Frequently Asked Questions

Many email and Internet companies are now using programs to block unsolicited, unwanted advertising email, commonly called “spam.” However, these programs may also block emails you want to receive. To ensure that you receive notification of publication updates prepared by LGIT staff, please make sure to “Whitelist” listserv@civicplus.com. A Whitelist is a list of accepted items or persons in a set—a list of email addresses or domain names from which an email blocking program will allow messages to be received.

The funds LGIT uses to pay claims belong to the member towns, cities and counties of Maryland. Every loss that is avoided saves money. LGIT’s loss control seminars, Risk Management Bulletin and other publications and visits by the Trust's loss control representatives all have the purpose of helping local governments minimize risks and avoid losses.

The private insurance market runs in hard and soft cycles. During a soft cycle, insurance is relatively cheap and easy to acquire. During a hard cycle, insurance is very expensive and hard to obtain because insurance companies tend to view local government losses as risks that are undesirable or unpredictable. In the hard cycle of the late 1980s, a majority of Maryland towns, cities and counties suffered from the high cost of insurance premiums and loss of insurance coverage. Because of the existence of LGIT, Maryland local governments know they now have coverage available to them at stable rates and predictable costs - regardless of private insurance industry cycles.

In some ways, LGIT functions like an insurance company. Maryland local governments pay a premium to LGIT, LGIT gives the member government a coverage document that looks like an insurance policy, and LGIT pays claims and losses on the member’s behalf. However, there are a few important differences.

LGIT is owned and managed by its member local governments. Its purpose is to meet local government risk management needs - not to make a profit by selling insurance. Because LGIT is a nonprofit organization, if the Trust’s income from fees and investments is more than is needed to pay for losses and expenses, the excess funds may be returned to the members.

To ensure that LGIT is able to meet its responsibility to pay claims, LGIT’s Board of Trustees has always ensured that the Trust is strong and financially sound. To achieve this goal, LGIT takes a conservative approach to rates and reserves, spreads risk via reinsurance with the strongest re-insurers and conducts regular actuarial reviews to make sure the Trust is on solid ground.

LGIT operates five major coverage programs: primary liability, property, equipment breakdown, excess liability and environmental impairment liability.

LGIT is governed by the Board of Trustees that is composed of a combination of elected and appointed county and municipal officials who have experience in local government operations and are members of the Trust. The composition of the Board of Trustees ensures that the policies, operating procedures and quality services of the Trust are designed with LGIT members’ needs in mind.

DDC, National Safety Council (NSC), certification expires every 2 years. Flagger, National Traffic Safety Service Association (ATSSA), certification expires every 4 years.

From a Liability point of view, no. The Liability premium is based on full time equivalent employees. So unless you increase your staff it will not cause your premium to be increased. Therefore, you could open several parks and unless you increase your staff no premium increase will result. Now from the Property coverage side, yes the premium will be increased based on the amount of value to be insured. Options here are for RCV, ACV or stated value. The only other way premiums may be increased would be with any adverse loss experience and or loss ratio increase.