Meeting_Body
FINANCE, BUDGET, AND AUDIT COMMITTEE
APRIL 16, 2026
Subject
SUBJECT: PROPERTY INSURANCE PROGRAM
Action
ACTION: APPROVE RECOMMENDATION
Heading
RECOMMENDATION
Title
AUTHORIZE the Chief Executive Officer to negotiate and purchase All Risk Property and Boiler and Machinery insurance policies for all Metro properties at a not-to-exceed premium of $10 million for the 12-month period of May 10, 2026 through May 10, 2027.
Issue
ISSUE
Property insurance protects Metro's assets, including structures, fleets, and improvements. Property insurance is also mandated through contractual obligations, including lease and leaseback agreements covering several of Metro's operating assets. The All-Risk Property and Boiler and Machinery insurance policies expire on May 10, 2026.
Background
BACKGROUND
Metro's insurance broker, Marsh USA, LLC (Marsh USA), is responsible for marketing the property insurance program to qualified insurance carriers. Marsh USA is a newly selected insurance broker for Metro and has demonstrated market depth and expertise to secure the best programs to fulfill the needs of a large transit risk. In this continuing hard market, quotes are currently being received from, and negotiations are ongoing with, carriers that have acceptable A.M. Best ratings that are indicative of acceptable financial soundness and the ability to pay claims. Premium indications are based on current market expectations. Final pricing, however, is not yet available as Marsh USA continues to broker the most competitive pricing for Metro.
Metro established the Excess Commercial Property Insurance program to protect against insured losses. Each year, Risk Management collaborates with our insurance broker to prepare for the upcoming marketing process, secure the data required to approach underwriters, and obtain the most competitive coverage and premium available.
Initial discussions begin in the first quarter of the fiscal year through an evaluation of ...
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