During the liability crisis of the mid 1980's the Pest Management Professionals in Louisiana encountered extreme difficulty in locating and maintaining a stable market for their General Liability insurance. Although their combined cumulative loss ratios remained constant at a level below 50%, they found themselves perpetually facing increased rates and limited coverage availability.
Facilitated by the Louisiana Pest Control Association (LPCA), in May of 1986 Pest Management Professionals formed the Louisiana Insurance Pest Control Association Self-Insurers Trust (LIPCA) and Louisiana Pest Control Insurance Company (LPCIC), a stock property and casualty insurer chartered and domiciled in Louisiana. LIPCA was incorporated under the laws of Louisiana on June 30, 1987 to replace the Trust as the parent of the insurance company.
The Company undertook a number of projects in 1991, including the acquisition of a state of the art computer system to process claims track policies and adjustment expenses, and manage other vital functions. The new fully automated system will also generate policies and endorsements, automatically assign premium audits, generate cancellation letters and notices for non-payment of premium and perform marketing duties.
The following year, LPCIC constructed a home office to house its entire operations. LPCIC, LIPCA and LPMA are housed in the building. Additional space is currently occupied by a another tenant.
The Board of Directors and employees of LIPCA, Inc. are very committed to the continued growth and expansion of the company. As the company begins its second decade of service, the loyalty and dedication of Louisiana Pest Management Professionals is recognized, as is the promise to make a return on their original investment. Since 1998 LIPCA has been writing pest and lawn professionals and in 2007, LIPCA was made a Coverholder for a pest control general liability program through Underwriters at Lloyds, London. As Coverholder, LIPCA is responsible for underwriting, claims, audits, billings, loss control and marketing. The program, underwritten entirely by the BRIT syndicate, is available in all 50 states and insures hundreds of Pest Management Professionals.
Beginning in 2013, LIPCA Insurance entered into an agreement with Berkley Underwriting Partners to offer its pest insurance product to be written on StarNet Insurance Company and other W. R. Berkley Corporation member insurance companies, all of which are rated A+ (Superior) by AM Best Company. StarNet is one of the longest running national pest insurance carriers in the U. S. LIPCA’s Program is now offered through admitted and surplus lines carriers that are both A+ rated by AM Best.
The needs of the pest control industry continue to change and grow. LIPCA is committed to meeting their needs and fulfilling its mission to the company's insureds and stockholders.