Why do I need more than one type of insurance?

Smart land trusts typically purchase multiple types of insurance coverage and will consider how the various insurance coverages fit together when selecting the right coverage package. Terrafirma, an insurance provider the Land Trust Alliance formed in 2011 to help land trusts, fills in many of the gaps in coverage for these other insurance products.

• General liability insurance is required in order to be eligible for Terrafirma coverage. It covers claims alleging bodily injury or property damage.

• Directors and officers (D&O) insurance covers claims alleging wrongful management decisions by the land trust board, volunteers and staff. Unpaid directors of land trusts may have some coverage available under their individual homeowners or personal liability umbrella policies, but these do not offer any defense for the land trust where the board member volunteers.

• Title insurance can compensate the land trust if the actual title to (ownership of) the conservation easement or land they own is challenged or if there is a dispute about the legal description of the property, provided that it is not excluded by the survey exception.

So what gap does Terrafirma fill? It insures the costs of upholding conservation easements and fee lands held for conservation purposes when they have been violated or are under legal attack, and to provide information on risk management to those land trusts. In essense, Terrafirma helps demonstrate land trusts' commitment to take seriously their responsibility to ensure the permanence of their conservation work.

Still have questions? Please let me know.