Philadelphia Contributionship Insurance Company
by Susan Rissi Tregoning
Title
Philadelphia Contributionship Insurance Company
Artist
Susan Rissi Tregoning
Medium
Photograph - Photography
Description
The Philadelphia Contributionship for the Insurance of Houses from Loss by Fire was established in 1752 by Benjamin Franklin and his friends. Incorporated in 1768, it is the oldest property insurance company in the United States.
The Contributionship's building featuring Corinthian columns was built in the Greek Revival fashion in 1835-36. The building, recognized for its historical significance, was officially registered on the National Register of Historic Places in 1971 and later bestowed with the esteemed title of National Historic Landmark in 1977.
The Philadelphia Contributership was structured as a mutual insurance organization offering fire insurance within a limited area in and around Philadelphia. The company introduced essential principles that form the foundation of modern insurance practices, including property inspections and risk-based rate setting. Buildings that did not meet specified standards were not eligible for coverage, and rates could be increased for unsafe practices like storing flammable materials in wooden structures. Additionally, this company was the first to establish a financial reserve to pay claims.
In the February 18, 1752, issue of Franklin's newspaper, The Pennsylvania Gazette, an advertisement informed readers about an upcoming organizational meeting on April 13. The notice requested that individuals interested in subscribing to house insurance against fire in or near the city were to attend a meeting at the Courthouse. Subscriptions would be accepted every seventh day of the week in the afternoon until April 13, the designated day for electing twelve directors and a treasurer.
In the early days, the company directors would gather in taverns and other public spaces for their meetings, while larger organizational gatherings were held at the Courthouse. Eventually, in 1835, they acquired land to establish this permanent headquarters. Despite not introducing any new insurance practices since its inception, the company still operates as an insurer in Philadelphia today.
Copyright 2023 Susan Rissi Tregoning
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July 13th, 2023
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