MTA has $350M in coverage in commercial insurance market: Risk manager
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The Metropolitan Transit Authority, whose Metro-North railroad train derailed Sunday in New York, has $350 million in coverage in excess of a $10 million self-insured retention and $50 million in liability coverage through its captive insurer, the agency's director of risk management said Tuesday.
Some 100 to 150 people reportedly were on an early morning train from Poughkeepsie, N.Y., when it rounded a bend in the Bronx near the Henry Hudson Bridge and derailed. In addition to the four people killed, more than 60 were injured, officials said. According to news reports, the train was going more than 80 miles an hour.
Laureen Coyne, the MTA's New York-based director of risk and insurance management and president of its captive, First Mutual Transportation Assurance Co., during a press conference said the additional $350 million in coverage above the combined $60 million from the self-insured retention and captive is with six or seven carriers, whom she would not identify. The captive, which was established in 1997, is managed by Marsh Management Services in Melville, N.Y.
Ms. Coyne said the MTA has a property program with a $25 million deductible for first-party damage, although “we don't expect to reach the $25 million.” She added, however, that the MTA is assessing the situation in terms of damage to its equipment. She noted the property program includes business interruption coverage.
Ms. Coyne said the federal National Transportation Safety Board is on the site investigating the accident, as well as MTA personnel including claims specialists. She had no comment on the status of the train conductor, nor on whether the MTA planned any changes in its risk management standards.
The driver of the train told investigators he “lost focus” shortly before the crash, according to news reports.
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