NIA Adds Reimbursement Coverage for Nonprofit Employee Auto Claims in California

Nonprofits Insurance Alliance (NIA), a nationwide insurer exclusively serving 501(c)(3) nonprofits, has introduced auto coverage that reimburses California 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.

California requires an employer 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.

The Non-owned Auto Physical Damage Reimbursement (Employee Vehicles) coverage applies to nonprofits that are required to reimburse their employees for losses related to auto physical damage claims. The NONPROFITS OWN coverage will be added to the business auto liability coverage form for NIA’s California members.

NIA offers insurance coverages for the operational needs of 501(c)(3) organizations. NIA’s NONPROFITS OWN full spectrum of property and casualty coverages are created by nonprofits, for nonprofits.

Founded in 1989 in Santa Cruz, Calif., the NIA group brand is comprised of Alliance Member Services (AMS) and three 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.