RESEARCH PAYS OFF--WISCONSIN DOT SAVES ON TRANSIT INSURANCE

With funding from the Urban Mass Transportation Administration, the Wisconsin Department of Transportation commissioned the Newport Beach, California, firm of Warren, McVeigh and Griffin to undertake a risk management research study to evaluate insurance coverages, procurement methods, and loss control activities and to make recommendations for improved management practices. Study findings were as follows: (a) there is insufficient competition during the procurement process; (b) transit managers should be more involved in the procurement process; (c) specifications for coverage should be improved; (d) safety engineering programs and services provided by insurance agents should be improved; and (e) group insurance programs should be investigated. To implement the recommended changes, 12 systems established the Wisconsin Municipal Transit Insurance Commission. The Commission's objectives were to jointly purchase liability and physical damage insurance and to improve the transit systems' risk management programs. The benefits of the new common procurement of insurance have been substantial. In the first year an aggregate savings of 47 percent of current premium rates was realized by the group. This amounted to a savings of $255,000 in annual insurance premiums.

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  • Corporate Authors:

    Transportation Research Board

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  • Publication Date: 1984-1

Media Info

  • Pagination: p. 12-13
  • Serial:
    • TR News
    • Issue Number: 110
    • Publisher: Transportation Research Board
    • ISSN: 0738-6826
  • Publication flags:

    Open Access (libre)

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Filing Info

  • Accession Number: 00385224
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: May 30 1984 12:00AM