State unemployment self insurance (reimbursing) risks to 501(c)3 nonprofits, governmental, and tribal entities.

August 31, 2020

State unemployment self insurance (reimbursing) risks to 501(c)3 nonprofits, governmental, and tribal entities.

*

If your organization currently self insures (reimburses) state unemployment insurance (SUI) costs, you could be exposing much needed dollars to:

*

Unlimited Liability

*

Several circumstances including loss of funding, restructuring or reorganization, state budget impasses, etc. can lead to layoffs. As a self-insured employer your organization is responsible to pay back your state unemployment agency for 100% of unemployment claims paid out to your former employees.

*

Claim Overpayments

*

As a result of sequestration, funding for SUI administration has been reduced. Employers can anticipate longer duration to process claims, issue
decisions and schedule hearings. The biggest concern is the potential increase in claim overpayments.

*

Unknown Cost

*

Self-insured employers are normally billed on a monthly or quarterly basis for the unemployment claims paid to their former employees. These bills can fluctuate greatly from one bill to the next, making budgeting a difficult task for this cost.

*

How We Help

*

First Nonprofit (FNP) offers group and individual unemployment programs that minimize risk, either by first dollar or stop loss coverage, provide a fixed annual/quarterly cost and remove the uncertainty of your exposure. Customers also receive claims administration, which includes claims auditing to prevent overpayments. While the benefits of each of our programs differ, program benefits include:

*

  • Competitive, individual stop loss insurance options (lower attachments)
  • Fixed annual cost
  • No shared risk
  • No additional cost for state mandated surety bonds
  • Experience credit / refund options
    Interest-bearing reserve account

*

How does stop loss insurance work?

*

Excessively high claims do happen. Perhaps you lose a grant and
need to lay off several people? Our stop loss insurance limits your
liability when unexpected events such as this happen. The attachment point, point at which this stop loss insurance coverage applies, is based on your organization’s individual profile.

Ready to chat?
Get in touch today to request a no-obligation savings evaluation.

Testimonials

NYCON members who use First Nonprofit’s programs enjoy enduring savings and improved efficiency. Our association knows that success, because from the beginning, we achieved the same great benefits. Great savings, seamless technology, and responsive service. NYCON highly recommends First Nonprofit’s remarkable unemployment solutions.

New York Council of Nonprofits, Albany, NY

It has been our sincere pleasure to maintain a strong, vibrant business partnership with First Nonprofit. We greatly admire their strong industry knowledge, technical expertise, constant professionalism, knowledgeable and dedicated staff. They are always extremely responsive, personable and provide us with the necessary guidance and recommendations on a numerous variety of employment scenarios. We are impressed with the accuracy of their employment decisions, integrity of their employees and efficiency of their claim handling. We greatly respect and value the consistent, impressive cost savings from the utilization of their outstanding services.

 

Thresholds, Chicago, IL

Because INCS advocates for the operating conditions that allow charter public schools to provide high quality public education, partnering with First Nonprofit was an easy decision. First Nonprofit’s unemployment programs provide our member schools two operating elements crucial to their ability to provide high quality public education: savings and budget certainty. Capable, committed teachers are the key to student success. By participating in the unemployment insurance savings plan, charter public schools gain peace of mind and are able to invest more money in their teachers.

Illinois Network of Charter Schools

Throughout our membership in the Unemployment Savings Program, First Nonprofit understood our demands, community dynamics, and the importance of seamless services; that allowed us to serve our constituents better.

Hugh Parry, Retired President of Prevent Blindness America