Metro Legal: insurance carrier investigating downtown library garage fire; city likely underinsured

Metro Legal told the Transportation Infrastructure Committee on Sept. 1 that the city’s property insurer, Travelers, is conducting an investigation into the downtown library garage fire and that Metro is pursuing recovery from other potentially responsible parties where possible.

Tom Cross of the Metro Legal Department said the city placed the insurer on notice and has received certificates of insurance from other parties with potential exposure, including the downtown partnership and at least one subcontractor involved in operating the garage. "We're Metro has property insurance, and our carrier is Travelers, and they're in the midst of an investigation about the causes of the fire and who else might potentially be responsible for it," Cross said. "I will note that we think we're probably under insured on this particular property," he added.

Cross said Travelers initially expressed concern about safety and access to the area of origin at the site; after further assessment the carrier is proceeding with its investigation. Committee members asked about whether insurance would cover the library’s lost use or business interruption; Cross said the available coverage addresses damage to the facility and that business‑interruption or loss-of-use claims are not guaranteed by the policy. "It's just the damage to the facility, not loss of use or business interruption," he said.

Members also asked how property values used for insurance are determined. Cross said departments provide asset valuations to the insurance group and the insurer may audit if it believes values are significantly off; Metro Legal said it will review internal processes for periodic audits because the investigation suggests the city’s recorded value was likely understated.

Council members pressed for updates on operational impacts and staffing. Committee members said the downtown library’s closure has displaced events and services relied upon by downtown residents, including people experiencing homelessness. Cross said Metro Legal will pursue all available recoveries from other entities and their insurers but cautioned that other entities may lack adequate coverage or assets.

Outcome and next steps: Metro Legal said the insurance investigation is underway and that the city will continue to track recovery options and internal process changes to asset valuation. The committee requested follow-up information about the investigation and potential impacts on library operations and staffing.

Ending: The investigation and insurance discussions remain ongoing; Metro Legal said the process will take time and that the city will report back to the committee as the insurance carrier and other potentially responsible parties complete their work.