APTA recommends commuter-rail liability insurance program

The American Public Transportation Association (APTA) is recommending a commuter-rail insurance program be established at the U.S. Department of Transportation to provide insurance to commuter-rail agencies.

The recommendation is based on APTA's recently released report, "Recommendation on Commuter Rail Liability Insurance."

The report outlines how the commuter-rail insurance market has become significantly more expensive and has much less capacity in terms of insurers willing to participate. As a result, agencies have been forced to turn to foreign markets for insurance. Moreover, the market will not correct or improve on its own without federal involvement, the report states.

 "Commuter rail is a key component of improved public transit infrastructure, enhanced mobility, economic recovery and addressing climate change. Without federal intervention, commuter-rail agencies will continue to face a significantly reduced market capacity for coverage, along with unreasonable premium costs, threatening operations," said APTA President and Chief Executive Officer Paul Skoutelas in a news release. "The stability that federal involvement could bring would help foster the desired investment in infrastructure, as well as addressing the economic and operating challenges that these agencies face."

Read the full report here.