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Insurance news in Canada has increased coverage requirements for oil trains

February 25, 2015February 24, 2015 Julie Campbell

rail insurance news industry train transportation

The country is now demanding that rail vehicles transporting oil must have additional protection against spills and explosions. According to the Transport Minister of Canada, Lisa Raitt, has made an insurance news announcement that has said that the country will be increasing the amount of coverage that railways will be required to carry when they are transporting crude oil. Shippers will also have a levy imposed upon them in order to help to pay for the cost of major accidents. This insurance news comes at a time in which the…

Huge rail insurance for oil shipment coverage now offered by AIG

October 13, 2014October 11, 2014 Julie Campbell

The insurer now has a product to cover train accidents for up to $1 billion to help meet the growing demand. Yet another train carrying oil has now derailed in Canada, this time near Wadena, Saskatchewan, last week, when it also caught fire, causing an ever rising number of questions to appear with regards to the types of rail insurance that will be necessary to protect companies and railways. In response to this need for coverage, AIG is now offering a $1 billion liability product for railways. With the rapidly…

Rail insurance coverage may not be sufficient for oil train crashes

August 14, 2014August 12, 2014 Julie Campbell

At the moment, the maximum available coverage per carrier, per incident is $1 billion. According to a recent Department of Transportation (D.O.T.) analysis of its own rules with regards to rail insurance, the majority of freight railroad policies would not even start to cover the complete cost of the damage that could be caused by a moderate accident involving an oil train, let alone a massive disaster. The database of the D.O.T. has flaws with regards to incidents involving oil trains. The reason that the database of the D.O.T. is…