"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," says independent agent Ben Guttman. "Many people don't think about that, but recent cases have made many directors more aware of the risk."
Ben Guttman
Insurance Broker
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.
