Quebec train disaster spawns multiple claims

The train explosion in Lac-Mégantic, Quebec in early July created a wave of homeowner, auto and commercial insurance claims as adjusters, insurers and brokers descended on the scene to aid victims of the tragedy.

In the early morning hours of July 6, a Montreal Maine and Atlantic (MM&A) Railway train carrying 72 carloads of crude oil derailed in Lac Mégantic, near the U.S. border about 100 kilometres east of Sherbooke. Reports indicate that 47 people have been confirmed dead.

About 30 homes and businesses were completely destroyed following the explosion last Saturday, according to Cunningham Lindsey. The firm deployed adjusters from the Montreal Commercial Risk Division (CRD) in response to a number of significant commercial property and liability claims that have resulted from the disaster.

“As the investigation continues, access to the area has been highly restricted,” the firm said in a statement. “Our adjusters are at the scene assessing the damages and working with the provincial authorities who are in control of the site.”

EFI Global, the company’s forensic engineering, fire and environmental services subsidiary, is also on standby to deal with any environmental claims.

Crawford and Company (Canada) Inc. has also been in contact with its clients and has deployed staff from its Global Technical Services (GTS) group as an initial response to the disaster. It also has a team of adjusters standing by ready to assist when needed, it said in a statement.

The Insurance Bureau of Canada deployed its Community Assistance Mobile Pavilion (CAMP) unit, which provides disaster victims with insurance-related information.

There are no estimates to date of the total insured loss of the event, although insurance companies are releasing individual numbers. Intact Financial, for example, said in a statement that the train derailment will result in a $25 million impact to the company’s third quarter results.

Meanwhile, MM&A Railway filed for bankruptcy protection in Canada and the United States on August 7. The company is still working on insurance coverage-related issues.