Nonprofits Insurance Alliance Group

Nonprofits Insurance Alliance Group
Industry Financial Services
Founded 1989
Headquarters Santa Cruz, California, United States
Area served
 32 states and Washington D.C.
Key people
 Pamela Davis, Founder, President and CEO
Products Liability and Property Insurance
Total assets $415 million USD[1]
Number of employees
 90
Website insurancefornonprofits.org

The Nonprofits Insurance Alliance Group is a group of cooperative nonprofit insurance organizations that provide liability insurance to 16,000 501(c)(3) nonprofit organizations in the United States. The Group is rated A (Excellent) by A.M. Best and operates in 32 states and Washington D.C.[2]

Mission and Services

The Nonprofit Insurance Alliance Group's mission is to serve 501(c)(3) tax-exempt nonprofit organizations by providing a stable source of reasonably priced liability insurance tailored to the specialized needs of the nonprofit sector, and to assist these organizations to develop and implement successful loss control and risk management programs. The slogan for the Group is, “A Head for Insurance, a Heart for Nonprofits.”

The Group's insurance coverages include General Liability, Directors and Officers, Flat Rate D&O, Improper Sexual Conduct, Social Service Professional, Employee Benefits Liability, Business Auto, Non-Owned/Hired Auto, Umbrella Liability, Auto Physical Damage, Employee Dishonesty, Commercial Property, and Participant/Volunteer Accident.[3]

History

Pamela Davis, the Group's Founder, President and CEO, was a graduate student at UC Berkeley during the liability insurance crisis of the 1980's, when insurance companies raised their premiums drastically, reduced their coverages, and left some segments of the market, including many nonprofits, completely uncovered.[4] Davis' master's thesis, documented how the insurance crisis was harming nonprofit organizations and in some cases even putting them out of business. In 1987, she testified before the California General Assembly that:

Between 1984 and 1986, general liability insurance premiums increased 200 percent or more for one out of four charitable nonprofit organizations in California. During that same period, insurance companies canceled or refused to renew the general liability policies of one out of five California charitable nonprofits. Some important human service programs, such as childcare, foster care, group homes and health service were forced to dramatically cut services or close because they couldn’t find affordable insurance.[5]

Based on her research, Davis was convinced that conventional insurers did not fully understand insurance risk in the nonprofit sector, so she set out to create a nonprofit risk pool that could better meet the needs of nonprofits in California.[6] In 1989, Davis secured $1.3 million in loans from nonprofit partners and foundations to create the Nonprofits Insurance Alliance of California (NIAC), the first and largest company in the Group.[7]

Over the next decade, NIAC grew to serve thousands of nonprofits, but its operations were limited to the state of California. In order to replicate the NIAC model nationwide, Davis secured $5 million from the Bill & Melinda Gates Foundation and $5 million from the David & Lucile Packard Foundation to found the Alliance of Nonprofits for Insurance, Risk Retention Group (ANI).[8][9]

Companies in the Group

The Nonprofits Insurance Alliance Group is composed of four nonprofit organizations:[10]

Press Coverage

Coverage of the Nonprofit Insurance Alliance Group's work includes:

Further reading

References

  1. ↑ "2015 Annual Report". Nonprofits Insurance Alliance Group.
  2. ↑ "A.M. Best Affirms Ratings of the Members of Nonprofits Insurance Alliance Group". A.M. Best.
  3. ↑ "List of Coverages". Nonprofits Insurance Alliance Group.
  4. ↑ Lawrence A. Berger, J. David Cummins, Sharon Tennyson. "Reinsurance and the liability insurance crisis". Springer.
  5. ↑ "Mission & History". Nonprofits Insurance Alliance Group.
  6. ↑ Olney, Kathryn. "Managing Risk: Nonprofits Insurance Alliance of California is thriving, despite taking on clients that no one else would". Stanford Social Innovation Review.
  7. ↑ Pittman, Jennifer. "Santa Cruz nonprofit insurance provider marks milestone, expansion". Santa Cruz Sentinel.
  8. ↑ "Nonprofits' Insurance Alliance of California Gets $5 Million Boost from Bill and Melinda Gates". Bill & Melinda Gates Foundation.
  9. ↑ Tapia, Catherine. "Calif. Nonprofits Charitable Risk Pool Plans National Expansion". Insurance Journal.
  10. ↑ "Nonprofits Insurance Alliance Group Fact Sheet" (PDF). Nonprofits Insurance Alliance Group.
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