Florida Passes Key Rail Bill, Settles Insurance and Indemnity Questions for Brightline

Florida lawmakers have just finished drafting a statute to sort out who pays when accidents happen on the commuter line that will soon run up and down the Coastal Link route. That stretch of track-the same one Brightline and FECR inherit through Miami-Dade, Broward, and Palm Beach-is where the new ground rules are meant to take effect.

On July 1, a new law known as the Coastal Link Commuter Rail Service Act kicks in. It gives public agencies a way to handle indemnity duties by letting them buy insurance for commuter rail operations in the Brightline corridor.

The measure lets state and local authorities agree to indemnify Brightline or FECR for costs linked to accidents that involve the agencys own passengers and anyone else the law calls rail-corridor invitees.

The protection kicks in no matter how much fault lies with the freight operator. For what the statute labels a limited covered accident-a train-on-train collision prompted by willful misconduct-any indemnity obligation above a $5 million self-insurance retention kicks in only if the private operator matches that amount.