3 Things That Could Blow Up Your Insurance Coverage

3 Things That Could Blow Up Your Insurance CoverageSituations where your insurer could deny your nonprofit claim.

Under most Errors and Omissions, Directors and Officers, and other liability policies, there are certain items that you must comply with for the policy to respond to a claim. Unfortunately, many nonprofit owners do not take the time to read through their policy terms, meaning that they make mistakes when filing a claim. A common issues that claims are not reported as soon as they happen. All policies require that the insurer is notified in a certain way, in a specified time frame. Check out the top three reasons why claims are not reported on time.

  • “It wouldn’t be covered anyway”

It’s always best to let the insurance company decide. It’s better to be safe than sorry. When an accident or incident occurs, make sure to call your insurer and talk through your coverage so that you can know if you do have protection in place or not.

  • “We were going to work out the problem”

In short, this means that you knew about the potential claim. You can’t wait for a situation to get worse before acting on it, hoping the insurer will pick up the pieces. An insurer should know about a claim straight away in order for it to be resolved as quickly as possible.

  • “I didn’t have a lawsuit”

Your nonprofit doesn’t have to be sued in order to receive assistance from your policy. Review your policy’s definition of a claim – as it’s not always a lawsuit.

Too often nonprofits let potential claims linger, hoping they will be resolved. Make sure to make use of your insurance when you need it the most.

Are you looking for more ways to protect your nonprofit? Contact the experts at Colorado Nonprofit Insurance Agency, part of HUB International in Denver, Colorado at 303-894-0298.