Nonprofits Insurance Alliance - 2018 NIA Annual Report

Tom Wander Chair of NIAC & AMS, Vice Chair of NANI “...we were humbled by the heroic efforts of nonprofit executives who worked tirelessly to protect their clients, even when they themselves had lost their homes and every- thing they owned.” A white paper about the liability insurance crisis affecting nonprofits published in 1987 and funded by the Conrad N. Hilton Foundation and the California Community Foundation included in its preface, “With greater awareness of the nature of the present dilemma and, most importantly, with increased options to improve what the nonprofit community can do to help itself, perhaps the day will come when what is now seen as a crisis will be referred to as an opportunity realized.” And here we are. During 2018, it was our privilege to serve 18,447 member nonprofits. They rewarded our commitment to them by continuing to renew with us in large numbers. In 2018, nearly 94 percent of members renewed with us, and we welcomed 2,333 new members. We also are delighted to report that 5,143 members have been with us continuously for ten or more years. During 2018, NIAC, our California company, experienced the largest claim in its 30-year history with the devastating Camp and Woolsey fires. While our team went into overdrive to get money and assistance to our members, especially those dealing with the devastation in the town of Paradise, we were humbled by the heroic efforts of nonprofit executives who worked tirelessly to protect their clients, even when they themselves had lost their homes and everything they owned. We believe the ultimate payout from these fires to our members will be about $25 million. However, because of excellent reinsurance partners, the ultimate cost to us will be less than $2 million. Now that we have demonstrated an ability to effectively insure nonprofits for property insurance as well as liability, it is becoming more difficult for the insurance industry to credibly oppose our efforts to pass the Nonprofit Property Protection Act in Congress. We anticipate a new bill that would allow us to insure property outside of California will be introduced again in the 116th Congress with strong bipartisan support. 2 A Cooperative of Nonprofits, for Nonprofits.