Board confirms $50M fleet insurance policy amid discussions on coverage and deductibles

During the recent Metro Transit Authority meeting held on June 26, 2025, in Nashville, significant discussions centered around the agency's insurance coverage and risk management strategies. The meeting highlighted the authority's commitment to maintaining robust coverage for its fleet despite a decrease in premium costs.

The board confirmed that there would be no reduction in coverage levels, maintaining a $50 million policy that adequately protects the fleet. This decision comes in light of a risk matrix indicating a potential $47 million in uncovered risks, particularly during the hours between 1 AM and 4 AM. However, officials expressed confidence in their disaster recovery plan, which has been regularly updated and submitted to the Federal Transit Administration (FTA). This plan is designed to ensure that the agency can receive federal support in the event of a disaster.

The discussions also touched on industry standards, with board members affirming that the current insurance strategy aligns with practices typical for fleets of similar size. Questions from board members included inquiries about the deductible, which was confirmed to be $100,000 for auto damage.

Overall, the meeting underscored the Metro Transit Authority's proactive approach to risk management and insurance, ensuring that the agency remains prepared for unforeseen events while safeguarding its operations and services to the community. As the authority continues to navigate the complexities of transit management, maintaining comprehensive coverage will be crucial for its ongoing stability and reliability.