Casualty insurance covers the operator’s third-party liability
Damages payable to both the nearby commercial farming facility and the energy substation for the physical damage caused by the rail operator’s actions could potentially be covered by a casualty policy such as those Argo offers.
In some events, a casualty policy may also cover responsibility for bodily injury and the cost of pollution cleanup.
Losses in the casualty business typically stem from newsworthy events, and they are often catastrophic – train crash damage can total $40 million to $50 million.
Argo’s casualty unit is focused on writing third-party liability exposures for Fortune 1000 entities. Clients include railroads, energy companies, hotel groups and real estate operations.
The potential for extreme losses on these accounts makes it particularly important to develop a close relationship between insurer, broker and client. About 75 percent of Argo’s casualty clients send risk managers, treasurers and CEOs to Bermuda to have active conversations about risk.
Collaboration between casualty, property and professional liability underwriters is vital to this relationship, explains Deirdre Lohan, Argo Insurance senior vice president, casualty manager.
“Frequent collaboration with our property and professional colleagues allows us to customize comprehensive programs that better meet all the needs of our clients,” said Lohan. “We can leverage our individual writings to show our insureds that we have a big presence on their program.”