PUMICPublic Utility Mutual Insurance Company
A Risk Retention Group
PURMA acts as the general administrator for PUMIC and provides information on the insurance products offered to PURMA members.
Insurance protecting policyholders from most liability exposures.
Insurance to provide limits in excess of an underlying liability policy.
Insurance that protects policyholders against financial loss because of legal liability for automobile related damages or bodily injury.
Public Officials’ Liability (Directors & Officers)
Insurance protecting against exposures of publicly elected officials and Directors & Officers of an organization including allegations of errors, omissions, misstatements, negligence or breach of duty.
Fiduciary & Employee Benefits Liability
Insurance policy that indemnifies the insured from claims arising out of a wrongful act including breach of fiduciary duty or any error or omission related to the administration of any employee benefit program.
Errors & Omissions (Professional) Liability
Insurance policy for designated activities to respond to allegations of errors or omissions in the performance of professional services provided for a fee.
HOW IT STARTED
In 1977, a small insurance buying group of publicly owned utilities began to face the difficulty of procuring sufficient general liability insurance due to hardening insurance markets and the accompanying increase in premiums. The Northeast Public Power Association (NEPPA) acted as the sponsor and coordinator for the group. NEPPA is the regional service organization for publicly owned utilities in the northeast. The insurance program grew in both coverage and membership. In 1992 a full-time Director of Risk Management was hired to manage the program and continue its growth. In 1996, with the group growing and new programs planned, PURMA was created. While a separate entity from NEPPA, NEPPA and PURMA remain “sister” organizations. The Director of Risk Management filled the newly created position of Executive Director, and a Director of Risk Management and office manager were hired.
The insurance program was essentially a cooperative purchasing group, with an extraordinarily low loss experience. A feasibility study was conducted for creating a captive insurance company. The findings supported the concept, and PUMIC, a Vermont domiciled association captive, was created with $1 million capital contributed from six PURMA members. PUMIC began writing casualty lines of insurance on December 31, 1997. In 2007, the organization, while maintaining its structure as a mutual insurance company, converted to a risk retention group (RRG) under the Federal Liability Risk Retention Act.