From the Front Lines: Nonprofit Insurance
Ben Guttman
Insurance Broker
North Central Insurance Agency
Parkton, Maryland
How did you get started at your agency?
I began my career in insurance after a friend recommended the industry to me. I initially worked for a group of Allstate agencies before switching to the independent side. I was recruited by my current agency seven years ago to help grow its social media presence and commercial book.
Why nonprofit insurance?
It chose me. I had been focusing on habitational insurance but got into the nonprofit industry through a referral from a client of mine when a nonprofit needed some assistance during the pandemic. Since then, I have used my experience as a board member of other organizations to help educate clients about the industry.
Changes and challenges in the nonprofit market?
It’s a challenge to instill the mindset that just because you’re trying to help doesn’t mean you aren’t vulnerable to a lawsuit. Many people don’t think about that, but recent cases have made many directors more aware of the risk. Coverage requirements are also escalating. This can have a negative impact on the bottom line of smaller nonprofits. The impact of technology and cyber insurance is a major change, too, especially for nonprofits that have so much sensitive data on vulnerable populations.
Future trends?
There will be a shift in the minimum coverage requirements for nonprofit organizations. Further, there will be much more of a focus on cyber, as well as other professional liability lines, such as directors & officers liability coverage. Additionally, smaller nonprofits may have a harder time keeping up than larger organizations due to requirements. I hope this will drive some carriers to create a product line aimed at startup nonprofits because many communities depend on their services.
Advice for a fellow agent?
For many nonprofits, insurance is an afterthought. Most directors are focused on their work and not the minutia of requirements. However, it is crucial to obtain a contract. Organizations need to be reminded that litigious people do not care that the nonprofit is doing good for the community. It needs protection. I call it “helping the helpers.” Remind them of this and educate them on how it will further their good work.
Olivia Overman is IA content editor.
