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Terrafirma: Conservation Defense Insurance for Land Trusts
Terrafirma is a unique, member-owned insurance program designed to help land trusts defend their conserved lands against legal challenges. Established by the Land Trust Alliance, it provides coverage for the legal costs associated with upholding conservation easements and fee-owned lands. With over 550 participating land trusts across the U.S., Terrafirma offers not only financial protection but also resources and guidance to proactively manage risks and uphold lasting conservation. Ideal for land trusts seeking a reliable safety net to ensure the permanence of their conservation efforts.
To be eligible for Terrafirma, your land trust must be able to answer “yes” to each of the 13 eligibility requirements:
- Is the land trust legally organized and in good standing in the state in which it is incorporated or organized?
- Is the land trust tax exempt under IRC §501(c)(3) or listed on Publication 78 (or a successor listing) with the IRS?
- Does the land trust have a complete baseline documentation report for every conservation easement or deed restriction?
- If the land trust is insuring its fee properties, does the land trust have a complete inventory for every parcel of fee-owned land?
- Does the land trust implement a program of annual monitoring of its conservation easements or deed restrictions?
- If the land trust is insuring its fee properties, does the land trust regularly monitor its fee-owned land?
- Is the land trust a member in good standing of the Land Trust Alliance?
- Is the land trust free of any final judgment against it for fraud, misrepresentation, criminal charges, bad faith, misleading business practices or any other similar charges?
- Is the land trust free from any ongoing governmental investigation or inquiry, such as an attorney general investigation, legislative hearing and the like, the subject of which is land trust complicity in misleading business practices, fraud, gross negligence or criminal misconduct?
- Is the land trust operating at breakeven (where income and expenses are equivalent) or does it have a plan to reach breakeven that may, among other actions, include use of reserves?
- Does the land trust have general liability insurance? (no D&O requirement)
- Does the land trust have and implement a written records policy and secure recordkeeping system that preserves irreplaceable documents essential to defense and enforcement?
- Is the land trust actively building its legal defense and general stewardship reserves or other reserves that can be allocated for legal defense and stewardship, unless prohibited by state statute or regulation?