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Trains that Crashed Head-On Covered by Self-Insurance
By Michelle Logsdon - April 26, 2002

The two trains that collided in Placentia, CA April 23 were both owned by companies that were self-insured for liability losses. A mile-long freight train collided head-on with a commuter train, killing two passengers and injuring more than 250 others.

The freight train was owned by Fort Worth, Texas-based Burlington Northern Santa Fe Corp. (BNSF). The Southern California Regional Rail Authority owned the commuter train. The Rail Authority operates six trains in counties throughout Southern California under the name of Metrolink.

A spokeswoman for the National Transportation Safety Board said the two trains were on a collision course on the same track because the freight train failed to stop for a track-switching procedure. The Metrolink train was stopped on the track waiting for the track to switch.

The rail track was owned and operated by BNSF. The company owns a Vermont captive insurer called Santa Fe Pacific Insurance Co. According to spokespeople for both BNSF and Metrolink, the companies have excess liability coverage above undisclosed self-insured retentions.

 
 

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