Update on Land Trust Insurance Issues

Land Trust Alliance Notice to Member Land Trusts (June 8, 2006)

Everyone loves to hate their insurance provider, but the fact is that carrying proper insurance is a necessary part of our type of business. People slip and fall on trails, computers are fried in thunderstorms, and directors can be sued at any time. Land Trust Alliance continues to work to provide affordable insurance options for members.

Fortunately, there has been no increase in the base insurance rates under our Conserve-A-Nation Program, provided by our insurance broker Alliant Insurance Services, Inc. in more than 4 years (if your rates went up at all, it was because the amount of your insured land increased). Not long ago, we were able to secure a reduced rate for land trusts holding a minimum of land. For many land trusts, especially the smaller ones, the insurance discounts they enjoy as an Land Trust Alliance member can amount to over $600, more than offsetting their annual Land Trust Alliance dues.

Equine Event Insurance

Over the past 6 months, Land Trust Alliance has received isolated complaints from its members regarding their inability to acquire affordable insurance rates for equestrian-related events, that is, special one-day events or fundraisers involving riding. Their insurance had either been discontinued or remained available only at a considerably higher cost than before. (Apparently insurance rates have skyrocketed for all such equestrian events, reportedly forcing some public stables to close.) For example, one land trust in California could not afford to pay an insurance fee in the vicinity of several thousand dollars for a one-time fundraiser event expected to raise only $5,000. Other land trusts from time to time offer access to local riding clubs, as a way of building public support, and these events also needed coverage.

Land Trust Alliance looked into the problem and researched alternative insurance providers. For ease of administration and other reasons, it made sense to keep this coverage with our current carrier if that could be done at a fair price. We are happy to report that in May we received an agreement with Alliant Insurance Services, Inc. to renew its coverage of such equine events. Effective immediately, Alliant Insurance Services, Inc. will insure equestrian-related special events held by land trusts by attaching a rider to the land trust’s insurance package either free or at a nominal cost (such as $100-$150). This type of rider will be available for special events such as trail rides, picnics, fundraisers and educational events where equestrian-related activities are involved. In some cases the event may be covered under the standard Conserve-A-Nation policy, at no extra cost. This agreement will allow our members to continue to perform important educational and fund-raising events on their properties that they feared they would no longer be able to afford to perform. Do contact Alliant Insurance Services, Inc. in advance of such events.

Insurance for Urban Land Trusts

Also, recently there have been isolated concerns and discussions on the list serve as to whether or not there has been a retrenchment on providing urban land trusts access to the Conserve-A-Nation insurance program. These concerns were prompted by The Chubb Group’s (the holder of Conserve-A-Nation insurance policies) initial rejection of insurance last fall for three TPL-sponsored urban gardens in the New York City area. Chubb had initially shown great reluctance to insure these three gardens due to their location in and a perceived high-risk potential for insurance claims. Land Trust Alliance has to date received no other reports of any other urban land being rejected for coverage under this program.

Upon hearing of the NYC problem with coverage, Land Trust Alliance looked into the issue and received the following assurance from Alliant Insurance Services, Inc. that there had been no change in their willingness to cover urban lands conserved by land trusts:

Please be advised that the Land Trust Alliance insurance program underwriting guidelines have not been altered or revised. Urban Land trusts that are currently in the program will continue to be afforded the program rates. As I am sure you are aware rates are a function of loss experience. The positive program loss experience has not only prevented any rate increases but actually created a rate decrease two years ago. It should be noted that exposures and or activities not contemplated in the guidelines are underwritten on an individual basis. Alliant Insurance Services, Inc. is committed to providing a cost-effective comprehensive insurance program for your membership. John R. Muha II

In addition to this assurance, Land Trust Alliance is pleased to announce that it has come to an understanding with Alliant Insurance Services, Inc. to provide the needed insurance coverage to the three New York City urban land trusts that prompted the concerns.

Other “High-Risk” Activities

Land Trust Alliance is not able to investigate every individual insurance problem that may come up among its 1,100 members, but when a new problem concerns a lot of our members, we do our best to look into it. Your first step should always be try to resolve any insurance coverage question directly with Alliant Insurance Services, Inc., but do let us know are unable to reach a reasonable solution. We must all work together both to secure affordable coverage for land trusts, and to carefully manage risks so that new claims don’t force up the rates for everyone. Land trusts have had a pretty good claims record so far, and it’s in everyone’s interest to keep it that way.

If there is a recurring problem, we want to know about it (contact membership@lta.org), since we do review such issues with Alliant Insurance Services, Inc. semi-annually. We are aware of continuing difficulties some land trusts are having in securing coverage for events deemed by the carrier Chubb to be statistically high-risk or uninsurable activities. In the past these have included hunting, caving, swimming from docks, climbing, etc. We haven’t been able to solve these specific types of problems on a national level, although some groups are finding alternative solutions at the local level, where the insurance broker in your community may have more experience with the activity in question.

For information about the Conserve-A-Nation® Program, please visit the website, contact Anna Hill with Alliant Insurance Services, Inc. Inc. at 800-298-7373 x131 or via e-mail at ahill@alliantinsurance.com.

For more information about becoming a land trust member or about your benefits as a member, please contact Bart Zerfas, Land Trust Alliance’s Membership Coordinator at either (202) 638-4725 x331 or membership@lta.org. We will keep you posted on other developments on land trust insurance.

updated 10/16/2007