Slave insurance in the United States facts for kids
Slave insurance in the United States was a type of insurance that became important after 1808. In that year, a federal law called the Act Prohibiting Importation of Slaves stopped new enslaved people from being brought into the U.S. This made the enslaved people already in the country, especially those with special skills, more valuable.
Owners often rented out these skilled enslaved people to different businesses. To protect their investment, owners bought insurance. This insurance would pay them if an enslaved person died or was lost. Industries that rented insured enslaved people included blacksmithing, carpentry, building railroads, coal mining, and operating steamboats. Enslaved people working as firemen and cooks were also insured. Even Chinese enslaved people, sometimes called "coolies", were insured.
Many insurance companies in the history of slavery in the United States sold policies to slave owners. These policies protected owners against losing, damaging, or the death of their slaves. Today, some of these insurance companies still exist. This has brought attention to this part of history.
A lawyer named Deadria Farmer-Pallmann found an old paper from 1852. It listed insurance companies that sold these policies. For example, the National Loan Fund Life Assurance Company had a paper called "A Method by Which Slave Owners May Be Protected From Loss." It named The Merchants Bank and The Leather Manufactures Bank as places that could handle claims. A typical policy might insure an enslaved person for $500, with a yearly payment of about $11.25.
Laws About Slave Insurance History
On September 30, 2000, Governor Gray Davis of California signed two new laws about slave insurance. One of these laws was written by former California State Senator Tom Hayden. The California government found some important facts:
Insurance policies from the slavery era have been found in the records of several insurance companies. These papers show that insurance was sold to slave owners to cover damage to or death of their slaves. This is the first proof of money made unfairly from slavery. This money helped these insurance companies grow, and their successors still exist today.
The California insurance commissioner, who is in charge of insurance in the state, can ask insurance companies doing business in California to show their old slave insurance policies.
A second law, called the UC Slavery Colloquium Bill (SB 111737), gave the University of California the choice to hold a meeting about the money side of slavery. Important groups like Jesse Jackson's Rainbow/PUSH and the NAACP supported these laws.
In California and other states, people have asked to check any documents that show profits from slavery. They want to see if these profits helped current insurance companies grow.
Part of Governor Davis's law included rules for the Commissioner. The Commissioner must ask for and get information about any records of slave-holder insurance in the state. Then, the Commissioner must get the names of any slave holders or enslaved people mentioned in these records. Also, every insurance company licensed in California must show any policies they issued to slave-holders that covered damage to or death of their slaves. Finally, any enslaved people whose ancestors' owners were paid for damages by insurers have the right to know all this information.
While studying the history of coal mining, a writer recently found more information about life insurance policies for enslaved people working in coal mines. These policies made it less risky for owners to rent out enslaved people. However, it was very dangerous for the enslaved people who had to work in the mines. Insurance companies even sold policies for 12-year-old enslaved children who worked underground.
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