NIAC was founded in 1989 as a liability insurance pool, owned and operated by its nonprofit members. NIAC was originally capitalized with $1.3 million 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 and an affiliate captive reinsurance company were capitalized with $10 million from two foundations. Each of the following foundations contributed a $5 million grant to the effort.