RICHFIELD, Ohio, Oct. 7, 2009 (GLOBE NEWSWIRE) -- National Interstate Insurance Company, a leading provider of alternative risk transfer insurance, announced it has entered the railroad insurance market through a partnership with U.S. Rail Insurance, Inc. RRG. The U.S. Rail Liability Program is an alternative risk management solution available for shortline, regional, and rail affiliated companies throughout the United States. Targeted companies include freight, scenic, rail museums, railroad associations, railroad service companies, railroad protective, and railroad equipment lessors and lessees. The program is administered by United Shortline Insurance Services, Inc. and insurance coverages are offered jointly by
National Interstate and U.S. Rail Insurance Company, Inc. In addition to liability, other coverage lines are also available outside of the alternative risk structure through both carriers. National Interstate and U.S. Rail developed this specialized insurance program designed for best-in-class railroad companies with a commitment to safe operating practices. This unique risk management solution offers many long-term benefits not available through traditional insurance including stable annual insurance premiums, potential return of premium, and enhanced customer service and claims handling.
"National Interstate is extremely pleased to partner with U.S. Rail Insurance Company to bring this innovative insurance program to the railroad industry," said Dave Michelson, President of National Interstate Insurance Company. "We believe this is an excellent opportunity for railroad companies to capitalize on their positive safety records, and realize the many benefits available only through alternative risk management. National Interstate is also excited to add yet another market to our growing captive business which targets specific areas of the transportation industry. We now manage over 27 captive insurance programs representing over 60% of our business as of June 30, 2009."
"U.S. Rail and United Shortline Insurance Services have brought to this important industry a 'New Train of Thought' on how the shortline railroad industry handles its risk management," said Louis M. Schillinger, Chief Executive Officer of United Shortline Insurance Services, Inc. "For the first time in history, a shortline owned, managed, and financed insurance company is focusing its resources on the railroad industry it services with a program designed to provide stable costs and customized coverages for the foreseeable future. Our relationship with National Interstate enhances our program as we are now able to offer customers the added strength of an 'A' rated carrier with over 20 years of expertise in transportation and specialty insurance while maintaining the unique opportunity for the policyholders to own a share of U.S. Rail with each policy."
About National Interstate
National Interstate Insurance Company, a wholly owned subsidiary of National Interstate Corporation (Nasdaq:NATL), is a specialty property and casualty insurance holding company with a niche orientation and focus on the transportation industry. We differentiate ourselves by offering insurance products and services designed to meet the unique needs of targeted insurance buyers. Our products include insurance for transportation companies, alternative risk transfer, or captive insurance programs for commercial risks, specialty personal lines consisting of insurance products focused primarily on recreational vehicle owners and small commercial vehicle accounts, and transportation and general commercial insurance in Hawaii and Alaska. We offer our insurance products through multiple distribution channels including independent agents and brokers, affiliated agencies and agent Internet initiatives. Our insurance subsidiaries are rated "A" (Excellent) by A.M. Best Company. Founded in 1989, we are headquartered in Richfield, Ohio with operations in Honolulu, Hawaii, Mechanicsburg, Pennsylvania, and St. Thomas, Virgin Islands.
About U.S. Rail Insurance Company, Inc.
U.S. Rail Insurance Company, Inc. RRG, a Vermont domiciled insurance company and licensed as a risk retention group in 44 states, is the first shortline railroad owned and managed insurance company in railroad history. With its risk sharing partner, National Interstate, it represents the only admitted carrier offering railroad coverage in the U.S. U.S. Rail is a non-assessable stock insurance company, reinsured with "A" rated reinsurance to a maximum limit of $25,000,000, was licensed in 2007, and founded by United Shortline Insurance Services, Inc. a 24 year veteran of the shortline railroad industry. United Shortline's executive team serves as President and CFO of U.S. Rail with railroad owners managing the company through its Board of Directors. Visit www.usrailinsurance.com for more information.