As discussed in the previous post, having the right type of insurance is not only important to make sure you are adequately covered but to ensure you are not paying too much for the coverage you require.

An example that relates to fraud insurance could be where your organisation operates with a small budget or handles minimal amounts of cash yet the cost of fraud insurance and the excess could be relatively expensive.  Instead of having this form of insurance due to the cost an investment in a safe or security system may be the better option.

The important issue is that as part of your review you are clear about the coverage that is required and that the insurance policy actual provides the correct level of coverage.  Avoid cutting costs with insurance policies by under insuring.  While you may have saved a few dollars on the policy the additional funds that may need to be contributed due to a smaller payout will far exceed the savings.  Also, review the excess that may be required to be paid in the event of a claim as often a policy may appear to be good value but the excess is very high.

Furthermore, check the geographical locations that your policies cover.  For example, while activities or events are covered in your own premises, do you still have coverage if you run events away from your main location.  For example, fundraising events held at another location may not be covered.  One last point that is critical is to be aware of any circumstances where exclusion may apply.  There is nothing worse than believing you have coverage until you need to make a claim and are advised that in fact you are not covered due to an exclusion clause.

Once you have determined your insurance requirements the next issue is to ensure you get value for money when obtaining the range of policies.  The next post examines this issue.