Abram Foote, founder
Foote homestead and insurance office, Cornwall, VT
Co-operative Insurance Companies' history
Co-operative Insurance Companies is an association of three Vermont-based co-operative fire insurance companies.
The Patrons Co-operative Fire Insurance Company was organized on June 14, 1915, by Abram W. Foote of Cornwall, a prominent, respected businessman -- and later, a Vermont lieutenant governor -- who liked to help his neighbors. At first, only members of the Grange who lived in Addison County could buy insurance from the new company. But the Patrons was so successful that it was writing insurance statewide by 1917.
The Farmers Co-operative Fire Insurance Company, formed in 1924, offered insurance to non-Grangers. Edward H. Peet was elected president, and Foote was named secretary.
Charles Foote, son of Abram Foote, organized the Rural Co-operative Fire Insurance Company in Wallingford in 1933.
By 1938, the Patrons, Farmers, and Rural wrote a combined $75 million in insurance. They had become so succesful and popular with Vermont farmers that they insured about 50% of all farms in the state!
Having such a large percentage of business concentrated in a relatively small geographic area was not such a great idea: all the proverbial eggs were in a small basket. Devastating damage by a hurricane in November, 1950, proved the biggest turning point in the companies' history. The fierce storm swept the entire state, but was especially severe in the Champlain Valley, leveling many barns. Damage was also substantial elsewhere in Vermont. In the end, the hurricane caused more than 4000 wind claims, severely straining the companies' ability to pay claims.
For financial and efficiency reasons, the three individual companies decided to form an association -- Co-operative Fire Insurance Association of Vermont -- in December, 1951. The new association wrote its first policy on February 15, 1952. The pooling of resources was beneficial and resulted in an extended period of rapid growth.
The name of this association was used until December 31, 1997, when it became Co-operative Insurance Companies. The name still reflects the heritage of the founding companies and should serve us well in the 21st century.