History of NPIA, Inc.
NPIA's Founder, Mike Freundschuh
NPIA, Inc. dba: Nonprofits’ Insurance Agency (NPIA) was created and founded by Mike Freundschuh in 1993 as a Minnesota Independent Insurance Agency with a primary focus of providing commercial lines insurance coverages to Minnesota 501(c)3 nonprofit organizations. Mike Freundschuh was President & CEO of NPIA until March 2022 and serves as the Board Chair today.
During 1993-1995, Mike developed the concept and successfully created the Minnesota Nonprofit Employers Workers’ Compensation Fund (MNEWCF) which operated as a self-insured workers’ compensation group of 5 MN 501(c)3 nonprofit organizations. This self-insured workers’ compensation group was organized and operated under the authority of MN Stat. 79A, with oversight provided by the Minnesota Department of Commerce and began operations in July 1995. NPIA was then a primary producer and agency of the group; providing marketing, underwriting, and support with the assistance of a third-party administrator to handle claims, accounting, loss control, and other compliance services. Both NPIA and the third-party administrator were contracted by the MNEWCF to provide such services. Along with continuing to develop and expansion of the MNEWCF, Mike was also appointed by several insurance carriers and Managing General Agents to produce property & liability types of commercial insurance to nonprofit organizations within Minnesota.
In 2000, due to the discovery of improper acts committed by the former contracted third-party administrator of the MNEWCF, and the MNEWCF Board of Directors seeking the assistance of additional oversight of new potential third-party administrators, NPIA was formally appointed as the “Fund Administrator” of the MNEWCF.
As the growth of the MNEWCF and independent agency continued, NPIA became formally incorporated as an IRS subchapter “S” corporation in July 2005.
With the assistance of the MNEWCF Board of Directors, Mike Freundschuh lobbied the Minnesota Legislature in 2009 to allow for the creation of the Nonprofit Insurance Trust (NIT), which would create a Minnesota municipal commercial insurance trust established for Minnesota nonprofit organizations under MN Stat. 471.98 and allow the application as an IRS 501(c)3(n) corporation itself. The successful passage of this legislation occurred during the 2009 legislative session and permitted for the creation of the Nonprofit Insurance Trust, which began operations in August 2010, at which point the MNEWCF dissolved itself and transferred all assets and liabilities to the new program. At this point, NPIA was appointed as the “Trust Administrator” and assisted the NIT Board of Directors in the creation of its’ first insurance “pool” consisting of the previous members of the MNEWCF and was named the Nonprofit Insurance Trust Workers’ Compensation Pool. Shortly thereafter, NPIA assisted with creation of the second NIT pool which was organized to provide property & liability coverage to member organizations. The second pool was named the Nonprofit Insurance Trust Property & Liability Pool and commenced operations in June 2011. Not only did NPIA continue as the Trust Administrator for both pools, NPIA negotiated terms for two different third-party administrators to provide services for each respective pool.
After careful consideration and research, the NIT Board of Directors requested NPIA become the Third-Party Administrator and Trust Administrator due to issues encountered and conflicts of interest with the two Third Party Administrators who had been providing TPA services to the two pools of the Nonprofit Insurance Trust. This would allow better coordination between programs, allow for more stringent claims and loss control oversight, and save the NIT several millions of dollars in expenses in years to come. There was a unanimous vote to terminate the contracts of the two previous third-party administrators and allow NPIA to serve the NIT program as both the Trust Administrator & Third-Party Administrator of the program. NPIA became licensed by the Minnesota Department of Commerce as a TPA in 2013 and formally took-over all TPA responsibilities on April 1, 2014.
Having the framework and foundation in place of NPIA acting as a Minnesota Independent Agency and Third-Party Administrator, NPIA provided service levels to the members of NIT that consistently exceeded expectations. Both NIT pools continued to grow at a steady pace and additional staff was necessary at NPIA, and today the company employs 15 full-time people.
In 2022, Mike stepped down from the President role but continues with NPIA as Board Chair. With several decades’ worth of experience, he is available to assist as necessary when unusual items arise, but is not actively involved in the day-to-day operations of NPIA. He has turned control of the company over to his two sons, who through several years of experience and mentoring are well suited to guide the company long into the future.