AIG one of the first in the insurance industry to offer $1 billion in coverage to rail companies

Lac-Megantic Railway Disaster insurance industry

AIG has introduced a new insurance products that is specifically designed for the rail industry Shipping crude oil via train is becoming more expensive. There are many risks associated with transporting oil in this fashion, one of the most significant of which is derailment. While train derailments are not common, they happen regularly enough to make transporting crude oil over rail a very risky endeavor. The American Insurance Group is looking to mitigate this risk by offering a new product that provides rail companies with $1 billion in coverage. Insurance…

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Rail insurance coverage may not be sufficient for oil train crashes

rail insurance news industry train transportation

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…

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