Aon Risk Solutions, the global risk management business of Aon plc (NYSE: AON), today announced the launch of Aon Rail Excess Liability facility. The insurance facility was created in response to emerging risks arising out of requirements in the Rail Safety Improvement Act of 2008 and the Federal Railroad Administration rule of 2012 involving Positive Train Control technology.
The new facility, backed by the security of Lloyd’s of London and other highly rated commercial markets, will provide up to $175 million of liability insurance to qualified buyers and is designed to sit excess of the current liability limits carried by the individual railroad subject to a minimum excess point of $25 million. The facility is open to all insureds, even if Aon did not place the underlying coverage.
"With the imminent implementation of Positive Train Control technology and the recent unfortunate events in the rail arena, Aon developed this innovative facility to respond to client interest in purchasing higher excess liability limits," said Otis Tolbert, Aon Risk Solutions’ Rail Practice leader. "Our unmatched rail expertise and innovation will help ensure that our clients have comprehensive coverage needed for its operations and will empower results for their organization moving forward."