MEMORANDUM
Finance and Administration Committee
TO:
FROM:
Director of Finance Administration and Partnerships Betty Conners Manager-Asset Control and Damage Recovery Lynn Fry
SUBJECT:
Bridges and Tunnels Property Insurance Renewal
December 4, 2025
DATE:
PURPOSE OF MEMORANDUM
To provide the Maryland Transportation Authority (MDTA) Finance and Administration Committee with an overview of the insurance policies at MDTA along with an update of the Bridges and Tunnels Property Insurance Policy renewal limits change.
SUMMARY
The Trust Agreement requires that the MDTA maintain a comprehensive insurance program, which at its own discretion determines the adequacy and affordability of the insurance protection. It is the CFO's responsibility to ensure the financial stability of the MDTA and determine the adequacy of the insurance program. In past years, MDTA's Property Insurance for Bridges and Tunnels had a policy limit of $350 million; however, very recently, the State Treasurer’s Office advised that other State agencies are raising their insurance policy limits primarily to mitigate rising values due to inflation. To be consistent throughout the state and in response to rising property values, the MDTA’s senior management, including the CFO, determined that it was in the best interest of the agency to increase limits to $500 million. This decision had to be made with urgency to meet the December 1, 2025, renewal deadline for Property Insurance for Bridges and Tunnels.
➢ With the recent renewal on December 1, 2025, policy limits of the MDTA Bridges and Tunnels Property insurance have increased to $500 million from $350 million.
➢ This increase in the policy limits results in a premium increase of $1,063,142 that will be incorporated into the fiscal 2027 Operating Budget. The 30 days and $50 million deductible for loss of revenue was unchanged.
2310 Broening Highway • Baltimore, MD 21224 • mdta@mdta.maryland.gov • 410.537.1000 • 711 (MD Relay) • mdta.maryland.gov • DriveEzMD.com
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