TARGET NONPROFITS TO GROW YOUR AGENCY

GOOD CAUSES AREGOOD FOR YOUR BOOK

An Introduction to the Nonprofit Sector ......................................................................................3

Best Practices for Writing Nonprofit Insurance ...........................................................................4

A Note on Directors & Officers Coverage ...................................................................................7

Nonprofit Organizations to Target for Growth .............................................................................9

Easy Nonprofit Risks ..................................................................................................................13

Pretty Easy Nonprofit Risks .......................................................................................................13

Moderate Nonprofit Risks ..........................................................................................................15

Fussy Nonprofit Risks ................................................................................................................18

Very Hard Nonprofit Risks ..........................................................................................................20

Ideas for Targeting Nonprofits ...................................................................................................21

Final Thoughts on Helping Others Fight the Good Fight ..........................................................23

TABLE OF CONTENTS

3© 2017 Insurance Noodle, a BIN Insurance Holding Agency

Let’s start by dispelling a few of the persistent myths about nonprofits, such as…

• Nonprofits have no money. Nonprofits generally have their sights set on loftier goals than the bottom line, but that doesn’t mean they don’t care about making money. In fact, NPOs have to generate revenue or they wouldn’t be able to serve their community. What sets them apart from for-profits is that the entirety of their revenue must go toward running the business – that includes paying for salaries, the organization's activities, and other expenses.

• Nonprofits have no paid staff. On the contrary, the most recent data from the Bureau of Labor Statistics shows that

nonprofits employ 11.4 million people. That translates into a little over 10 percent of the private employment in the United States.

• Nonprofits are large and have lots of resources. Big-name nonprofits dominate the sphere, but the majority of NPOs are small operations. Take, for example, public charities. According to the Urban Institute, 66.4 percent of the nonprofits that offer free or low-cost services, like a soup kitchen or a learning center, tally annual revenue of less than $500,000.

Hopefully, this information demonstrates the potential growth the nonprofit sector represents for your insurance agency. Still skeptical?

AN INTRODUCTION TO THE NONPROFIT SECTOR

An Introduction to the Nonprofit Sector

© 2017 Insurance Noodle, a BIN Insurance Holding Agency 4

Then it might help to know that the IRS reported an 8.6 percent increase in the number of nonprofit organizations between 2002 and 2012.

Nonprofits can be a great market for the insurance agent who learns about the industry.

That’s where this guide comes in. It can help you grow your agency by showing you…

• The important questions to ask when working with an NPO client.

• The kinds of organizations that provide the best ROI.

• Some ideas for targeting nonprofit organizations.

Knowing the industry lets you place risks with confidence, but so does joining Inureon Solutions. When you combine this guide with our insurance technology and universal application, you can get accurate quotes to your NPO clients in minutes. Keep reading to learn more.

CAN I HAVE A CALLOUT HERE?!?!?!

US Nonprofits employ 11.4 million people.

An Introduction to the Nonprofit Sector

BEST PRACTICES FOR WRITING NONPROFIT INSURANCE

6© 2017 Insurance Noodle, a BIN Insurance Holding Agency

The nonprofit sector is surprisingly diverse. In fact, the IRS lists 29 subcategories under its 501(c) category, including public charities, religious institutions, fraternal organizations, and chambers of commerce, to name just a few.

That diversity means writing insurance for a nonprofit isn’t a one-size-fits-all proposition. On the contrary, each NPO has unique risks based on the services it provides and the events or activities it sponsors. You must carefully examine a client’s programs to ensure you cover its potential liabilities.

Assessing Day-to-Day NPO Risk

“Helping the community” or “serving others” might be appropriate descriptions for an NPO’s mission statement, but neither says much about the organization’s exposures. Therefore, the first step in writing nonprofit insurance policies is to nail down your client’s day-to-day operations.

Best Practices for Writing Nonprofit Insurance

BEST PRACTICES FOR WRITING NONPROFIT INSURANCE

© 2017 Insurance Noodle, a BIN Insurance Holding Agency 7

• Do your workers receive appropriate training? Consider the potential injuries a volunteer may sustain when working for, say, an animal shelter. Making sure employees learn the best practices for the particular industry can minimize occupational hazards.

• Do you perform background checks? Depending on the state and the type of program, this may be a requirement for your client.

Best Practices for Writing Nonprofit Insurance

Areas to investigate might include…

• Their services. An afterschool program for at-risk teens has different risks than, say, an organization that advocates for the business community. The following questions can give you some insight into your client's practices…

• What community do you serve? Certain groups, like children or teens, may expose your client to more risk.

• Do community members visit your site? More people in your client’s space may indicate a need for more General Liability Insurance.

• Do you provide counseling? Offering expert advice of any kind – professional, medical, or psychological – increases a nonprofit's professional liability exposures.

• Do you serve food? Whether it’s snacks at a daycare or dinner for the homeless, offering food is an important exposure to consider for many nonprofits.

• Do you host athletic events? Few carriers have an appetite for recreational leagues, sporting events, or athletic programs.

• Their people. Workers are another exposure that may require coverage. You may want to ask your client…

• Do you use volunteers? Most states require employers to carry Workers' Compensation Insurance for their employees, but some require it for certain kinds of volunteers, too. Check the laws in your client's state to help them comply.

Consider Commercial Auto policies for nonprofits whose workers drive.

© 2017 Insurance Noodle, a BIN Insurance Holding Agency 8

• Do employees or volunteers ever drive? Nonprofit workers might drive their own cars while delivering meals. Any driving for the nonprofit indicates a potential need for Commercial Auto / Hired & Non-Owned Auto Insurance.

• Their property. Just like their for-profit counterparts, nonprofit organizations have property that needs protection. You might want to ask your client…

• Do you have specialized equipment? Some nonprofits, like health clinics or special education centers, may depend on expensive equipment.

• Does your property ever leave your site? An organization’s work may take it out into the community, so ask your client if they travel with or store their equipment on another’s premises. Doing so may indicate a need for specialized Property Insurance, such as Inland Marine Insurance or off-site coverage.

• Do you rent your space? Commercial renters are sometimes required to care for more areas than they realize. Review your client’s lease to see if they are responsible for walkways, storage areas, or parking lots.

This is not an exhaustive list, but hopefully it opens your eyes to some of the exposures your NPO client may face. Do a thorough risk assessment to ensure you find the appropriate insurance for your nonprofit client.

Best Practices for Writing Nonprofit Insurance

© 2017 Insurance Noodle, a BIN Insurance Holding Agency 9

Assessing Special Event Risk for Nonprofits

Nonprofits may receive funding from government grants, membership fees, and investments, but most still need fundraisers to make ends meet. Common fundraisers include…

• Award ceremonies.

• Auctions.

• Performances.

• 5K fun runs.

• Carnivals.

Others might sponsor events as part of their mission. For example, a chamber of commerce might host a lunch with a guest speaker or a trade group might manage a weekend conference. Start assessing your NPO client’s risk in this arena with questions like…

• Do you host events that attract spectators? For example, they might run a music festival or host a speaker that draws a crowd.

• Do you host events that require active participants? Examples might include a three-on-three basketball tournament or a golf outing.

• Do you provide alcohol at any of your events? Organizers who serve alcohol may require Liquor Liability Insurance.

When activities aren’t part of a nonprofit’s daily operations, they are often beyond the scope of its General Liability coverage. NPOs may need Special Event Insurance to adequately cover the risks that come with extra people, activities, and liquor.

Best Practices for Writing Nonprofit Insurance

A NOTE ON DIRECTORS & OFFICERS COVERAGE

11© 2017 Insurance Noodle, a BIN Insurance Holding Agency

A NOTE ON DIRECTORS & OFFICERS COVERAGE

A nonprofit’s board of directors takes on many of the same responsibilities as their corporate counterparts. Directors ensure the organization is…

• Operating in accordance with its mission.

• Protecting its assets.

• Maintaining its legal and ethical obligations.

• Using its funds wisely.

• Employing skilled executives.

Just like for-profit board members, nonprofit directors and officers are often targets because of their participation in these tasks. Some people hold NPO boards to even higher standards because their work is philanthropic.

That means a nonprofit's board members take on a considerable amount of personal liability when they join the organization, and not many people are willing to jeopardize their personal finances over a job. In short, Directors and Officers Insurance is essential coverage for NPOs that want to attract and retain their talent by offering financial protection from these hazards.

A Note on Directors & Officers Coverage

© 2017 Insurance Noodle, a BIN Insurance Holding Agency 12

What Is Directors & Officers Insurance?

A Directors and Officers policy protects a nonprofit's board members when they are sued over issues related to their position with the organization. For example, D&O Insurance usually covers claims over:

• Employment practices. Paid employees and volunteers can sue a nonprofit over discrimination, sexual harassment, wrongful termination, and other situations that can occur in the employer-employee relationship.

• Negligence. Donors, beneficiaries, or even other officers can claim a board member failed in their responsibilities to the organization.

• Misuse of funds. Claimants may allege a nonprofit made poor investments, misallocated grants, or improperly distributed charitable funds.

If you’ve written commercial policies before, you’re probably asking yourself, “E&O and EPL Insurance cover some of that risk, right?” That’s a good question considering the first two items on the list seem directly related to those products.

The key distinction is that D&O focuses on the activities that fall within the scope of a board member’s duties. Let’s take a look at the couple of examples to clarify why the different policies are necessary.

NPO directors and officers can be held personally liable for mismanagement.

A Note on Directors & Officers Coverage

© 2017 Insurance Noodle, a BIN Insurance Holding Agency 13

First, Errors & Omissions Insurance covers the services a nonprofit provides. Let’s say your nonprofit client offers credit counseling. Their E&O policy is triggered when someone claims one of the counselors gave inaccurate professional advice that caused a financial loss. Conceivably, a board member could be involved in providing services, but it wouldn’t necessarily fall within the parameters of their board duties.

Employment Practices Liability Insurance covers employers when workers claim their legal rights have been violated. A nonprofit’s D&O coverage typically includes EPLI to protect the board members who regularly interact with employees or are involved in the hiring process. However, this doesn’t necessarily mean non-board members are included. Investigate the policy and your client’s employment practices thoroughly.

Clients often assume one product covers all of their liability exposures, but this is not the case. Make sure your client understands what each policy can and cannot cover.

Finding Directors & Officers Coverage on Insureon Solutions

Many nonprofits know they need D&O Insurance and ask for it, but the Insureon Solutions application doesn’t. Ask your client if they need Directors and Officers coverage. If you need help, call a representative at 888-466-8868 or email info@Insureonsolutions.com.

D&O Insurance may include EPLI coverage for board members only.

A Note on Directors & Officers Coverage

NONPROFIT ORGANIZATIONS TO TARGET FOR GROWTH

15© 2017 Insurance Noodle, a BIN Insurance Holding Agency

NONPROFIT ORGANIZATIONS TO TARGET FOR GROWTH

The math is simple: current book + more clients = increased revenue. And what does increased revenue equal? One happy insurance agent!

But your day is already pretty full. Between servicing current policies, managing other agents, and filling out paperwork, finding time to research and market to new clients can be tough. And what if you do make the time but get nothing from your efforts?

The next section of this eBook is designed to help you decide which nonprofit organizations may bring you a good return on your investment.

They’re grouped as…

• Easy. You might think of these risks as slam dunks. Insureon Solutions has access to strong markets, meaning these nonprofits are often simple to write and get bindable quotes for.

• Pretty easy. These aren’t slam dunks – they may be more like a two-foot jump shot. You might not always make it, but it’s worth the effort.

• Moderate. Now we’re moving away from the hoop. These nonprofits may work with kids or host athletics, which can make finding insurance for them more difficult.

Nonprofit Organizations to Target for Growth

© 2017 Insurance Noodle, a BIN Insurance Holding Agency 16

Ease of Placement Industry

EasyThrift stores, counseling and referral services, reading programs, botanical gardens / horticultural societies, historical societies, women’s health clinics, health care centers, child daycare centers

Pretty Easy Credit counselors, sleep disorder clinics

ModerateYouth mentoring programs, community / youth centers, senior activities centers

FussySuicide prevention hotline centers, food banks / soup kitchens, adoption agencies, vocational workshops

Very HardHospices, nursing homes, child overnight camps, shelters, caregivers / home companions

• Fussy. These risks are like a three-pointer shot. They aren’t the highest percentage shot, but they might make sense for an agent who wants to corner the market.

• Very hard. Marketing to these risks is kind of like taking a half-court shot blindfolded. Don’t bother. It’s just going to make your coach mad. (For now, anyway. As Insureon Solutions markets expand and we have better access to products for these risks, we’ll let you know.)

Here’s a brief overview of risks that fall into each category:

In addition to considering the market access Insureon Solutions provides, you might also want to think about your area and expertise. For example, you might ask yourself…

• Do you live in a large city with lots of food pantries?

• Is there a dearth of credit counseling in your area?

• Have you written school policies in the past?

• Do you have an “in” with the local historical society?

These questions plus the information about the Insureon Solutions' markets can help you get a solid ROI for your time. Let’s get started.

Nonprofit Organizations to Target for Growth

EASY NONPROFIT RISKS

18© 2017 Insurance Noodle, a BIN Insurance Holding Agency

EASY NONPROFIT RISKS

Wouldn’t it be great if signing new business were as simple as giving your pitch and collecting the check? Or even better: what if clients simply walked through your door looking for insurance?

Unfortunately, that’s probably not going to happen. So what exactly does easy-to-place risk mean? What makes a particular risk easy differs from agent to agent, but in general, an easy risk is…

• Familiar to the agent.

• Part of a healthy market.

• Attractive to carriers.

Getting all three characteristics in one risk is the hard part, but Insureon Solutions can help. By connecting your agency with top-rated carriers and providing experienced underwriting consulting, Insureon Solutions can mean a better return on the time you invest on these seven types of nonprofit organizations.

Easy Nonprofit Risks

© 2015 Insurance Noodle, a BIN Insurance Holding Agency 19

The resale industry generates $12 billion per year in revenue.

1. Thrift Stores

According to NARTS: The Association of Resale Professionals, resale is a $12 billion a year industry, and though not all of these are nonprofit organizations, many of them are. Consider, for example, Goodwill Industries, whose revenue increased by 7.3 percent, reaching $3.79 billion in 2013.

Granted, insuring Goodwill may be a bit out of your scope, but the National Thrift Store Directory makes finding charity-based resale shops simple.

2. Counseling and Referral Services

The Bureau of Labor Statistics’ Occupational Outlook Handbook predicts faster-than-average growth in the next decade for a variety of counseling and referral services. It reports the growth rate should be…

• 29 percent for mental health and family counselors.

• 31 percent for substance abuse counselors.

• 20 percent for rehabilitation counselors.

Much of that growth is predicated on changes in health insurance regulation, but the BLS also cites the growing needs of military veterans and senior citizens as key factors. Your agency might want to consider targeting counseling and referral service groups, especially if the demographics in your area support these markets.

Easy Nonprofit Risks

© 2017 Insurance Noodle, a BIN Insurance Holding Agency 20

3. Reading Programs

One way to identify a potential nonprofit market for your insurance agency is to consider the needs around your neighborhood, and then look to see who is fulfilling them. One unfortunate example is literacy. The US Department of Education reports…

• 14 percent of US adults can’t read.

• 19 percent of high school graduates can’t read.

• 21 percent of US adults read below a fifth grade level.

It’s a mistake to assume this is a big city problem, but finding reading programs in less urban areas can be difficult. They are often one of many services offered under a larger umbrella of social programs. The Literacy Information and Communication System sponsored by the National Institute for Literacy offers a directory where you can search for programs in your area.

4. Botanical Gardens and Horticultural Societies

Botanical gardens are more than just big, beautiful parks. Most are dedicated to scientific research and education, offering tours and field trips as part of their mission. The same goes for horticultural societies, although they focus on cultivated plants and their aesthetics.

Either way, these NPOs could be good markets for your insurance agency. The American Public Garden Association, just one of a number of similar national organizations, has seen its institutional membership grow by 31 percent in the last 15 years. Its individual memberships saw even greater growth, jumping from 2,700 in 2000 to 8,000 in 2015.

14% of US adults can’t read, making nonprofit reading programs important for all age groups.

Certain areas seem to have more botanical gardens and arboretums. It’s not uncommon to see these organizations in large cities and college towns. Horticultural societies, however, seem to be ubiquitous.

Easy Nonprofit Risks

© 2017 Insurance Noodle, a BIN Insurance Holding Agency 21

5. Historical Societies

Go to almost any town in the United States, and chances are you’ll run into some sort of historical society. In fact, the American Association for State and Local History boasts over 6,000 institutional and individual members, many of whom you might find working or volunteering for historical societies that run local museums, archive documents, or host tours of historical sites.

While historical societies are everywhere, many operate on a shoestring budget. According to the American Historical Association, historical societies are usually short on staff and money. It cites their informal LinkedIn poll that indicates only 25 percent have more than one professional staff member.

These nonprofits may have tight budgets, but that doesn’t mean they can skimp on insurance. Rather, it just means they’ll probably need to comparison shop. If you're a Insureon Solutions member, make sure your pitch mentions that you can get quotes from multiple top-rated carriers, which helps your client compare prices.

6. Healthcare Centers and Women’s Health Clinics

You might be surprised to see healthcare clinics in the easy-to-place nonprofit category, especially because many may want Malpractice Insurance. But insurance for nonprofit medical centers is essentially the same as the standard doctor’s office class, so Insureon Solutions can typically return bindable quotes.

58% of community hospitals are nonprofits.

Health centers, including those focused on women’s health, are everywhere, and they are getting even busier since the Affordable Care Act passed. Consider, for example, that…

• The American Hospital Association lists 4,974 community hospitals, 58 percent of which are NPOs.

• This report [PDF] from the Alliance for Advancing Nonprofit Health Care claims that 100 percent of community clinics are nonprofit.

• The National Association of Free and Charitable Clinics reports a 40 percent increase in patient demand since the ACA passed.

Healthcare clinics may be a smart target for your insurance agency’s marketing efforts, especially if you already have allied health clients in your book.

Easy Nonprofit RisksEasy Nonprofit Risks

© 2017 Insurance Noodle, a BIN Insurance Holding Agency 22

7. Child Daycare Centers

Child daycare centers might be a surprise, too, but Insureon Solutions has relationships with carriers that have a strong appetite for them. And according to the latest US Census, the country has…

• 59,700 total daycare centers.

• 48,846 centers that have fewer than 20 employees.

• 24,592 centers that have fewer than five employees.

Moreover, nonprofit daycare centers are everywhere – big cities, small towns, and everything in between. But remember, it’s daycare centers that are easy to place. Group homes, shelters, and overnight camps are a horse of a different color.

Easy Nonprofit Risks

PRETTY EASY NONPROFIT RISKS

24© 2017 Insurance Noodle, a BIN Insurance Holding Agency

PRETTY EASY NONPROFIT RISKS

What makes a nonprofit risk pretty easy to place? First and foremost is carrier appetite. Insureon Solutions has good relationships with insurers who want to place sleep disorder clinics and credit counselors, so marketing these risks is usually as simple as completing the application and waiting for quotes.

But in order to properly market risks, you have to understand them.

Ask yourself questions like…

• What services does a sleep clinic offer?

• Are there nonprofit credit counselors in the area?

• Do either of these markets have growth potential?

Only you can determine if these risks are worth the effort. Should you decide to invest the time, Insureon Solutions can provide access to the markets you may need. That said, here are two nonprofit risks that may be worth your while.

Pretty Easy Nonprofit Risks

© 2017 Insurance Noodle, a BIN Insurance Holding Agency 25

1. Sleep Disorder Clinics

Concerns about sleep disorders and their impact on health have been growing exponentially since sleep medicine was founded in the 1970s. According to this press release from the American Academy of Sleep Medicine (AASM), the number of sleep centers accredited by the AASM doubled between 2007 and 2012. Considering the CDC reports that 50 to 70 million Americans have sleep disorders, chances are that number will continue to climb.

Not every sleep clinic is a nonprofit organization, but for an independent agent interested in the nonprofit market, sleep disorder clinics could be an entry point, especially in larger cities where you are more likely to run into one.

2. Credit Counselors

The Great Recession sent waves of Americans to credit counselors. First it was homeowners grappling with underwater mortgages, then the unemployed using credit cards to make ends meet, and finally people reacting to the higher payments that came with the Credit Card Accountability Responsibility and Disclosure Act of 2009.

That kind of economic trouble may be fading from memory a little too quickly. Time magazine reports that debt is still weighing down plenty of Americans – in fact, 2013 saw a 2.1 percent increase in total debt. Plus, Time states…

• 28 percent of us do not have enough savings to pay off our current credit card debt.

• 51 percent have more savings than credit card debt, but that is the lowest number reported since 2011.

The need for credit counseling isn’t going away any time soon. Moreover, the Federal Trade Commission claims that most credit counselors are nonprofit, operating out:

• Universities.

• Credit unions.

• Housing authorities.

• Military bases.

This is a healthy nonprofit market for your agency to target, so start looking for credit counselors in your area.

Total debt increased by 2.1% in 2013.

Pretty Easy Nonprofit Risks

MODERATE NONPROFIT RISKS

27© 2017 Insurance Noodle, a BIN Insurance Holding Agency

MODERATE NONPROFIT RISKS

If you had to pick between working harder and working smarter, which would you choose? Working smarter, of course – not that there is anything wrong with hard work, but it would be pretty sweet if some clients just fell into your lap with hardly any effort on your part.

Realistically, however, it might be better to stop looking at this relationship as an either-or choice and start understanding it as a sliding scale. Maybe working a little bit harder is working a little bit smarter, especially when it comes to selling insurance to nonprofits.

Only you can determine whether these moderate risks are worth the effort, but you might want to ask yourself…

• Do I already have similar clients? For example, many community centers offer counseling. If you’ve written policies for other mental health professionals, you may already have some knowledge of their exposures.

• Do any of these nonprofits spark my interest? Learning about a nonprofit is easier if you are already interested in its mission.

• Do I have a connection? Maybe your spouse volunteers or a friend manages a certain nonprofit. Review your network and find out.

Moderate Nonprofit Risks

© 2017 Insurance Noodle, a BIN Insurance Holding Agency 28

There are 5,000 mentoring programs in the US.

Notice there’s no question like, “Can I market the risk?” That’s because Insureon Solutions has appointments with insurers that have appetites for these three types of NPOs. However, each of these three risks may include services that make them a little less attractive. Let’s take a look.

1. Youth Mentoring Programs

According to a report [PDF] in the journal Psychological Science in the Public Interest, the United States boasts more than 5,000 mentoring programs and serves 3 million young people. Big Brothers Big Sisters may be the most famous, but you can find many similar programs scattered throughout any given city.

In addition to standalone nonprofits, you might find mentoring programs associated with:

• Community centers.

• Churches.

• Schools.

• Senior centers.

Most of the time, a mentoring program is fairly easy to market, especially if the focus is on advice. If the program offers athletic activities like after-school basketball sessions, the coverage may be harder to write. Another consideration: insurers typically require Abuse and Molestation Insurance for this class, which can drive up costs for clients.

2. Community & Youth Centers

Nearly every town across the United States has some sort of community center. In fact, there’s a good chance each town has a center for each religious, ethnic, or youth group within its borders, so a quick search through the Yellow Pages should get you the names you need.

Sometimes community centers have very specific missions, such as counseling for LGBTQ teens or providing music education for children. Others simply offer a smorgasbord of services, such as…

• Language lessons.

• Day camps.

• Meeting spaces.

• Exercise opportunities.

• Meal programs.

• Homework help.

The more physical activities a center offers, the harder it tends to be to insure. For example, aquatic centers and the inclusion of sports increase a center’s risk.

Note: you might notice that the programs a community or youth center offers sometimes overlap with other NPOs. That may be especially true for a community center, which might house several distinct nonprofits within its space. This, too, can affect its insurance needs and risks.

Moderate Nonprofit RisksModerate Nonprofit Risks

© 2017 Insurance Noodle, a BIN Insurance Holding Agency 29

In 2030, 25% of the population will be 60 or older.

3. Senior Activity Centers

The American population as a whole is growing older. According to Administration on Aging, the population aged 60 and older…

• Started at 6 percent in 1900.

• Jumped to 16 percent in 2000.

• Is predicted to reach 25 percent by 2030.

As the Baby Boomers move into their sunset years, the need for senior activity centers will likely increase. And just like their youth and community center counterparts, senior centers offer a wide range of services and activities, such as…

• Continuing education classes.

• Art classes.

• Volunteer opportunities.

• Meal and nutrition programs.

• Concerts.

• Day trips.

• Fitness classes.

In general, these services are generally easy to cover. However, a nonprofit senior center that provides any medical care may have a harder time finding insurance.

Moderate Nonprofit Risks

FUSSY NONPROFIT RISKS

31© 2017 Insurance Noodle, a BIN Insurance Holding Agency

FUSSY NONPROFIT RISKS

When placing easy risk, you can usually get a decent return on the time and money you invest. But there’s something to be said for going after risks that are more difficult to place. These “fussy” nonprofit risks might be harder to insure, but that may be what makes them the right market for your agency.

Think about it this way: when you go after low-hanging fruit, you can usually grab a lot of it – unless everyone around you is after it, too. So much competition makes it difficult for your agency to stand out.

Targeting trickier risk can do more than just narrow the playing field. Specialization can also help you…

• Better understand your clients’ needs. As you gain experience in insuring, say, adoption agencies, you’ll have an easier time identifying the industry’s unique exposures.

• Focus your marketing strategy. Instead of spreading your resources too thin, specialization allows you to tailor your marketing efforts to your ideal clients.

• Build your reputation. Specializing in a particular nonprofit – especially one that many agents avoid – can position you as the go-to agency for that class.

Fussy Nonprofit Risks

© 2017 Insurance Noodle, a BIN Insurance Holding Agency 32

In 2013, 49.1 million Americans lived in food-insecure households.

There’s nothing wrong with a little competition, but if you’re willing to look at other possibilities, you may end up the winner overall. Let's look at four “fussy” nonprofit classes you may want to explore.

1. Suicide Prevention Hotline Centers

The services a suicide prevention hotline provides are more essential than many people realize. According to the Centers for Disease Control and Prevention, suicide ranks as the 10th leading cause of death in the United States. Sadly, the report also indicates that death by suicide has been steadily increasing since 2000.

Offering emergency counseling over the phone presents some unusual liability risks. Moreover, many crisis lines are staffed by volunteers who go through rigorous training in preparation for taking calls.

2. Food Banks & Soup Kitchens

Feeding America reports that 49.1 million Americans lived in food-insecure households in 2013, and many turned to nonprofit organizations just to get by. That staggering need explains the 4,337 community food banks reported in the latest Census. You can find the ones in your area by searching the directory at FoodPantries.org.

What makes this risk fussy is the food preparation and storage component, most of which is done by volunteers who don't necessarily have experience or training. And it isn’t just soup kitchens that have this exposure. A food pantry often receives bulk deliveries, like pallets of bread or bags of beans, which need to be divvied up into family-sized packages.

Fussy Nonprofit Risks

© 2017 Insurance Noodle, a BIN Insurance Holding Agency 33

3. Adoption Agencies

The Congressional Coalition on Adoption Institute claims that there are 101,666 children eligible for adoption in the United States. This number only accounts for those in foster care. The number of international and infant adoptions increases that number significantly, which is probably why the last US Census found…

• 10,565 adoption agencies.

• 6,108 with fewer than 20 employees.

• 3,782 with fewer than five employees.

Not all adoption agencies operate as nonprofits, but the ones that do sometimes provide additional services, such as post-placement supervision, education, and counseling. Add to this the emotional nature of adoption, and you can see why insurer appetite may be limited.

4. Vocational Workshops

According to the Association for Career and Technical Education, the need for skilled workers is on the rise. Citing the Bureau of Labor Statistics’ Occupational Outlook Handbook, the ACTE reports…

• 806,000 job openings in trade, transportation, and utilities.

• 293,000 job openings in manufacturing.

• 30 percent of the jobs created by 2020 will require some college or an associate’s degree.

Writing vocational workshops as schools may be an option.

Consider vocational workshops as offshoots of the industries they support. That may make it easier to evaluate some of their exposures. For example, a program that teaches basic computer skills has one set of risks, but a workshop offering construction certification may have a completely different set of exposures.

Another tip: some insurers may let you write the vocational workshops as schools. That can make writing the policy simpler.

Fussy Nonprofit Risks

VERY HARD NONPROFIT RISKS

35© 2017 Insurance Noodle, a BIN Insurance Holding Agency

VERY HARD NONPROFIT RISKS

Insureon Solutions is constantly working to build new relationships with carriers so member agents can access tough markets. Unfortunately, the following markets are currently unavailable or only available for certain products:

• Nursing home facilities. According to the NAICS description, these are residences with the primary purpose of providing skilled inpatient nursing care. Assisted-living and retirement communities may offer nursing care onsite, but they have a separate code.

• Hospices. This refers to nonprofit organizations that provide inpatient palliative care for the chronically or terminally ill. NAICS categorizes them under skilled nursing care, too.

• Overnight camps. Name any activity and chances are someone offers a youth overnight camp for it. But the combination of the activity and the youthful clientele makes this a very hard risk to place.

• Adult shelters / transitional housing. Shelters that provide temporary residence for homeless people, victims of domestic abuse, or runaways can be especially difficult to insure. Also note that these differ from emergency relief for refugees or victims of disasters.

• Group homes / foster care. This category may also include boot camps for delinquent youths, halfway homes for ex-offenders, and residences for the disabled when they do not include nursing care.

• Animal shelters. Working with animals is always risky, but when you add in the potential danger of working with abused animals, the risk increases and makes rescue shelters tough to place.

• Caregivers / home companions. Insureon Solutions has some markets that may cover certain products for these nonprofit companions, except when they offer medical treatment.

Nonprofit nursing homes, overnight camps, and animal shelters = difficult risks.

Very Hard Nonprofit Risks

IDEAS FOR TARGETING NONPROFITS

37© 2017 Insurance Noodle, a BIN Insurance Holding Agency

IDEAS FOR TARGETING NONPROFITS

Knowing which nonprofit risks to target is only the first step toward building your book. The next is getting your name in front of nonprofit clients in a way that makes you their top choice for insurance.

Focusing your efforts on a specific kind of nonprofit takes some knowhow. Here are some tips that can help you market your insurance agency.

Tip #1: Go to Them

Most nonprofits want their name available to the community they serve, so locating them is seldom difficult. You can usually find contact information in national directories (e.g., Guide Star), and many cities offer NPO listings for their surrounding areas.

Your first instinct might be to use that contact information to cold call the NPOs in your area.

Your second may be to send marketing materials via email or mail. Both can work if you’ve tailored your pitch to the nonprofit’s pain points.

Another approach is to investigate their websites for other opportunities. Check out the organization’s event calendar for a chance to:

• Sponsor their fun run or 5K.

• Attend a seminar.

• Donate to a fundraiser.

• Volunteer for a day.

You might also look for your area’s community calendar. Most municipalities publish a calendar of events, and a quick read-through may give you some ideas about where to find your target market.

Rule #1 of targeting NPOs: Tailor your pitch to their pain points.

Ideas for Targeting Nonprofits

© 2017 Insurance Noodle, a BIN Insurance Holding Agency 38

Tip #2: Work Your Connections

People like to work with people they know. If they can’t, they’ll go for the next best thing – a friend of a friend. Given their tight budgets, nonprofits may be even more inclined to respond to a recommendation from a trusted source. Let your network know that you are writing insurance for nonprofits and ask individual clients if they would be willing to recommend you.

This can be a little awkward to do, but it helps if you create a situation where the referral makes sense. For example, you might want to spend an afternoon calling clients and asking if they are happy with your service. A positive response is an opening to ask for the referral.

Another situation that may make asking for a recommendation easier is when you land that first account in your targeted nonprofit area. In that moment, asking if your new client knows of others in their industry that may need your services is sensible.

Tip #3: Optimize Your Website

A website that is little more than an electronic brochure has its place, and it’s in 1998. It’s the 21st century, and if you haven’t updated your website in a way that attracts the businesses you want to write, you might as well be working with a dialup modem.

Optimize your agency's website so potential clients can find you when they search online.

One of the best ways to get the most out of your website is through search engine optimization (SEO). SEO describes the practices that drive traffic to a website. Some basic SEO techniques include…

• Creating a site that search engines understand.

• Researching the keywords people use to find nonprofit insurance.

• Publishing credible and relevant content on your site.

• Building links between your site and others.

This is a surface-level discussion of SEO, but you can dig deeper into the practice in The Beginner’s Guide to SEO on Moz.com.

Tip #4: Invest in SEM

SEM stands for search engine marketing. The term refers to all the tactics used to maximize a site’s appearance in search engine rankings, such as…

• Using keyword research and analysis.

• Paying for search engine ads.

You can find a more complete description of what SEM is and how it works in this guide by Google, but the basic message is to consider targeting nonprofits by purchasing ads on search engines.

Ideas for Targeting NonprofitsIdeas for Targeting NonprofitsIdeas for Targeting Nonprofits

39© 2017 Insurance Noodle, a BIN Insurance Holding Agency

FINAL THOUGHTS ON HELPING OTHERS FIGHT THE GOOD FIGHT

Tapping into the nonprofit market could be a smart move for the insurance agency looking to add to its book, especially considering that the 2015 Nonprofit Employment Practices Survey reports that…

• 49 percent of NPOs grew from 2008 to 2014.

• 50 percent of NPOs plan to create new positions in 2015.

• Only 7 percent of NPOs anticipate a hiring freeze in 2015.

The nonprofit sector is healthy, and that could benefit your insurance agency. But there’s a secondary benefit to consider. When you find insurance for a nonprofit, you are helping it fulfill its mission. Your guidance means it can keep working toward the greater good, and that has to be a good feeling.

Get in touch with an Insureon Solutions representative to learn more about nonprofit insurance.

Final Thoughts on Helping Others Fight the Good Fight