MACo Corporate Partner Profile: Local Government Insurance Trust

MACo is proud to re-introduce the Local Government Insurance Trust (LGIT) who has renewed as a gold-level partner in our Corporate Partner Program.

LGIT is a non-profit association authorized by state law, wholly-owned and managed by its local government members. The Trust’s main purpose is to provide joint self-insurance programs or “pools” for towns, cities and counties in the State of Maryland. The concept is simple: rather than paying premiums to buy insurance from an insurance company, local governments contribute those premiums into a jointly-owned fund. The money in that fund is used to pay for the members’ claims, losses, and expenses.

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 not-for-profit 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.

More information on the Trust is available at LGIT’s website overview page.

LGIT boasts 175 Total Participants:

133 municipalities;
16 counties;
23 sponsored participants, plus;
3 MACo, MML and LGIT

LGIT Full Membership Directory

MACo, who along with MML is a co-founding organization of LGIT, is proud of the service and support LGIT has provided its many local government members during its decades of service, and appreciates the strong support at MACo events and conferences.

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