November 24, 2014

DOT: Rails lack insurance for oil train disasters

oil-train-railThe insurance policies that most railroads have cannot cover the costs of many crashes or derailments involving oil trains, the Department of Transportation said.

New safety rules for oil trains proposed last week would not mandate higher insurance levels than the $25 million common to the industry.

But a DOT analysis released along with the rule found that the costs of oil train disaster average about $25 million, meaning many major incidents would exceed the threshold.

Read the complete story at The Hill.