FAQ’s

General Questions

Q: Why choose Colorado Nonprofit Insurance Agency for our organization’s insurance coverage?
A: Our agency is devoted exclusively to serving the nonprofit community and members of the Colorado Nonprofit Association. Selling insurance to nonprofits is ALL WE DO.

Q: Who is Colorado Nonprofit Association?
A: They are a statewide membership organization for nonprofits with a 501(c)3 designation. Through training, support, lobbying and leadership they help their members become more efficient and effective by fostering an environment that supports nonprofits and recognizes the benefits nonprofits provide to our communities. Colorado Nonprofit Association raises awareness about the important role nonprofits play in improving our state.

Q: Who is eligible to purchase insurance from Colorado Nonprofit Insurance Agency?
A:All 501C3 organziations are eligible to purchase insurance from Colorado Nonprofit Insurance Agency.

Q: How long has Colorado Nonprofit Insurance Agency been meeting nonprofit insurance needs?
A: Colorado Nonprofit Insurance Agency, Inc. was established in 1989 as a benefit to Colorado Nonprofit Association members., incorporated within the State of Colorado and known as CANPO Administrative Services, Inc. (CANPO ASI) In September of 2005 the name was changed to Colorado Nonprofit Insurance Agency, Inc.

Q: How is Colorado Nonprofit Insurance Agency governed?
A: A seven member volunteer Board of Directors, appointed by the Colorado Nonprofit Association, governs the agency. The board members are all active in the Colorado nonprofit and business communities.

Q: Does Colorado Nonprofit Insurance Agency make a profit?
A: The agency is structured as a for-profit company and is licensed as a full-service insurance agency. Colorado Nonprofit Insurance Agency does collect revenue from insurance carriers. As Colorado Nonprofit Insurance Agency is a wholly owned subsidiary of the Association, the net revenues of Colorado Nonprofit Insurance Agency are used to support the work of Colorado Nonprofit Association.

Q: Does Colorado Nonprofit Insurance Agency offer any “exclusive” insurance programs?
A: We have an exclusive arrangement with the Alliance of Nonprofits for Insurance (ANI-RRG), a risk retention group, and are the ONLY agent licensed to carry their insurance products in the state of Colorado. ANI-RRG writes General Liability, Property, Volunteer Accident, Improper Sexual Conduct and Social Service Professional coverage. And, while not exclusive, our agency has access to other insurance markets that cater to nonprofit insurance risks.

Q: What insurance programs can Colorado Nonprofit Insurance Agency offer my organization?
A: We are a full-service insurance agency offering a wide range of products for your nonprofit organization including liability, property, Workers’ Compensation and employee benefits.

Q: How do we shop for insurance?
A: Members of Colorado Nonprofit Association are eligible for a free, no-obligation quote. Contact Colorado Nonprofit Insurance Agency to tell us about the mission of your organization. We will ask you to complete insurance applications giving us the information necessary to get a quote. Our insurance consultants are experts in nonprofit insurance and will help you determine the appropriate coverage for your unique organization.

Q: What types of insurance must nonprofits legally have in Colorado?
A: All nonprofits that hire employees (including part-time) must purchase workers’ compensation coverage. Our agency can obtain a workers’ compensation policy for you. Unemployment compensation insurance is not required, but if your organization does not purchase the insurance from the state of Colorado, you become a direct reimburser, meaning that claims filed will be paid by the State and those moneys must be reimbursed to them. If you have more than 20 employees we would suggest an Unemployment Trust as an alternative to paying the state directly. This type of trust is available through Colorado Nonprofit Insurance Agency


Benefits

Q: Can an employee continue their insurance benefits after employment has been terminated?
A: Yes, as long as the employees’ previous employer has group coverage. The rules vary according to the size of the employer group. Colorado Continuation Coverage applies to employees of any employer group policy, except a single self-employed group of one. This continuation coverage is available if an employee has been covered under the employer’s plan for six consecutive months. If covered less than six months but more than three months, conversion is available. COBRA applies to firms who have 20 or more employees on more than 50% of their typical business days in the previous calendar year. COBRA is available regardless of length of employment.

Q: Do we get a group discount or lower rate by purchasing health insurance through Colorado Nonprofit Association/Colorado Nonprofit Insurance Agency?
A: The Colorado Division of Insurance does not allow associations to offer a “discount” on health insurance. We get the same competitive rate as other agents. Along with these competitive rates, we work for Colorado Nonprofit Association and the nonprofit sector so we know nonprofits and care about your mission. In addition, your organization can place all of its insurance needs in one place.

Q: I am a “Business Group of One”. Can I purchase health insurance from Colorado Nonprofit Insurance Agency?
A: Yes, “Business Groups of One” are eligible to participate in health insurance (and other programs). Special rules do apply. Please call Colorado Nonprofit Insurance Agency for more information.

Q: Do dental plans have a maximum benefit amount?
A: Dental HMO plans generally do not have a maximum amount. A specified co-pay is established for each procedure. However, indemnity dental plans will specify the maximum amount the carrier will pay during the calendar year. As the cost of a dental procedure increases, it’s an important item to consider when purchasing coverage.

Q: If I leave my employment, will I lose my life and disability coverage?
A: Disability income plans are valid while you are employed. If you change jobs, usually you are unable to change that plan to an individual policy. Life insurance policies normally have a conversion privilege. The insurance carrier will allow you to keep the policy by paying the premium requested. The premium is normally higher than the amount charged to the group. If your life insurance policy is portable, that means you may take it with you at the same coverage and premium.

Q: Can I get disability income coverage for a small group of employees?
A: Most insurance companies will only offer guaranteed issue policies (no medical questions asked) to groups of 10 or more employees. Policies may be available to groups of 2 to 10 employees. Frequently, some form of medical screening is required. Contact Colorado Nonprofit Insurance Agency to find out if your small group would qualify.


Workers’ Compensation

Q: Are non-profit organizations required to have a Workers’ Compensation policy?
A: All public and private employers in Colorado must provide Workers’ Compensation coverage for their employees if one or more full or part-time persons are employed.

Q: How can we protect volunteers if they are injured while volunteering for the organization?
A: A Volunteer Accident Insurance policy is available to members of the Colorado Nonprofit Association. This policy provides limited medical expense coverage if a volunteer is injured as a result of a covered accident.

Q: What is an audit?
A: When a new workers’ compensation policy is issued, estimated numbers for payroll are used. The carrier is allowed to charge premium based on the actual numbers for that time period. At the end of your policy year, the carrier will send you a form asking for payroll numbers per class of employee during the past year. Those numbers are compared with the numbers used on your policy. If the payroll is lower, you will receive a refund and vice-versa.

Q: Does my small organization need a safety committee?
A: Every organization should establish a safety committee. If you are a small organization, you may want to select a safety coordinator rather than a committee. That person is responsible for knowing what to do if someone is injured on the job. Also, the safety coordinator would understand the basic tenets of safety. Regular meetings would be held to teach employees how to keep a safe workplace. Many small organizations incorporate this information into the regular staff meetings.

Q: Does my insurance company determine my Cost Containment Certification credit?
A: The State of Colorado manages the Cost Containment Certification program. All material is submitted to the State and they tell the insurance carrier what credit or discount to apply to your policy premium.

Q: How do I get a discount on my Workers’ Compensation premium?
A: If you select a physician or provider from the network approved by your insurance company and agree that your employees will use this provider when injured on the job, you will get a 2.5% premium discount. Members of Colorado Nonprofit Association may receive a premium discount by enrolling through their association program. Colorado Nonprofit Insurance Agency is the designated broker for this program.


Liability

Q: Why do I need Liability Insurance?
A: Liability may be defined as “any legally enforceable obligation”. Any time we operate an organization of any sort, we subject ourselves to some form of liability. There are many types of liability insurance policies available. These include general liability, professional liability, directors and officers’ liability and automobile liability.

Q: Why do we need Directors’ and Officers’ liability insurance?
A: Anyone who serves as a member of a Board of Directors for a nonprofit organization can be sued for making a decision or failing to make a decision as a member of the Board. Although Federal and State legislation is in place to protect board members against settlements, a board member may be sued. The policy will provide a defense against lawsuits presented even though no payments may be made to a third party.

Q: Does my organization need to purchase Employment Practices Liability?
A: This coverage is included in a nonprofit directors’ and officers’ liability policy. It is designed to protect against claims presented by an employee. However, the policy does not cover criminal acts by a board member or an employee.

Q: What is Alliance of Nonprofits for Insurance, Risk Retention Group?
A: ANI-RRG is an insurance company domiciled in Vermont. It is a member-owned nonprofit public benefit corporation that serves 501(c)(3) tax-exempt nonprofit organizations by providing a stable source of reasonably priced liability insurance.


Unemployment Compensation

Q: Do I have to purchase unemployment insurance for our employees?
A: Nonprofit organizations are not required to purchase unemployment insurance through the State of Colorado. However, they are required to register with the Unemployment Division if you have more than three employees. If an employee files a claim the organization will be asked to reimburse the State of Colorado for payments made.

Q: What alternatives are available to cover the cost of unemployment compensation claims?
A: Electing to reimburse the State for claims approved and paid by them could present a financial risk to the organization. Your nonprofit organization could join a Trust. You will make regular contributions to the Trust to build your reserves to make possible claim payments. Additional services such as assistance with handling claims and investment of reserve funds will be provided. The reserve fund belongs to your organization and regular contributions made to the Trust are based on your claim experience.

Q: Will my small organization qualify for participation in a Trust?
A: Any organization with 20 or more employees may qualify. Because your money is used to pay claims presented, it is too risky for small nonprofit groups.

Q: May I join a Trust at any time during the year?
A: The State of Colorado allows a company to withdraw from the Unemployment Compensation system as of the first of any year. Therefore, you would start your participation in a Trust on that date. If you are a direct reimburser, you may join a Trust at any time.