How Often Do Nonprofits Need to Update Their Policies?

How Often Do Nonprofits Need to Update Their Policies?Why and when to review your nonprofit’s insurance policies.

Nonprofit organizations face unique challenges on a daily basis. Along with the task of making the community a better place, you must ensure that operations are handled correctly and efficiently. As a nonprofit owner, you may quickly find that there are not enough hours in the day to complete everything on your to-do list. One important task that you must not push to the bottom of the list is reviewing your nonprofit insurance. Insurance is there to protect your nonprofit, but it can only do so if it stays up to date.

Why should I review nonprofit insurance?

Below are just a couple of important reasons why you should review your nonprofit insurance regularly:

  • Time brings change. You first take out insurance policies based on your existing operations and goals. Over time, those services and goals change. Your organization begins to grow, and with it, new risks emerge. It’s important to review the procedures to identify operational changes, updates, and missing items.
  • Insurance means defense. In the rare occasion when lawsuits do happen, documentation is the key to your defense. Having insurance policies in place gives you power in the courtroom and defends your organization. Reviewing your policies shows that you actively engage and make changes to your policies when necessary to keep up with laws and operational changes.

When to update insurance policies?

It’s important to look at your nonprofit’s risks, exposures, services, and insurance policies when your nonprofit grows, makes changes to the workforce, or changes operations. If your nonprofit has made any substantial changes like the following, it’s vital you review your insurance:

  • You have new premises
  • You’ve purchased new equipment
  • You’ve made improvements to the building
  • You’ve increased stock
  • You’ve secured larger donations
  • There have been changes to staffing/volunteers

As a general rule of thumb, review your nonprofit’s insurance policies twice a year and talk to your insurer about ways to protect your organization.

It pays to review your insurance often. Are you ready to secure the right coverage for your needs? Contact the experts at Colorado Nonprofit Insurance Agency, part of HUB International in Denver, Colorado at 303-894-0298.