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Managing Director
Arthur J. Gallagher, Pasadena, Calif.

Bringing a New Depth of Knowledge

If economy of scale is a boon to the commercial sector, it is doubly so in the charitable world. But big is also complex, and that pesky "nonprofit" tag can sometimes act to discourage outside service and support people, such as insurance brokers. That is where Tim DePriest, a managing director with Arthur J. Gallagher & Co. and a senior vice president with Chapman Insurance, one of its divisions, earns his stripes.

DePriest, brings comprehensive solutions to their complex problems and deals handily with challenges that rival those in the for-profit world, clients said.

"This year, we had some staffing challenges, and Tim stepped in to assist us through our renewal process when we were having difficulty," said the human resource director for a large public health 501(c)3. "Our previous broker had us on a retrospective rating plan and a captive plan for our workers' compensation over several years. There were a lot of components that we did not understand. Tim has been working with us this year to help with our understanding of the plans and to give us a mechanism to budget for future expenditures on open claims. Tim was able to get us a cost effective workers' comp plan."

The human resources director at another community-oriented group said, "Tim and his staff well understand the unique needs and challenges of insuring sizeable and diverse nonprofit social services agencies such as ours. As a result, he has effectively supported us in devising and managing a comprehensive risk management program to protect and position our organization in achieving our mission."

Area Executive Vice President
Arthur J. Gallagher, San Francisco

A Mentor and a Resource

Many brokers win their laurels by impressing veteran insurance buyers with innovative placements, hard-nosed renewals or skillful claims management. Occasionally an intelligent but uninitiated risk manager turns to a veteran broker like Joan Dove, area executive vice president of Arthur J. Gallagher & Co., for guidance and support.

"Joan has been a mentor and resource for me, a new risk manager in the position for just a year," said one client. "She has guided my professional development and made a direct impact on the improvement and effectiveness of our association's risk programs."

Taking that advisory role to an even broader level, Dove was also co-host for the annual risk managers conference for a national youth organization. In that role, she trained more than 60 risk managers across a wide range of skills, from insurance basics to child abuse prevention. She also created a "Risk Management Road Show," that focused on child abuse prevention, transportation and the importance of contracts in risk management.

"That made a direct impact on our entire national organization's mission across the country," said a client. "On an association level, she has been instrumental in site visitations and customized training for each of our branches; answering the operational question of our managers. This has helped to make risk awareness part of our daily management culture."

Dove does not neglect the basic blocking and tackling of brokerage. One client struggled with workers' comp claims for years. Dove helped the client develop a new approach based on branch managers and supervisors training staff and focusing on loss prevention.

Executive Director
Crystal & Co., New York

Better Terms, Lower Costs

Consider the request for proposal. Some insureds put them out periodically, just to test the waters.

Others have no intention of changing, but want an outside perspective on their program. Brokers know this, and RFPs are often met with stock proposals. Scott Konrad, executive director and National Nonprofit Practice leader for Crystal & Co., won important new business, as well as a Power BrokerŪ ranking for his comprehensive response to an RFP. "We had been with our broker for several years, and they had done a decent job, but our board of directors was always worried about our directors' and officers' coverage," one risk manager said. "Our organization provides a lot of health information, and we have got to be sure our protection is thorough. It was always an area of great concern. We put out an RFP for several brokers, including our existing one. We were very impressed with the response we got from Scott. It was a very thorough analysis."

The clients hired Konrad, and implemented the "big changes" he had recommended. "They looked at our existing carriers and changed most of them, which is saying something because there are only a limited number in our market," the risk manager said. "We got better and more complete coverage, including addressing our D&O concerns. And we were able to save money on our program to boot."

Other clients lauded the facility with which Konrad moves among segments of the nonprofit world. "He serves religious institutions like ours," said one, "but also health care groups and human rights organizations. It's all not-for-profit, but each has different exposures and placement challenges."

Account Executive, Business Insurance
Leavitt Group, Concord, Calif.

Mission Accomplished

A frequent challenge to brokers serving the nonprofit sector is to provide attentive and personal service to the client organization without becoming too emotionally involved in the cause. Maintaining some professional dispassion is often necessary to keep a clear head for the very businesslike needs of placements, renewals and claims.

Tammy Mission, formerly an assistant vice president with Heffernan Insurance Brokers in Walnut Creek, Calif., is lauded by her clients as one broker who manages to care deeply for the programs she serves while always maintaining that high level of professionalism.

"Tammy is an unusual broker: one who is a go-getter, committed to the company she works for, and who adds tremendous value to the nonprofits she insures," said the insurance buyer for one outreach organization. This year, for example, another client that runs a program to benefit women and girls, credits Mission with participation far beyond the call of duty.

"When I engaged Tammy as our broker, she asked many questions about the focus and mission of the organization," this client said. "It was not idle curiosity on her part. Several months later she called to ask if she could spearhead a program."

Mission also initiated a marketing program, coordinating unsolicited one-time donations from a company's philanthropic arm. The gifts came with no restrictions and only one string attached: a face-to-face meeting with Mission. The donor organization was happy to broaden its charitable base, the recipient groups were thrilled with money over the transom, and Mission got both new prospects, but also broader understanding of her market.

Managing Director
Arthur J. Gallagher, Itasca, Ill.

On a Quest for Affordable Premium Levels

Like an evangelist, Peter Persuitti, managing director of the Religious & Nonprofit Practice with Arthur J. Gallagher & Co., is on a mission to save premiums.

One of his clients, a diocese in a midsized city, runs a captive for itself and more than two dozen other sister dioceses around the country. In 2012, Persuitti not only increased the flock of diocese participating in the captive by more than 10 percent, he developed and helped introduce a whole new line of excess property coverage. "Peter was actively out there bringing in new dioceses to our program," said the insurance manager. "It really requires a lot of guidance and hand-holding to get them to change from their existing program to ours. There are some bigger captives out there."

Some dioceses are members of other captives within the denomination, while others buy coverage on the commercial markets.

With regard to the new excess property program, "Peter really worked very closely with the reinsurers to develop the coverage at meaningful but affordable levels, and then to introduce the new policy to our members," the insurance manager also said. "That is how we grow and save money, by increasing the number of participants, and by adding new levels of coverage."

The program enhanced coverage, created a dividend and increased participation in that line by more than 60 percent. As a result, premium flowing through the captive jumped by almost 20 percent and the portfolio was rebalanced in favor of more property risk and less liability risk.

Chief Operating Officer, Greater New York
Aon, Morristown, N.J.

On Top of the Risk

Brokers in the for-profit segment have it easy: The insureds they serve largely do business with healthy professional adults. Nonprofits, by their nature, tend to those with lots of extra risk to manage. "We've got all kinds of exposures," said one client. "We've got women and infants and a website giving out medical advice. And Matt is on top of all of it."

This past year, the client made a concerted effort to consolidate all of its exposures within its general liability coverage, and credits Schneider with accomplishing what had been a long-sought goal.

"We were finally able to get everything tucked under the general liability without additional charges, and in most cases without even any changes in language." The other huge exposures that nonprofits face are in fundraising. "Matt could write a book about unforeseen problems and potential liabilities," one risk manager said. Indeed, Schneider, chief operating officer of the Greater New York region with Aon Risk Solutions, may yet do so. He also serves as an adjunct professor at Seton Hall University.

In one recent situation, an enthusiastic but overweight volunteer had trouble walking at the conclusion of an event. "We were afraid of the potential liability," said the client, not only for a claim, but also the knock-on effect it could have on rates at renewal. "Matt was right on top of it, and put our minds at ease."

In another situation, Schneider advised a client through its decision to self-insure for certain exposures. The client credits Schneider with managing the self-insurance option as if it were simply a normal placement, with full cost and risk analysis. The result was a strategic decision with a business case, not a default position.