D.C. Metro Sues Insurer Lexington Over Lost Revenue

Washington Metropolitan Area Transit Authority recently filed a lawsuit against its insurer Lexington Insurance Co. of Boston charging that that the insurer failed to indemnify for the revenue losses in the train system’s ridership following a 2009 crash that killed eight passengers.

Metro is seeking to recoup $13 million from Lexington. The complaint was filed last month in U.S. District Court for the Eastern District of Virginia, the court clerk’s office told Insurance Journal. The news of the lawsuit was first reported by The Washington Examiner, a local daily in the Washington, D.C. metro area.

According to the court document, Metro has suffered falling ridership and consequential loss of revenue because of the June 2009 crash that killed a train operator and eight passengers and injured scores more. Metro estimates 6 million rides were lost following the accident. (Fares range from $1.95 to $5.) The system is still not restored to normal operations.

Metro said it paid $1.86 million in premium for up to $50 million of coverage per incident, according to The Washington Examiner. So far, Lexington has paid out $1.21 million in claims related to the crash, it said.