NonProfits' United
Encyclopedia
NonProfits' United established in 1988 as Paratransit Insurance Corporation and based in Oakland, California
, is a cooperative
self-insurance
pool that offers commercial auto insurance and workers' compensation
coverage to California
nonprofit agencies, including senior centers, food bank
s, group home
s, child development
programs, health clinics, disabled services programs, and other social service providers.
alternative to traditional commercial insurance, and is California’s oldest self-insurance and risk management
service provider for nonprofit organizations. For member organizations, NonProfits' United provides stable, affordable insurance programs, expert claims settlement, driver instruction, safety and loss control services, member awards programs, and on-site consulting.
NonProfits' United operates two self-insurance groups, the Vehicle Insurance Pool (VIP), established in 1988, and the Workers’ Compensation Group (WCG), which commenced operations in 2004. Each is a member-owned and governed cooperative
venture of nonprofit organizations committed to effective risk management and insurance cost containment.
Rather than having its business regulated by the California Department of Insurance
, NonProfits' United has an unusual situation in that it operates under provisions of the California Corporations Code, which was amended to allow private nonprofit organizations to create insurance pools.
NonProfits United provides funding for innovative projects, and offers incentive and grant programs to reward members and their employees for their commitment to safety.
providers in California. Due to rising insurance costs in the mid-1980s, many nonprofit transportation agencies were shutting down, causing a critical shortage of paratransit services in California. In some cases, nonprofit agencies could not get any vehicle insurance coverage from traditional commercial insurance carriers, and when they could find coverage, premiums were often inflated by two hundred percent or more.
Because of this crisis, a group of nonprofit executive directors led by Bill Durant, in concert with the California Association for Coordinated Transportation (CalACT), looked at the feasibility of forming a self-insurance pool. Peter Steinert, a California Department of Transportation
employee, submitted a successful grant proposal to pay for the feasibility study, and a steering committee was formed to hire and work with consultants. The original CalACT steering committee that started NonProfits' United included Jeffrey Webster, Ron Servis, John Q. Pounds, Frank Baker, Peter Steinert, Ann Fleming, Robert Garcia, June Gilmore, Dennis Studebaker, Bill Brashears, and Bill Durant.
Over seventy founding member organizations --all nonprofit agencies, with a majority focused on transportation-- were assembled to form the Paratransit Insurance Corporation in 1988, becoming the first nonprofit insurance pool in California. During its first decade, the membership of Paratransit Insurance widened to include most sectors of the nonprofit community, prompting the name change to NonProfits’ United in 1998.
practices indicate a responsible, successful approach to loss control.
Among the successful programs initiated by the Vehicle Insurance Pool is a rear crossview mirror purchase program. By evaluating losses incurred by member agencies, it was discovered that many claims arose from accidents that occurred while drivers were backing up their vehicles. Installing rear crossview mirrors on certain types of vehicles has reduced such accidents by as much as 85 percent.
In 2002, when workers' compensation premiums were doubling annually for many nonprofit agencies in California, the crisis prompted NonProfits’ United to explore the feasibility of offering workers’ compensation insurance programs. Using the same model as the Vehicle Insurance Pool, the Workers' Compensation Group was established as an alternative insurance provider for the numerous nonprofits strained financially by rapidly increasing workers’ compensation insurance premiums.
With three core members, the NonProfits’ United Workers’ Comp Group took root in December, 2004. Within a year, the Workers' Compensation Group comprised over forty members.
The Worker's Compensation Group empowers member organizations by educating them about the advantages and responsibilities of self-insuring. Advantages for members of the Workers' Compensation Group include savings of as much as thirty percent on premiums.
Oakland, California
Oakland is a major West Coast port city on San Francisco Bay in the U.S. state of California. It is the eighth-largest city in the state with a 2010 population of 390,724...
, is a cooperative
Cooperative
A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit...
self-insurance
Insurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
pool that offers commercial auto insurance and workers' compensation
Workers' compensation
Workers' compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment in exchange for mandatory relinquishment of the employee's right to sue his or her employer for the tort of negligence...
coverage to California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...
nonprofit agencies, including senior centers, food bank
Food bank
A food bank or foodbank is a non-profit, charitable organization that distributes mostly donated food to a wide variety of agencies that in turn feed the hungry. The largest sources of food are for-profit growers, manufacturers, distributors and retailers who in the normal course of business have...
s, group home
Group home
A group home is a private residence designed or converted to serve as a non-secure home for unrelated persons who share a common characteristic.-Types of group homes:...
s, child development
Child development
Child development stages describe theoretical milestones of child development. Many stage models of development have been proposed, used as working concepts and in some cases asserted as nativist theories....
programs, health clinics, disabled services programs, and other social service providers.
Insurance cooperative
NonProfits' United is a member-governed and funded cooperativeCooperative
A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit...
alternative to traditional commercial insurance, and is California’s oldest self-insurance and risk management
Risk management
Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities...
service provider for nonprofit organizations. For member organizations, NonProfits' United provides stable, affordable insurance programs, expert claims settlement, driver instruction, safety and loss control services, member awards programs, and on-site consulting.
NonProfits' United operates two self-insurance groups, the Vehicle Insurance Pool (VIP), established in 1988, and the Workers’ Compensation Group (WCG), which commenced operations in 2004. Each is a member-owned and governed cooperative
Cooperative
A cooperative is a business organization owned and operated by a group of individuals for their mutual benefit...
venture of nonprofit organizations committed to effective risk management and insurance cost containment.
Rather than having its business regulated by the California Department of Insurance
California Department of Insurance
The California Department of Insurance , established in 1868, is the agency charged with overseeing the regulation of insurance regulations, enforcing statutes mandating consumer protections, educating consumers, and fostering the stability of insurance markets in the state of California...
, NonProfits' United has an unusual situation in that it operates under provisions of the California Corporations Code, which was amended to allow private nonprofit organizations to create insurance pools.
NonProfits United provides funding for innovative projects, and offers incentive and grant programs to reward members and their employees for their commitment to safety.
History
NonProfits' United was established in 1988 as a vehicle insurance pool, initially conceived for the sole purpose of supporting nonprofit paratransitParatransit
Paratransit is an alternative mode of flexible passenger transportation that does not follow fixed routes or schedules. Typically mini-buses are used to provide paratransit service, but also share taxis and jitneys are important providers....
providers in California. Due to rising insurance costs in the mid-1980s, many nonprofit transportation agencies were shutting down, causing a critical shortage of paratransit services in California. In some cases, nonprofit agencies could not get any vehicle insurance coverage from traditional commercial insurance carriers, and when they could find coverage, premiums were often inflated by two hundred percent or more.
Because of this crisis, a group of nonprofit executive directors led by Bill Durant, in concert with the California Association for Coordinated Transportation (CalACT), looked at the feasibility of forming a self-insurance pool. Peter Steinert, a California Department of Transportation
California Department of Transportation
The California Department of Transportation is a government department in the U.S. state of California. Its mission is to improve mobility across the state. It manages the state highway system and is actively involved with public transportation systems throughout the state...
employee, submitted a successful grant proposal to pay for the feasibility study, and a steering committee was formed to hire and work with consultants. The original CalACT steering committee that started NonProfits' United included Jeffrey Webster, Ron Servis, John Q. Pounds, Frank Baker, Peter Steinert, Ann Fleming, Robert Garcia, June Gilmore, Dennis Studebaker, Bill Brashears, and Bill Durant.
Over seventy founding member organizations --all nonprofit agencies, with a majority focused on transportation-- were assembled to form the Paratransit Insurance Corporation in 1988, becoming the first nonprofit insurance pool in California. During its first decade, the membership of Paratransit Insurance widened to include most sectors of the nonprofit community, prompting the name change to NonProfits’ United in 1998.
Vehicle Insurance Pool
The Vehicle Insurance Pool, now comprising over three hundred member organizations, saw its assets grow to $12.5 million during its first eighteen years of operation. Any California nonprofit that owns or leases at least one vehicle can apply for membership, but membership is only accorded to organizations whose losses and risk managementRisk management
Risk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities...
practices indicate a responsible, successful approach to loss control.
Among the successful programs initiated by the Vehicle Insurance Pool is a rear crossview mirror purchase program. By evaluating losses incurred by member agencies, it was discovered that many claims arose from accidents that occurred while drivers were backing up their vehicles. Installing rear crossview mirrors on certain types of vehicles has reduced such accidents by as much as 85 percent.
Workers’ Compensation Group
The Workers' Compensation Group provides insurance coverage for nonprofit health and human services agencies.In 2002, when workers' compensation premiums were doubling annually for many nonprofit agencies in California, the crisis prompted NonProfits’ United to explore the feasibility of offering workers’ compensation insurance programs. Using the same model as the Vehicle Insurance Pool, the Workers' Compensation Group was established as an alternative insurance provider for the numerous nonprofits strained financially by rapidly increasing workers’ compensation insurance premiums.
With three core members, the NonProfits’ United Workers’ Comp Group took root in December, 2004. Within a year, the Workers' Compensation Group comprised over forty members.
The Worker's Compensation Group empowers member organizations by educating them about the advantages and responsibilities of self-insuring. Advantages for members of the Workers' Compensation Group include savings of as much as thirty percent on premiums.
External links
- NonProfitsUnited.com - Corporate website
- NonProfitsUnited.com - 'The Drive to Succeed', Laura Sullivan, Risk ManagementRisk managementRisk management is the identification, assessment, and prioritization of risks followed by coordinated and economical application of resources to minimize, monitor, and control the probability and/or impact of unfortunate events or to maximize the realization of opportunities...
(December, 1999)