Article Archives >> Risk and Reward >> March/April/May 2003
Preview of Article:
Getting to Know You: Learning to Read Your Insurance Policies
An insurance policy is a contract that defines the obligations of the two parties involved, the organization (insured) and the insurance company (insurer). With a little insight into the mysteries of insurance contracts, every nonprofit manager can make sense of insurance policies. Also, your insurance agent or broker is a valuable resource as you work to understand your policies.
Taking the time to understand your nonprofit's policies is well worth the effort. The need to take time to read and understand your policies is never greater than during the "hard market" cycle. During hard market conditions you may be required to forgo desirable coverage features in order to be able to afford the premium. You will need to know the policy to understand the implications of removing certain coverages. Besides outlining your coverage, your policies assign certain responsibilities to the insured. If the insured (your nonprofit) does not meet its obligations, the policy may not be there for you when you need it.
Article Archives >> Risk and Reward >> March/April/May 2003
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