AIG boosts US railroad excess casualty limits
American International Group (AIG) has expanded excess casualty liability limits for Class 1 railroads in North America to $1 billion per occurrence.
The coverage for cat losses would be in excess of $1.5 billion in underlying limits. AIG said it is one of the largest capacities offered to the rail industry by a single insurer.
The excess coverage is provided by domestic and surplus lines carrier Lexington Insurance Company and other affiliated AIG companies.
AIG said the expanded coverage is a response to the demands of North America’s largest rail companies contending with record rail traffic and the growing number of rail cars carrying potentially hazardous materials, such as crude oil.
“These expanded limits are another way AIG’s scale and innovation is meeting the needs of our critical infrastructure clients and the customers they serve,” said Russ Johnston, president, casualty Americas. “The Class 1 railroads are seeing strong growth and a resulting increase in risks they need to cover. AIG is one of the few carriers that can provide customers the large limits and risk expertise to meet this need.”
Jeremy Johnson, president & chief executive officer, Lexington Insurance Company, added: “Rail companies need additional coverage to help protect their balance sheets. This billion dollar coverage will help Class 1 railroads address expanding risks while continuing to serve the growing needs of transportation customers in North America.”
