SARC Insurance Risk Bulletin | Managing Risk When Expanding Programs or Services

Provided by Butler Byers Insurance – September 17, 2026

Organizations are continually evolving to meet the needs of the individuals and communities they serve. This may involve introducing a new program, expanding an existing service, purchasing new equipment, serving a different group of people, or simply delivering services in a different way.

While these changes may still fall within an organization’s overall mission, they can create new risks that were not contemplated when the organization’s insurance coverage was originally arranged.

When the Mission Stays the Same, but the Risk Changes

It can be easy to assume that a new activity is automatically covered because it supports the same organizational mission. From an insurance perspective, however, the purpose of an activity and the risk created by that activity are two different considerations.

For example, an organization may introduce:

• A new recreational or community-based activity.
• A vocational program involving tools, machinery or specialized equipment.
• Services delivered at peoples’ homes or other off-site locations.
• A social enterprise or revenue-generating activity.
• Additional responsibilities involving personal care, supervision or professional services.

Each of these may be entirely consistent with the organization’s mission, but they can also introduce different Property, Liability, Professional Liability, Abuse Liability, Cyber or other insurance exposures.

When Programs Gradually Change

Changes do not always happen through the launch of a major new program. Sometimes an existing program simply evolves over time.  New activities may be added, services may be provided at different locations, or an organization may gradually take on additional responsibilities.

This is sometimes referred to as “scope creep.” Because no single change may seem significant on its own, it can be easy to overlook how different a program has become from the activities originally described to the insurance company.

A useful question to periodically ask is:

Are we doing anything today that is materially different from what we were doing when our insurance coverage was last reviewed?

If the answer is yes, it is worthwhile discussing the change with your insurance broker.

Why Does the Insurance Company Need to Know?

Insurance companies assess an organization based on the activities and exposures presented to them. A new or expanded activity may be acceptable under the existing insurance policy, or it may require additional information, changes to coverage or other considerations.

Notifying the insurance company does not necessarily mean there will be a change in coverage or additional premium. In many cases, the insurer may simply confirm that the activity can be accommodated under the existing policy.

The important part is having that discussion before a loss occurs, rather than discovering afterwards that an activity was not contemplated or requires a different type of insurance.

Before Starting Something New

Before introducing or materially expanding a program, consider whether the change creates new risks. This could include changes to:

• The individuals being served or level of support required.
• Staff or volunteer responsibilities and training.
• Tools, machinery or equipment being used.
• Locations where services are provided.
• Personal information being collected or stored.
• Contracts, policies and procedures associated with the program.

Final Thoughts

For organizations participating in the SARC Insurance Program, we encourage you to contact the SARC Insurance Program team when considering a material change to your programs or services. We can review the proposed activity and, where necessary, discuss it with the insurance company to determine whether it can be accommodated under the existing insurance program.

Programs naturally evolve as organizations respond to changing community needs. Taking the time to consider the risks associated with those changes can help ensure that your risk management practices and insurance coverage evolve along with them.

This article is intended for general information purposes only and does not constitute legal advice. Organizations should consult legal counsel and their insurance broker regarding specific circumstances.

Got questions? Want to see what the SARC Insurance Program can do for you?

Contact Hernard Chan or Lynn Cross at Butler Byers Insurance:

Phone: (306) 653-2233 or 1-877-467-7272 (INS-SARC)
Email: myinsuranceteam@butlerbyers.com