TLC insurance for fleets after the ATIC collapse: what changed, what to ask a broker

What happened at American Transit Insurance

American Transit Insurance Company, known in the industry as ATIC, has written commercial auto liability coverage for New York City taxis, black cars, and other for-hire vehicles for more than fifty years. In September 2024, Insurance Journal reported that the company was insolvent, citing more than $700 million in net losses in a single quarter that year, and that its policies covered roughly 60 percent of the city's commercial taxi and for-hire vehicle market. That share is large enough that the company's financial condition is not only that company's own concern; a carrier covering most of an industry's fleets affects the market a broker can actually offer, not only the policyholders already on its book. The New York Department of Financial Services was quoted at the time saying it was working with the company and other stakeholders "to address these longstanding financial issues, and protect drivers, passengers and the stability of the New York livery insurance market."

ATIC disputed the characterization of its conduct. In its own public statement the following day, the company said it had "consistently paid all of its financial obligations, including verified claims and expenses, and continues to do so," while acknowledging it was "working tirelessly to address a longstanding issue of statutory solvency." The company's statement pointed to "rampant insurance fraud and escalating costs" as the cause, and said it was "working closely with industry participants towards a solution."

What has, and has not, happened since

As of this writing, the state's own company directory still lists American Transit Insurance Company as licensed in New York with current writing powers, meaning it remains authorized to issue and renew policies. It has not been placed into rehabilitation or liquidation. That has not meant a quiet stretch: reporting through 2025 and into 2026 has continued to describe the company's finances as under continued strain rather than resolved, and in March 2026 Insurance Journal reported that a federal judge had ruled ATIC failed to defend Uber, as its policies obligated it to, in a set of crash lawsuits, and ordered it to cover Uber's defense costs in those cases.

None of that changes what is true today for a fleet holding or shopping a policy: ATIC remains an authorized New York carrier, and TLC accepts its FH-1 certificates the same as any other authorized carrier's. It also does not mean the situation is settled. The reporting cited here describes a company under sustained financial pressure over more than a year, not a single event with a clear resolution date, and that is worth knowing whether or not it changes a given fleet's decision about coverage.

What TLC still requires, no matter the carrier

Nothing about the situation at ATIC changes TLC's own coverage rules. Every for-hire vehicle still needs a current insurance certificate, the FH-1, on file with TLC, at or above the minimum liability level TLC sets for that vehicle's type and seating capacity. That requirement is about the certificate and the coverage level on file, not about which authorized carrier issued it.

Questions worth asking a broker

None of the above answers the question of which carrier is right for a given fleet. That decision sits with the owner and the broker, not with a general guide. What is worth asking directly, whatever carrier is on the table:

• Is this carrier's current financial rating, and who assigns it, something the broker can show in writing?
• What does the state's own company directory show for this carrier's license status today?
• How has the carrier actually handled recent, comparable claims: paid promptly, disputed, or litigated?
• If this carrier were placed into rehabilitation partway through the policy term, what happens to coverage already in force?
• Is there a market alternative for this exact vehicle type and seating capacity, and what does it cost against the current premium?