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The Power of Pooling: The Value of State League Risk Pools

Graphic representation of many individual dots of color comprising the entire state of Vermont

THE POWER OF POOLING: The Value of State League Risk Pools

Municipality-Based. Municipal governments are organized and governed differently from private companies. With their operations uniquely affected by statute, it just makes sense for cities and towns to pool resources and share their risks with similar entities.

Not Just Transaction: Interaction. Commercial insurers use a transactional business model to sell pre-set products, which simply can’t be compared “apples to apples” with all that VLCT offers. The trusts’ personal interactions with members provide valuable benefits, programs, and opportunities in addition to coverage. When commercial insurers can’t make the profits they seek, they might raise prices markedly or stop offering coverage to municipalities.

You Own It! PACIF and VERB are owned and governed by Vermont municipalities and operated by VLCT staff who work with the Board of Directors (your peers) to tailor the insurance and related programs to meet the needs of members in general and each community in particular.

Customer-Centric. Members’ needs and concerns are the prime motivator for what the trusts offer and how they are operated. VLCT staff, who understand the challenges faced by municipalities, provide excellent service and useful resources such as comprehensive training, specialized consultation, and grants & scholarships. Our goal is to help municipalities determine their own path of risk management.

Contribution Credits. As owners of the VLCT trusts, municipalities benefit directly when contributions exceed claims and other operational expenses. Each year, adequate reserves are set aside to guard against unusually large claims or other unexpected events and reinsurance is put in place for added protection.. When these reserved funds can safely be released, members receive contribution credits – almost every year.

Aligned With Our Mission. All of the people behind PACIF and VERB look out for our members’ needs and for unseen risks. Steadfastly having the backs of Vermont municipalities is the reason the VLCT trusts exist. 


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Disclaimer: This resource is only intended to provide information and it does NOT constitute legal advice. Readers with specific legal questions are encouraged to contact an attorney. The use or downloading of this resource does NOT create an attorney-client relationship and will not be treated in a confidential manner. 

If you have additional questions relating to ordinances and policies or would like a technical review of your municipality’s proposed ordinance or policy, click here: 

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