Mutual Insurance
About 1834, after he had taken numerous measures to protect his mill from fire, Allen appealed to his insurance company to lower his premiums. The insurance company claimed to "know nothing about his mill, or apparatus" and refused to adjust the premium. Allen studied the problem and in 1835 joined with several other mill owners to establish the Providence Manufacturers Mutual Fire Insurance Company, introducing a system of basing premiums on the effectiveness of safety equipment based on the nature of the business, adequacy of the apparatus and the safe methods of factory construction.
In 1848, Allen formed another mutual insurance company, Rhode Island Mutual Fire Insurance Company to supplement Manufacturers' Mutual.
Two years later, the Boston Manufacturers Mutual Insurance Company was founded by James Read and others, after consultation with Allen. The system of factory mutual insurance would be duplicated in dozens of other locations by the end of the 19th century.
The modern descendant of Zachariah Allen's Mutual Fire Insurance Company, now known as FM Global maintains its headquarters in Johnston, Rhode Island, not far from the Allendale Mill.
Read more about this topic: Zachariah Allen
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