Tip of the Month - June 2003

EVALUATING YOUR INSURANCE PROFESSIONAL

No news is good news; except when people are griping behind your back. Many clients would rather complain about an agent or broker’s perceived poor performance, than speak with the person about where he or she is falling short of expectations. Compare what you consider important to the seven items that other nonprofit’s value in their agent or broker, then evaluate your current insurance professional. 

1. Responsiveness

2.  Timeliness

3. Credibility

4. Commitment

5. Claims handling

6. Accuracy

7. Results

An objective performance review begins with reviewing your agreement with the agent or broker. Then asking staff, the risk management committee members, and board members the following questions:

Broker Performance Review

In relation to the agreed to services to be provided by Broker _________________

to Nonprofit ________________________________________: 

                                                                                                                                 Yes   No

Did the provider fulfill the commitments detailed in the agreement?

discussed at the outset of the relationship?

If No:

• Was the nonprofit in any way responsible for the broker’s failure to deliver?         

• If the failure to deliver was totally the broker’s, has he/she proposed a plan to fix the situation?

•  Have any steps been taken to ensure that the difficulty will not arise in the future?

• Are you confident that the broker will be able to live up to his or her commitments in the year ahead?

• Are there any areas where the broker’s performance has exceeded expectations (creativity in finding coverage, responsiveness to your needs, understanding of your sector of the nonprofit market)?  

• Are there areas where the broker’s performance fell short of your expectations (professionalism, access to markets, meeting deadlines)?        

 If yes

• Are the broker’s shortcomings in areas that you valued as essential or critical reasons for selecting the person as your broker?              

• Have you kept the broker informed of your disappointment and given the broker time to make adjustments in his/her performance?  

You can learn more about choosing and working with an insurance professional in Coverage, Claims and Consequences, An Insurance Handbook for Nonprofits, published by the Nonprofit Risk Management Center, www.nonprofitrisk.org.

View Past Tips of the Month

May 2004 - One Million Minnesotans Can See Your Form 990
April 2004 - Avoid Unexpected Cost of Directors, Officers, and Organizational Liability
March 2004 - Strategies for Reducing Operating Costs
February 2004 - What Can Nonprofits Due During an Election Cycle
January 2004 - Celebrate Your Nonprofit
November 2003 -Get Your Board on Board
October 2003- Take a Walk-About for Safety
September 2003- Exit Interviews-Learn from those who Leave
August 2003 - Participant Waivers: The Good the Bad and the Ugly
July 2003 - Practical Tips for Reference Checking
June 2003 - Evaluating Your Insurance Professional 
May 2003 - Supervising Volunteers
April 2003 - Protect Your Assets with Sound Internal Controls
March 2003 - Teaching Computer Users to Surf Safely
February 2003 - Involve Clients in Protecting Their Own Safety
January 2003- Managing the Risk of Board Discontent

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