FAQs

Since our beginnings 30+ years ago, the Nonprofit Insurance Alliance has been committed to stable and fair pricing. Our members enjoy peace of mind, knowing they won’t be subjected to the dramatic and unanticipated price swings that can happen with for-profit insurance companies. Because many nonprofits operate on tight budgets planned far in advance, they value our commitment to protect them against unexpected premium hikes. That’s one of the reasons why 95% of our members renew with us every year.

The Nonprofits Insurance Alliance provides liability insurance only for 501(c)(3) nonprofit organizations. Coverage is currently available in the following states:  Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Maryland, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, South Dakota, Texas, Utah, Vermont, Virginia, Washington and Wisconsin.

If your insurance is coming up for renewal, it’s a good time to review and evaluate your options—and make sure your coverage fits your current needs. Have there been any significant changes in your operations, in the events you host, in the people you serve? Have you started a new program or acquired a new property? Hired new staff? These and other factors may affect your insurance requirements.

It’s also a good time to examine your risk management program. Do you have the resources you need to reduce the risk of injury or accident on your premises? Does your current insurance company provide free training, for example, to make sure your volunteers are trained in safety and risk reduction?

If you are a new nonprofit organization or expect soon to receive your 501(c)(3) status, this is the ideal time to learn about your liability options. Fill out the Get a Quote  form and take a moment to review our Coverages page. You might also want to sign up for a free webinar.

No one ever wants to think about the bad things that can happen. But unfortunately, they do—someone slips or falls on your premises, a volunteer is injured in the line of assigned duties, an employee or officer is accused of misconduct. Depending on the financial hardship or damage to your reputation that results, your nonprofit mission may be seriously jeopardized. Be safe, not sorry. It doesn’t cost you anything to learn about your insurance options. If you operate an organization, your clients, employees, volunteers and the public deserve to know that you can compensate if you happen to cause injury.

It can take up to 5 days to receive a quote. Here’s why. To accurately determine the type of coverage you need, the risks of your organization must be evaluated which involves several steps. If you submit your basic information on the Get a Quote form, we provide it to a broker with experience in working with nonprofits (or one that you specify). The broker will then contact you and request additional information about your size, your operations, and key factors like whether or not you have volunteers, host events, or serve children or the elderly. This information will be included in the application submitted by the broker. Our team must then review, analyze and price the risk presented by your operations. Then your broker will develop a plan of options and discuss them with you.

Nonprofit Organizations

Applications for insurance from the Nonprofits Insurance Alliance must be made through an insurance broker. To inquire about whether your broker is authorized to work with us, please email us or call 800-359-6422. If you would like a referral to an insurance broker we work with in your area, proceed to Get a Quote.

Insurance Brokers

We work with selected independent insurance brokers. If you are interested in doing business with us, contact Broker Services, brokerservices@insurancefornonprofits.org, or call 831-459-0461.

We provide coverage to nonprofits exclusively through qualified brokers. Having a broker is to your advantage because he or she is independent and can present you with multiple options based on your specific risks of potential loss or injury. A broker will help you understand policy limitations or additions that will affect the coverage.

A broker can also make valuable recommendations based on knowledge of the insurance carrier and his or her clients’ experience with them. If you don’t have a broker, we can recommend who has a track record of working for their client’s best interests.

An insurance broker should be:

• Experienced with regard to the special risks facing 501(c)(3) nonprofits and the insurance products best suited to protect them against loss.
• Willing to take the time to learn about your agency’s operations and to provide thoughtful advice and counsel about your risks and insurance needs.
• Assertive in advocating your interests.
• Responsive to your changing needs. He or she should return your phone calls, assist with claims filing, notify insurers of any change, issue certificates of insurance, and assist with the design of risk management strategies.

If you don’t have a broker, we can recommend one with a track record of working for their client’s best interests. The brokers we work with consider each nonprofit’s unique risk profile. Some brokers may have an eye toward their best commission instead of what is really appropriate for a nonprofit. The brokers we recommend are expected to look out for your best interests.

Our specialized coverages are designed exclusively to meet the needs of nonprofits.

Insurance Coverages

• General Liability
• Directors and Officers Liability including Employment Practices
• Directors and Officers Liability excluding Employment Practices
• Improper Sexual Conduct and Physical Abuse Liability
• Social Service Professional Liability
• Employee Benefits Liability
• Business Auto Liability
• Non-Owned/Hired Auto Liability
• Umbrella Liability
• Liquor Liability
• Auto Physical Damage (NIAC)
• Businessowners Property (NIAC)
• Inland Marine (NIAC)
• Employee/Volunteer Dishonesty (NIAC)

Companion Programs:

• Auto Physical Damage (ANI)
• Businessowners Property (ANI)
• Employee/Volunteer Dishonesty (ANI)
• Inland Marine (ANI)
• Participant/Volunteer Accident

We look for ways to cover claims within our policy, not for ways to decline them. If liability is clear when a claim is presented, we pay it promptly. We are partners with our members, and take seriously the trust they place in us to protect them. However, if liability is uncertain, we will thoroughly investigate and resolve the claim in a manner that is both conscientious and practical.

Nonprofits Insurance Alliance is a group of 501(c)(3) nonprofit, tax-exempt insurers whose purpose 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 Alliance of Nonprofits for Insurance, RRG® (ANI) is an insurer and part of the Nonprofits Insurance Alliance® (NIA) group brand. ANI is a risk retention group that provides liability insurance to 501(c)(3) nonprofits with locations outside of California. ANI was founded in 2000 and, like all insurers under the NIA brand, is rated A IX (Excellent) by AM Best.

No. Nonprofits Insurance Alliance® or NIA is a group brand made up of nonprofit insurers, all rated A IX (Excellent) by AM Best. We insure 25,000+ 501(c)(3) nonprofits in 32 states and DC. In addition to our coverages, we offer companion programs with carrier partners.

The Nonprofits Insurance Alliance is comprised of 4 distinct 501(c)(3) nonprofit organizations:

• Nonprofits Insurance Alliance of California (NIAC) – Provides liability insurance to 501(c)(3) nonprofits in California—Founded in 1988, NIAC is a liability insurance pool.
• Alliance of Nonprofits for Insurance, Risk Retention Group (ANI) – Provides liability insurance to 501(c)(3) nonprofits with locations outside California—Founded in 2000, ANI is a risk retention group.
• National Alliance of Nonprofits for Insurance (NANI) – Provides property reinsurance—Founded in 2000, NANI is a captive reinsurance company.
• Alliance Member Services (AMS) – Provides staff, services and support to the other three companies—Founded in 2000, AMS is a management company that provides staff and services to the other companies in NIA.

Nonprofits Insurance Alliance of California (NIAC) is a risk pool authorized under Chapter 5005.1 of the California Corporations Code which became law in 1986.  This law was amended in 2015 to enable risk pools in California to provide coverage for property as well as liability. This change was passed as part of a consent agenda because there was such a consensus on how well the organizations operating under this law are serving the nonprofit community. Since risk pools are authorized under the California Corporations Code, they are specifically not regulated by the Department of Insurance in California.  This law is modeled after the Joint Powers Authorities which are used by many California municipalities.  As such, risk pools and Joint Powers Authorities are not part of the guarantee fund.

We differ from other insurance companies in 6 key areas: mission, type of coverages, pricing, claims-handling, risk management services, and our dividend plan.

• MISSION. Insuring nonprofits and protecting the nonprofit sector is our entire mission. We are 501(c)(3) nonprofits ourselves and we are governed by the nonprofits we insure. NIAC is a risk pool, not an insurance company. ANI is a Risk Retention Group.
• COVERAGES. Our coverages are tailor-made for the unique needs of 501(c)(3) nonprofit organizations, including special events, liquor liability, volunteers, non-owned hired auto, counselors, social workers, and many more.
• STABLE PRICING. We are committed to stable and appropriate pricing that protects our members from unexpected premium hikes.
• INSPIRED SERVICE. If liability is clear when a claim is presented, we pay it promptly. Along with our quick response, our members value our personal touch and high standard of service. When you contact us, you will receive personal one-on-one service from a highly qualified and caring nonprofit insurance professional. We are here to help.
• RISK MANAGEMENT. In 2021, we provided $3.2 million in FREE and highly discounted services to our more than 25,000 nonprofit members, including loss control consultations, driver training, labor and employment law support, sexual harassment training, and volunteer program training.
• DIVIDEND PLAN. Over the past 15 years, our members have received $50 million in dividends. This is because we exist only to serve our members. If our claims experience is better than anticipated, members benefit—not stockholders.

Commercial carriers sometimes compete for nonprofit business and offer cheap rates during “soft markets,” that are later increased when the market changes. Unlike commercial carriers, the Nonprofits Insurance Alliance is committed to maintaining stable and appropriate pricing. We do this by relying on our extensive database of accident and injury claims which enables us to more accurately assess each nonprofit’s individual risk and set appropriate coverages.

NIAC, founded in 1989 as a liability insurance pool, was originally capitalized with $1.3 in loans from the following foundations:

Ford Foundation
Wallace Alexander Gerbode Foundation
San Francisco Foundation
Walter S. Johnson Foundation
David & Lucile Packard Foundation
Marin Community Foundation

ANI was founded in 2001 as a risk retention group, which along with an affiliate captive reinsurance company was capitalized with $10 million from two foundations. Each of the following foundations contributed $5 million.

Bill & Melinda Gates Foundation
David & Lucile Packard Foundation

The Nonprofits Insurance Alliance^® is rated A IX (Excellent) by AM Best. A.M. Best is the premier rating agency of insurance companies. NIAC, the first company in NIA, was one of the first insurance pools, or alternative insurers, to be rated by AM Best. The rating process involves a rigorous review of company operations, management, history and financial position.

According to AM Best, “The rating recognizes the NIA’s excellent capitalization and operating performance, strong management, and effective niche market strategy. It also considers the companies’ strategic roles and the benefits they derive as part of the Nonprofits Insurance Alliance.”

The Nonprofits Insurance Alliance (NIA) is conservatively reinsured by a group of highly rated reinsurers.

Since our beginnings 30+ years ago, the Nonprofit Insurance Alliance has been committed to stable and fair pricing. Our members enjoy peace of mind, knowing they won’t be subjected to the dramatic and unanticipated price swings that can happen with for-profit insurance companies. Because many nonprofits operate on tight budgets planned far in advance, they value our commitment to protect them against unexpected premium hikes. That’s one of the reasons why 95% of our members renew with us every year.

When we experience better than expected financial outcomes, we share it with our members! Over the past 15 years, NIAC has declared more than $50 million in dividends for its nonprofit members in California. ANI is not yet of a sufficient size to begin paying dividends, but ANI members are already earning loyalty credits toward potential future dividends. For more information on this topic, visit the Dividend Plan page.

We look for ways to cover claims within our policy, not for ways to decline them. If liability is clear when a claim is presented, we pay it promptly. We are partners with our members, and take seriously the trust they place in us to protect them. However, if liability is uncertain, we will thoroughly investigate and resolve the claim in a manner that is both conscientious and practical.

There are many different types of nonprofit organizations, but only 501(c)(3) federally tax-exempt nonprofits qualify for membership in the Nonprofits Insurance Alliance. Some examples include: Community Centers, Senior Programs, Counseling Centers, Daycare and Youth Programs, Homeless Services, Hospices, Foster Family Agencies, Group Homes, Drug and Alcohol Recovery, Animal Rescue, Environmental Programs, Residential Programs, Arts and Theatre Groups and many more.

The Nonprofits Insurance Alliance provides liability insurance only for 501(c)(3) nonprofit organizations. Coverage is currently available in the following states:  Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Maryland, Michigan, Minnesota, Missouri, Nebraska, Nevada, New Jersey, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, South Dakota, Texas, Utah, Vermont, Virginia, Washington and Wisconsin.

• Ease of doing business: Secure 24/7 website for information exchange.
• Productivity: Advanced technology tools like Electronic Data Interchange (EDI).
• Inspired service: Fast, proactive response from specialized nonprofit insurance professionals.
• Automatic renewal for small accounts.
• Expertise: 501(c)(3) nonprofits are our only business.

• Exclusive nonprofit focus: All products and services especially tailored to the nonprofit sector by companies they control.
• Fair and equitable pricing: rates are based on specific levels of risk — not on the
  whims of the market.
• Expert claim-handling: We look for coverage, not reasons to decline claims.
• Risk management services save our members millions of dollars.

We work with selected independent insurance brokers. If you are interested in doing business with us, contact Broker Services, brokerservices@insurancefornonprofits.org, or call 831-459-0461.

Upon appointment, brokers are required to:

• attend our Broker/CSR 60-minute orientation webinar, and
• participate in CSR, Member Services webinar & EDI Training

A Broker of Record (BOR) is a request from the nonprofit to transfer their account to a new insurance broker. Any BOR request must be approved by the Broker Services Manager before the BOR is processed. To submit a BOR, please be aware of the following:

• The first step is to submit a BOR request letter to brokerservices@insurancefornonprofits.org. This letter must be signed by someone who is authorized to make insurance decisions at the nonprofit, such as a member of management or the board of directors, and it must be on the organization’s letterhead and include both the signer’s printed name and title.
• Before we will accept a BOR, the nonprofit must be up-to-date on payments owed. If there is an outstanding balance, we will halt the process until payment is received.
• If the nonprofit is on Agency Bill, we will ask the new insurance broker to confirm that they are willing to take responsibility before we proceed.
• Once we have received a BOR request with an authorized signature, we send a notice to both insurance brokers informing them of the request.
• The incumbent insurance broker has 3 days to secure a countermanding letter. If a countermanding letter is not received, the BOR will be processed.
• If the incumbent broker informs us that they will not be seeking a countermand or if the three day allowance passes, the BOR will be processed.
• Once processed, the new broker will receive an email advising that the policies have been released. Upon this notification, the policies can be found by logging on to our secure website.

In addition to these steps, please note the following:

• We only accept BOR requests on active member-insureds. BORs are not normally accepted on new business, unless an exception is approved by the Broker Services Manager.
• A BOR may be received and approved at any time during the policy term. However, we recommend that BOR’s be executed at least 60 days prior to the renewal of the insurance policy.
• The new insurance broker must have other business with the Nonprofits Insurance Alliance and be an active insurance broker in good standing. If the new broker is not actively appointed with us, the BOR request may be submitted through one of our wholesalers.
• Commission paid on an account subject to a BOR does not change. Resolution of any disputes regarding commission or other issues between brokers is the responsibility of the brokers themselves, and not ANI or NIAC.

NIA Members

Call 866-718-1947 to report EMERGENCY claims during non-business hours. 

If you have had any incident, contact your broker and have them file a claim using a Loss Notice form by email to newclaims@insurancefornonprofits.org.

ANI/NIAC Brokers

All new claims must be reported by the broker on a Loss Notice form as indicated below:

• Business Auto claims should be reported on an Automobile Loss Notice form.
• General Liability claims should be reported on a General Liability Loss Notice form.
• Specialty lines claims (Improper Sexual Conduct, Social Service Professional and Directors and Officers) should be reported on the General Liability Loss Notice form.
• Property claims should be reported on the Property Loss Notice form.

Using one of these Loss Notice forms, complete as much information as you have and send it, with any attachments provided to you by the insured to the following email: newclaims@insurancefornonprofits.org.

For Information about an existing claim, please log into our secure website. Most of the information requests we receive by phone and email are for information about claims that is readily available on our secure website 24/7. Claim number, date of loss, adjuster name, short description, and even some detailed information such as vehicle involved (if applicable). The secure page also lists reserves and payments made. Check it out today!

Brokers may download a one page PDF instruction sheet for accessing claims information on our secure website here.

Loss Notice Forms must be filled out by the broker and emailed to us:

Member-Insured Forms

Incident Report Form

Collision Report Form

Claims Instructions for ANI/NIAC Members

Broker Forms

GL Loss Notice

Auto Loss Notice Form

Property Loss Notice Form

Note: Even if you are sending in an incident or accident for reporting purposes only, you still need to send a completed Loss Notice form.

The property/casualty insurance market operates cyclically between soft markets when insurance is relatively available and affordable and hard markets when insurance capacity shrinks and prices increase, sometimes dramatically.

The “alternative market” of policyholder-owned insurance companies, like the Nonprofits Insurance Alliance, grew out of consumers’ frustration with the uncertainty in availability and affordability of insurance. Through these alternative market organizations, policyholders have learned that they can gain control of an important financial service and provide better insurance coverage at lower average rates. Industries, such as universities and colleges, hospitals and municipalities as well as nonprofits, have had success with alternative insurance. The success of the Nonprofits Insurance Alliance makes it evident that nonprofits have greatly benefited from embarking on this move to alternative insurance.

A charitable risk pool is comprised of nonprofit organizations that qualify under section 501(c)(3) of the Internal Revenue Code. Like self-insurance, risk retention groups, and captive insurance companies, charitable risk pools are part of the “alternative” insurance marketplace. A fast growing sector, it is estimated that more than fifty percent of total commercial property and casualty premiums are now part of this alternative market.

A risk retention group (RRG) is a liability insurance company that is owned by its members. Under the Liability Risk Retention Act, RRGs must be licensed by one state. The Alliance of Nonprofits for Insurance (ANI) is licensed by and domiciled in the state of Vermont. ANI chose Vermont as its state of domicile because it is known as the “gold standard” for regulating RRGs. Vermont is regarded as a thorough, but fair, regulator. Once licensed by its state of domicile, an RRG can insure members in all states in which it registers to do business. Similar to other insurance companies, RRGs typically retain a portion of the risk they underwrite and purchase reinsurance for large claims.

Learn more about RRGs here.

Insurance works because of the law of large numbers and the ability of insurance companies worldwide to share in the risk of loss by ceding to others a portion of the risk they undertake from their policyholders. Nearly every insurance company purchases reinsurance to assure that unusually large claims are shared. Three highly rated reinsurers (Swiss Re, Hannover Re and Aspen Re) reinsure member companies of the Nonprofits Insurance Alliance.