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Services :: Risk Management

Alabama Trust for Boards of Education is a not-for-profit, tax-exempt, member-owned, member-governed self-funded risk management trust Alabama boards of education have available for funding selected liability risk exposures.

The Alabama Association of School Boards (AASB) has since 1976 provided its members a source of liability coverage. From 1976 until 1985, AASB conducted research to identify the most appropriate commercial liability insurance options for boards. Such research led to cost reducing competition among selected insurers. When the commercial insurance industry abandoned boards of education in the liability insurance crisis of the 1980s, AASB established self-funded liability funds for its members. The member-owned, member-governed self-funded trust now known as Alabama Trust for Boards of Education (ATBE) has offered Alabama boards of education a funding alternative for general liability/errors and omissions liability coverage since 1985 and automobile coverage since 1986. The following paragraphs describe ATBE by its characteristics of cost, coverage, claims, and consistency.

ATBE Cost

Commercial insurance companies spend 25-35% of their premiums for administrative costs such as commissions, taxes, operating expenses, and profits. ATBE, like its member boards, is tax exempt and not-for-profit. ATBE pays no commissions and keeps its operating expenses very low. ATBE expenses are significantly lower than those of commercial insurance companies. This administrative cost advantage means lower cost coverage. Investment income earned on funds held for the payment of current and future claims is used to further reduce cost of ATBE participation.

ATBE Coverage

ATBE liability coverage is tailored for selected risk exposures of Alabama boards of education. Taking into account the nuances of immunity defenses, court decisions, and state statutes that apply only to boards of education, ATBE coverage for selected risk exposures benefits Alabama boards in ways commercial insurance does not. One example of such unique coverage is the defense of employee claims arising from on the job injuries. Since Alabama boards do not purchase workers’ compensation insurance and since commercial liability insurance excludes such claims, ATBE provides this much needed defense coverage.

ATBE Claims

ATBE has defended thousands of liability claims on behalf of its Covered Parties.  Drawing on the extensive ATBE Claims experience and the specialization of ATBE defense lawyers in representing boards of education, ATBE provides its Covered Parties unique benefits in the provision of coverage for selected liability risk exposures.

ATBE Appeals

Appeal procedures are outlined in your annual coverage agreement. Please consult your current ATBE coverage agreement for more information about how to submit an appeal. 

ATBE Consistency

For over 35 years, AASB and ATBE have provided coverage for selected liability risk exposures for Alabama boards of education. Since 1985, participation in ATBE means ATBE member boards benefit from consistent, cost-efficient liability coverage.