Something I didn’t know about MTA:
In Con Ed’s case, the utility carries insurance policies that may cover it for the inevitable lawsuits over business interruption, structural damage from exploding transformers, and similar blackout-related losses.
In the case of an institution like the MTA or the Port Authority, there is insurance in place but the extent of it may not be sufficient.
The MTA maintains a so-called captive insurer, or insurance company that it set up itself for its own needs, called First Mutual Transportation Assurance Co.
A 2010 examination of First Mutual conducted by New York regulators indicated that it had about $1 billion in reinsurance lined up for property claims. But once that money runs out, someone else has to step in.
Makes me wonder about SEPTA and other transit authorities.