Sec. 9401. Sense of Congress regarding commuter rail liability insurance
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Congress finds the following: Prior to the COVID–19 pandemic, 32 commuter railroads across the United States safely carried passengers on more than 500,000,000 trips each year. Commuter rail is a $9,900,000,000 industry that creates and supports more than 200,000 public- and private-sector jobs, and continues to grow. Most commuter rail agencies are required to maintain liability insurance up to statutory liability limits. Commuter rail agencies face significant obstacles to finding and obtaining liability insurance.
Only a handful of insurers offer this coverage, and a significant percentage of the railroad liability insurance marketplace is provided by foreign companies. The number of insurers in the American and foreign markets willing to even offer potential capacity for this coverage has drastically decreased over the past several years, and, regardless of cost, it is becoming extremely difficult for commuter railroads to obtain the needed coverage. Despite the exceptional safety record of commuter railroads and recent full compliance with positive train control, a 2021 survey of the American Public Transportation Association’s commuter rail agencies revealed that there has been a 60 percent increase in premium costs over the last 3 years.
The increase in premiums is largely due to factors outside the control of the commuter rail industry, including major forest fires, hurricanes, and insurers exiting the market. The cost of liability insurance severely impacts the operating budgets of many commuter rail agencies and potentially affects their ability to offer these critical public transportation services. It is the sense of Congress that Congress should address the capacity and cost issues associated with the commuter rail liability insurance market and consider establishing a commuter rail insurance program within the Department of Transportation.