TerraBites
A short newsletter of bite-size ideas to chew on for Terrafirma owner-member land trusts, released March, May, July, and September.
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No one knew if Terrafirma would succeed when it issued its first policies on March 1, 2013. Now, almost ten years later, Terrafirma has helped land trusts defend perpetual land conservation across America. During these past ten years, Terrafirma:
- insured over 10.2 million acres, an increase of almost 4 million acres from 2013;
- grew to 545 land trusts member from 48 U.S. states;
- covered 36,000+ parcels, almost doubling the number of parcels it originally insured;
- paid over $5.6 million to help land trusts uphold lasting conservation on easements, trails, preserves and owned land on over 200 covered claims;
- provided over $3.1 million in premium discounts to members;
- achieved a 98% membership retention rate;
- helped establish favorable case law across the United States; and
- remained 100% owned and governed by its land trust members.
Terrafirma would have never happened without the dedicated and tireless efforts of many. The greatest thanks go to Terrafirma’s member land trusts as they are the ones that have made Terrafirma successful. Terrafirma wouldn’t be what it is without their continued commitment.
With a solid footing from ten years of Terrafirma, land trusts can continue to steadfastly tackle the biggest challenges of the day.
With gratitude and thanks,
Tom Kester
Operations Manager and Secretary
Alliance Risk Management Services LLC
Manager for Terrafirma Risk Retention Group LLC
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Happy New Year! If you have not already started your 2023 application, now is the time to jump online and get it done! Also please remember to file all of your 2022 policy year claims now. Here are the key points to remember:
- The 2023 annual membership confirmation is currently open and goes through Feb. 1.
- File your policy year 2022 claims by April 30, 2023 at terrafirma.org to avoid risking loss of coverage of the claim.
- The policy year is not the same as the calendar year — it is March 1 to March 1, plus a 61-day grace period that ends April 30. All claims must be filed within the policy year in which the problem first started or coverage for the claim is jeopardized.
- Filing claims does not affect your premium price! If in doubt, please file a claim or contact us at help@terrafirma.org.
- Entering a dispute in the Challenges section of your application is not an official claim.
Renew now! Terrafirma does not send invoices to members about renewing coverage. Members must renew coverage through the Terrafirma website. Please notify your accounts payable to update their vendor list and change the Terrafirma address to use the new P.O. Box address:
Terrafirma RRG LLC
P.O. Box 1330
Williston, VT 05495-1330
We’re here to help! If you have any questions, please let us know.
Thank you,
Tom Kester
Operations Manager and Secretary
Alliance Risk Management Services LLC
Manager for Terrafirma Risk Retention Group LLC
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It is no secret that going to court is expensive and time consuming. Land trusts succeed when they are prepared to meet the documentation, money and people costs of litigation. Preventative spending to head off disputes early and strong resolution skills for differences with landowners and neighbors can reduce the risk of lawsuits. Eventually, however, upholding lasting conservation may force your land trust into court. Great Land Trust in Alaska distilled its insights from a four-year legal battle with a trespasser who cut over 350 trees along with the dumping, spreading and compacting 28 dump truck loads of gravel. This gravel and associated trespassing crushed the forest vegetation, creating dead zones. Great Land Trust’s case management points are essential reading for every land trust!
Thank you,
Tom Kester
Operations Manager and Secretary
Alliance Risk Management Services LLC
Manager for Terrafirma Risk Retention Group LLC
PS: Applications for policy year 2023 open on Dec. 1! Please notify your accounts payable to update their vendor list and change the Terrafirma address to use the new P.O. Box address:
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Terrafirma RRG LLC
P.O. Box 1330
Williston, VT 05495-1330
Terrafirma’s annual membership confirmation opens on Dec. 1. Here are some important points to make it easier for you:
1. NEW changed P.O. Box address to mail premium payments. Terrafirma has a new P.O. Box and will post the address as part of the application. Please use the new P.O. Box address for the 2023 premium payment to Terrafirma. Please notify your accounts payable to update their vendor list and change the Terrafirma address to use the new P.O. Box address.
2. Terrafirma’s premium increased from $63 per insured parcel to $67 per insured parcel. As highlighted in the May 2022 Terrabite, the Members Committee voted to increase Terrafirma’s premium from $63 per insured parcel to $67 per insured parcel effective for policy year 2023. The premium for land trust back-up holders or third-party enforcers increased from $31.50 per insured parcel to $67 per insured parcel. Current premium discounts and coverage limits remain the same.
3. Risk management discount opportunities are still available. To receive the Terrafirma risk management discount on your 2023 policy, one member of your land trust will need to attend an approved risk management course. An approved risk management course must be completed every year to qualify for the risk management discount for the coming policy year and discounts cannot be retroactively applied. Here are some upcoming risk management events:
If you have any questions, please let me know. You can email me directly or call 802-249-7147.
Thank you,
Tom Kester
Operations Manager and Secretary
Alliance Risk Management Services LLC
Manager for Terrafirma Risk Retention Group LLC
Over the past year, Terrafirma has seen an increase in boundary-related claims like encroachment, trespass and adverse possession. Two recurring themes are that the land trust suspected the violation was occurring for years but had not verified the property boundary line or thought the nominal trespass did not merit filing a Terrafirma claim. Many of these claims, unfortunately, were denied coverage due to being untimely filed. Some of the problems could have been stopped or abated earlier if the land trust identified the boundary lines and acted promptly.
Terrafirma offers practical considerations for land trusts during monitoring visits to help you identify boundary issues.
Please contact Leslie Ratley-Beach if you have questions about boundary-related matters.
Sincerely,
Tom Kester
Operations Manager and Secretary
Alliance Risk Management Services LLC
Manager for Terrafirma Risk Retention Group LLC
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“...I am considering the option of suing the Land Trust for an injunction to remove those trees as a nuisance, interfering with my view. If successful, I would set a precedent and if unsuccessful, I will cost the [Land Trust] a great deal.”
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That was part of the response a land trust received after informing a neighbor they were prohibited from cutting trees on the land trust’s preserve. Neighbors like this think only of their view. The chainsaws (or bulldozers) are not stopped by the deed description. Luckily for this land trust they are a Terrafirma member and had insured their preserves. Terrafirma covered this claim helping the land trust to prevail in court and recover costs and damages.
Unfortunately, the disputes Terrafirma sees demonstrate that preserves face serious expensive legal issues from deliberate tree cutting, bulldozing and the construction of various structures by neighbors – and at relatively the same rates as conservation easements.
About 61% of Terrafirma’s member land trusts insure both easements and preserves. If your land trust has not yet insured its preserves (or easements) with Terrafirma please consider doing so for 2023. I hope you join the crowd in the risk pool. Terrafirma can help ensure that your preserves are preserved.
Please contact me (tkester[at]lta.org) if you are interested in learning how to insure your land trust’s preserves. You might be surprised at the number of parcels that can be counted as one preserve!
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Tom Kester
Operations Manager
Alliance Risk Management Services LLC
I hope you are well and enjoying spring. I wanted to give all Terrafirma members ample notice that after five full years of stable premium prices and also retaining all the original discounts, Terrafirma must increase premium for the next policy year in 2023. This is only the second premium increase in Terrafirma’s ten years of operation.
Like everyone, inflation has increased all of Terrafirma’s costs – some of them dramatically. Attorney costs on claims increased 15% for example, and investment market decreases negatively affected additional income that would otherwise bridge expense increases.
Terrafirma’s elected Members Committee wants to ensure that Terrafirma can pay the costs for every covered claim, provide members with access to highly qualified attorneys nationwide, and provide sufficient management of Terrafirma to meet regulatory expectations.
At the recent Terrafirma Annual Meeting, the Members Committee voted to increase Terrafirma’s premium from $63 per insured parcel to $67 per insured parcel effective for policy year 2023 (next year). Current premium discounts and coverage limits remain the same.
We understand that any premium increase is not welcome news to members. Both Terrafirma and ARMS work very hard to keep costs as low as possible. The two premium increases in Terrafirma’s 10-year history represents an annualized 1.1% increase from the original 2013 premium. All the discounts and original policy limits remain the same.
I am happy to answer any questions. Please write to me at tkester[at]lta.org. Thank you for your dedication to lasting conservation!
Sincerely,
Tom Kester
Operations Manager
Alliance Risk Management Services LLC
The 545 land trust owner-members of Terrafirma mark some notable events this month. They now collectively insure over 10,212,198 acres. That is 38% more than when the Alliance started Terrafirma in 2013, and one and a half times the size of Hawaii! Terrafirma has also paid out $4.5 million for covered claims, handled over 1,500 claims and insured over 36,000 conservation properties. Terrafirma has almost $12 million in total assets and is fully compliant with regulations.
February 22, 2022 also marks the 40th anniversary of the Land Trust Alliance. In honor of all of these collective achievements, the Alliance will host two complimentary webinars as part of Member Celebration Week for land trust members and Affiliates — Transforming Your Organizational Culture on Feb. 23 and Staying Connected While Working Remotely on Feb. 24.
Thank you to all the owner-members of Terrafirma for helping us to grow stronger each year! Each land trust is a critical part of this formidable, shared conservation defense liability service. We appreciate your commitment to lasting conservation.
Hannah
Hannah Flake
Conservation Defense Specialist
ALLIANCE RISK MANAGEMENT SERVICES LLC
P.S. Stay on top of any potential claims you have lingering from the 2021 policy period by filing a claim before the end of the grace period on April 30 - the sooner the better. If you have questions about filing a claim or anything else, please let us know.
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Terrafirma is seeing an increase in extinguishment demands by successor owners and third parties. These extinguishment demands are often based on bad faith allegations of hardship, negligence or deceptive practices.
We are also seeing these demands increase because of changes to the land resulting from extreme and unusual weather. They use this as an excuse to attempt to eliminate conservation easements and even to justify trespassing on preserves. The Land Trust Alliance recently published two new Practical Pointers to help land trusts adapt to changing conditions when drafting easements and when administering all conservation holdings.
Here are some additional risk mitigation steps that your land trust can take:
- Ensure that you have ample insurance coverage (Terrafirma, title, general liability and directors and officers).
- Carry out community outreach so that folks of all persuasions see you as an important ally.
- File a Terrafirma claim at the first mention of hiring a lawyer, filing a lawsuit, demanding extinguishment/boundary adjustment by a landowner or neighbor, or any other possible damage or challenge. If you are not certain, then be safe and file a placeholder claim.
We're here to help! If you have questions, please contact us at  .
Sincerely,
Hannah
Hannah Flake
Conservation Defense Specialist
ALLIANCE RISK MANAGEMENT SERVICES LLC
(202) 800-2248 |
P.S. Remember to submit your Terrafirma application for the 2022 policy year by Tuesday, Feb. 1!
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You have a lot of information to track, so it is important that you have a clear system for maintaining records that everyone in the organization follows all the time. You cannot save every piece of paper and still hope to identify and retrieve a critical record when the need arises. Records that are unmarked, misfiled or buried in so much redundant paperwork that they cannot be located in a timely manner are as good as lost.
Once you have a policy in place, everyone should follow detailed written procedures to ensure that nothing is accidentally misplaced and that your land trust is not overwhelmed with documents. These procedures should describe how to establish, identify, collect, manage, store and purge records, as well as reflect your consideration of the records needed to advance your mission, what records might be helpful or necessary to defend your land trust and what records are required by law.
Next month we will review a few specific critical records that you need to keep.
We're here to help! If you have questions, please contact us at .
Sincerely,
Hannah
