Texas lawmakers are considering legislation that would create a state-managed insurance pool for prescribed burn managers, a move that could reshape liability coverage in one of the state’s riskiest and most essential industries.
The proposal, Senate Bill 2510, introduced by Senator Lois Kolkhorst, seeks to establish the Temporary Prescribed Burn Manager Self-Insurance Pool, a novel risk management framework intended to provide general liability coverage to certified burn managers. Prescribed burns - controlled fires used to manage vegetation and reduce the threat of wildfires - are a key tool in Texas’s land management strategy but carry inherent risks that have made liability coverage costly and scarce.
Under the bill, the Texas A&M Forest Service would oversee the self-insurance program, consolidating risk management efforts and setting strict eligibility and safety standards for participation. The measure would amend the state’s insurance code, adding a new chapter dedicated solely to the program.
At the heart of the proposal is a state-administered insurance pool, funded through a combination of legislative appropriations (capped at $25 million), fees from participating managers, and interest income. Liability coverage would be limited exclusively to prescribed burns conducted by certified individuals, with exclusions for workers’ compensation, automobile liability, and other professional liabilities.
The Texas A&M Forest Service would set deductibles and premiums with the explicit aim of discouraging minor claims, instead reserving payouts for significant losses. Participation would require not only compliance with rigorous equipment and safety standards but also completion of wildfire suppression training courses designed to ensure coordination with local fire departments in the event of a burn that escapes containment.
Notably, the bill caps the state’s financial liability at the assets contained within the insurance fund, shielding Texas taxpayers from broader exposure. Any remaining balance in the fund when the program sunsets in 2040 would be transferred to the state's wildfire contingency account, according to the bill.
The legislation also gives the Forest Service authority to terminate participation for managers who file excessive claims, referring repeat offenders to the Prescribed Burning Board for potential disciplinary action.
For private insurers, the bill represents the introduction of a public-sector competitor in a niche but critical area of liability coverage. Traditionally, coverage options for prescribed burn managers have been limited and often prohibitively expensive. By offering a narrowly tailored, state-supported alternative, the bill could suppress demand for similar private insurance products - though its scope is intentionally confined.
Industry analysts may find the proposal’s emphasis on loss prevention, data-driven premium adjustments, and strict compliance requirements reflective of broader trends in parametric and risk pooling models gaining popularity in various sectors.
With wildfire risk intensifying across the country, Senate Bill 2510 walks a tightrope between regulatory oversight and interfering with the free market – which has had cataclysmic effects in states like California.
