can become outdated—especially if you’ve had an incident, made alterations, or filed a claim. Legislative changes or market shifts may also affect your coverage without you realizing it. Underinsurance is a serious risk, whether due to outdated valuations, rising costs, or inflation. Only a thorough review can ensure your policy offers the protection you need.
As your charity or business grows, so should your insurance. AssuredPartners, as a multinational broker, can manage your evolving needs and tackle emerging risks. Switching brokers can bring a fresh perspective to uncover gaps or warranties that could leave your charity vulnerable. A confidential review provides the best protection, and with our chartered status and decades of experience, we are confident we can offer the right solution for you.
What are the common areas of an insurance policy which need updating?
Charities and nonprofit organisations have unique needs that require specialised insurance policies to ensure full coverage. The following areas have either been impacted by recent legislative changes or are where we often see gaps:
- Building and Contents: Inflation and rising material costs have increased the risk of underinsurance due to outdated valuations.
- Trustee Indemnity: Professional indemnity coverage is essential to protect trustees from liability in case of errors or omissions.
- Cyber Security and Cyber Crime Insurance: Charities face growing threats from cyberattacks, making it crucial to have a broker with expertise in this emerging risk.
- Terror Insurance: Legislative changes, such as the upcoming Martyn’s Law, may significantly impact your organisation’s obligations.
- Redundant Policies: Charities should only pay for necessary coverage, avoiding any redundant or irrelevant policies.
With a dedicated broker, we will review these areas along with your entire policy to create a tailored insurance portfolio that suits your charity’s specific needs.
Through AssuredPartners, businesses and charities receive the best possible service. In fact, this year we have introduced a Charity Commitment, aimed at strengthening our partnerships with current charity clients and extending our reach to new ones. If you are a charity looking to switch, or a current client awaiting renewal, we urge you to get in contact and start the review process with us today.
Laura Austin
Head of Charity
Birmingham Office
+44 (0) 121 423 6203
laura.austin@assuredpartners.co.uk
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