Nonprofits Insurance Alliance Introduces New Coverage to Reimburse California Nonprofits for Employees’ Auto Physical Damage Claims

SANTA CRUZ, Calif.--(BUSINESS WIRE)--Nonprofits Insurance Alliance (NIA), the nation’s leading insurer exclusively serving 501(c)(3) nonprofits, is introducing insurance to protect nonprofit employees in California. The new auto coverage will reimburse nonprofits for payments made to their employees for auto physical damage caused on personal vehicles during work-related activities. The coverage is effective July 1, 2020.

Many personal auto line carriers have adopted exclusions that eliminate coverage when the driver is involved in business-related activity, leaving nonprofits with additional expenses they may have to cover for employees. “Our new coverage fills a gap that is unfair to employees of nonprofits,” said Brian Johnson, the Chief Underwriting Officer at NIA. “Nonprofits rely on employees to use their own vehicle for work-related duties, and the employees shouldn’t be penalized for it.”

In California, an employer must compensate an employee for all necessary expenses incurred by work-related duties. When an employee is using their own vehicle, the primary coverage for any auto physical damage claim is the employee’s own personal auto insurance. If the personal auto carrier denies the claim because the driver was working, the expense of auto repair becomes the responsibility of the employer. New coverage NIA is announcing today fills that gap, mitigating the burden on the nonprofit.

The new Non-owned Auto Physical Damage Reimbursement (Employee Vehicles) coverage will help nonprofits who are required to reimburse their employees for losses related to auto physical damage claims. The new NONPROFITS OWN™ coverage is added to the Business Auto Liability Coverage Form for NIA’s California members.

NIA offers stably-priced, specialized insurance coverages for the unique operational needs of 501(c)(3) organizations. “By continuously looking for ways to address and mitigate exposure to risk, we’re helping protect nonprofits and building long-term sustainably in the sector,” says Johnson.

NIA’s NONPROFITS OWN™ full spectrum of property and casualty coverages are created by nonprofits, for nonprofits. Brokers can learn more about NIA’s innovative coverages and risk management solutions by visiting https://insurancefornonprofits.org/exposures-concerns-solutions.pdf.

About Nonprofits Insurance Alliance

Nonprofits Insurance Alliance (NIA) is the nation’s leading property and casualty insurer exclusively serving nonprofit organizations. Founded in 1989 in Santa Cruz, CA, NIA is a social enterprise developing the long-term sustainability of the nonprofit sector. NIA has one of the best customer retention rates in the industry. NIA members enjoy stably-priced insurance, specialized insurance coverages, dividends, and innovate risk management and member services. The NIA group brand is comprised of Alliance Member Services (AMS) and three AM Best A VIII (Excellent) rated insurers: Nonprofits Insurance Alliance of California (NIAC), Alliance of Nonprofits for Insurance, RRG (ANI), and National Alliance of Nonprofits for Insurance (NANI). All organizations under the NIA brand are 501(c)(3) nonprofits. Learn more about Nonprofits Insurance Alliance at insurancefornonprofits.org/about.