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Mutual insurance came into existence in America in 1752 when Benjamin Franklin developed the idea that people might voluntarily join together and help one another when a severe loss occurred. By that time in the history of the United States, the eastern part of our country was becoming more settled. Individuals accumulated items of value, buildings were permanent, houses began to have wooden floors, doors with hinges, and windows with glass panes. Homes and barns were worth protecting. A farmer’s barn or home could be wiped out in a short space of time by fire. This was a terrible calamity in those days. These buildings represented the farmer’s whole investment, so neighbors would come and help rebuild. Franklin’s idea of mutual insurance caught on.
The mutual idea of helping one’s neighbors and sense of community responsibility when a fire occurred was very strong. Out of necessity, the mutual concept was born—many persons binding together so their losses would be shared by others. During the next few years, several mutual insurers were formed in the eastern part of our country. Gradually, as money became more plentiful, payments called assessments were made to a common fund used to repair the damage sustained by members of the mutual company instead of actual labor. From this idea of neighbors uniting to help rebuild damaged property, neighborhood insurance associations were established under the leadership of a board of directors. Members paid into a common fund and indemnified each other against loss. The company was essentially owned by the policyholders and they were the people who benefited if their home or barn burned.
Madison Mutual Insurance Company is an assessment cooperative property/casualty insurance company located just to the west of the Village of Chittenango, Town of Sullivan, Madison County, New York state. It first began operations doing business as the Madison County Farmers Mutual Fire Insurance Company on February 15, 1882. Then on January 30, 1893, it was formally incorporated by local farmers and business persons as the Madison-Onondaga Mutual Fire Insurance Company. Two families very prominent in the organization of the company were the Gates and the Bulls. Members of these families also served as board members. The Gates family has, for over 100 years, had a family member on the Board of Directors. Descendants still live in the area and are still insured by Madison Mutual Insurance Company. The company was established mainly to insure local farmers and business owners who were interested in protecting their businesses, barns, homes, livestock and equipment from fire and lightning. Coverage for the peril of windstorm was made available later, and in 1976 casualty insurance was written for the first time. The founders wrote insurance for members living in Madison and Onondaga Counties.
In January of 1983, Madison-Onondaga Mutual Fire Insurance Company merged with the Herkimer Cooperative Insurance Association. The name of the company was changed at that time to Madison Mutual Insurance Company. The company expanded again in January of 1986 when it merged with the Patrons Fire Relief Association of Madison County, New Woodstock, New York.
The company has always had its offices in the Chittenango area, from a one-room office in a private home, to a larger office on the main street of the village, to the present location on State Route 5 just west of Chittenango. Our current location was purchased in 1987. In 1993 the company celebrated its 100-year anniversary. Since that time, the company has continued growing and improving its financial stability.
Due to expansion in the volume of business and staff members, an addition twice the size of the original building was constructed in 1995. Our present office now comfortably houses our staff with room for future expansion. The company currently has eleven full-time employees and one part-time employee.
The company now writes insurance in all of New York State except the five boroughs of New York City. Along with offering insurance coverage for fire, lightning, and wind damage we also offer programs for businessowners, landlords, seasonal dwellings, snowmobile physical damage, motels/hotels, homeowners, manufactured homeowners, and commercial property. It has survived for over a century because care has been taken to adhere to the original founders’ basic concepts and ideals. Although still considered a small company, Madison Mutual Insurance Company knows how to get things done. We strongly believe in knowing the people we do business with, looking at property insured, and being ready to serve our policyholders if catastrophe strikes. We are always looking for producers that think the same way.
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