Unemployment Risk Solutions

Federal law allows 501(c)(3) nonprofits to opt out of paying unemployment taxes into their state unemployment insurance (SUI) pool. Instead of paying SUI tax, these employers can reimburse their state for unemployment benefits paid to their former employees. For many, this reimbursing option yields annual cost savings in excess of 20% when compared to the tax-paying alternative.

Available Coverage

We offer several solutions to 501(c)(3) nonprofits that have at least $1 million in annual payroll that opt out of the state unemployment tax system. These solutions combine professional unemployment claims management and Great American Insurance Group coverage to meet the specific needs of each client.

  1. First Dollar Insurance: A first-of-kind insurance product that attaches immediately at the first dollar of unemployment benefit charges. This option provides peace of mind and the greatest degree of budgetary certainty. Options include a customized limit or coverage for all benefit charges during the policy term.
  2. Customized Stop-Loss Insurance: To meet the specific needs and risk tolerance of certain employers, this coverage option attaches in excess of an agreed-upon self-insured retention. Options include a customized limit or coverage for all benefit charges during the policy term in excess of the agreed-upon self-insured retention.
  3. 501(c) Agencies Trust: This program is exclusively offered to 501(c)(3) nonprofits. This grantor trust group of self-insured organizations offers reasonable reserve requirements, transparent accounting, superior customer service and a non-customizable stop-loss protection program. Visit 501(c) Agencies Trust  for more information.

Interested in applying? Please complete the Unemployment Insurance Application.

Services We Offer

All coverages include a suite of services designed to mitigate risk and minimize unemployment expenses.
  • Professional unemployment claims management
  • Unemployment hearing representation
  • Unemployment cost management education and training
  • State reimbursement
  • Transparent billing and accounting

For more information, contact your state’s marketing representative or the Unemployment Risk Solutions team.