Insurance Board selects Obsidian for liability coverage amid premium reductions

The Metro Transit Authority of Nashville has taken a significant step towards cost savings and improved liability coverage by renewing its insurance policy with Obsidian Insurance Company. During a recent meeting, officials discussed the transition from their previous insurer, Chubb, which proposed a steep premium increase of 47% for the upcoming year.

The new policy with Obsidian will provide a $3 million liability coverage limit, with a $250,000 deductible for auto liability and a $100,000 deductible for general liability. The annual premium is set at approximately $1,051,750, marking a reduction of $6,250 compared to the previous year’s premium with Chubb, which had risen to $1,058,000.

This decision comes after a thorough review process, where the authority's insurance broker, Gallagher, explored options across eight different carriers. The move to Obsidian is seen as a proactive measure, especially following a large accident in 2023 that left several claims open. The authority's commitment to enhancing safety measures, led by team members like Earl Rhodes and Nick, has contributed to securing this more favorable insurance rate.

The board is expected to authorize the CEO to finalize the contract with Obsidian, ensuring that the Metro Transit Authority maintains robust liability coverage while also managing costs effectively. This renewal not only reflects a strategic financial decision but also underscores the authority's ongoing efforts to prioritize safety and risk management for the benefit of Nashville's transit system and its riders.