The San Francisco Municipal Transportation Agency has voted to buy a one-year excess transit liability (catastrophic loss coverage) insurance policy with American Merchants Casualty Co. and Everest National Insurance Co. for an annual premium of $2.4 million, which includes a $25 million excess liability limit with a $5 million self-insured retention level subject to approval by the city Attorney’s Office of the policy’s endorsement terms.
Monies to pay for the policy would come from the fiscal year 2010 operating budget, according to the Board.
On May 30, 2008, a memorandum was provided to the Board of Directors regarding insurance and risk management for the Agency. The memorandum suggested the completion of an overall risk assessment prior to any decisions being made on purchase of additional coverage. However, the Board of Directors made the decision to pursue catastrophic loss coverage placement before the completion of full risk analysis.
Currently, the city primarily self-insures for all of its major loss exposures. Limited insurance has been purchased in the past. However, the Board noted that in 2001, in Dominguez v. CCSF, the MTA settled for $21 million follwoing an accident in which a Muni truck jumped a curb and killed a four-year-old.
Source: MTA
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