TERRYTOWN, N.Y. - The liability insurance crisis in New York has prompted a large group of bus operators to explore the idea of forming a new state motorcoach association.

About 70 people, representing upwards of 45 operators, met here late last month to discuss critical issues they are facing, including the insurance crisis which forces New York operators to pay three times the national average for auto liability coverage. Annual rates of $21,000 and more per bus are commonplace. During the past five years, insurers have abandoned the New York market in droves.

Privately, many of the coach executives who attended the meeting expressed disappointment with the performance of the Bus Association of New York, commonly known as BANY, in representing the industry and going to bat for it in Albany, the state capital. BANY has been operating in the Empire State for 65 years.

BANY's membership is composed of intercity, charter, tour, transit and commuter companies. But critics say it is effectively dominated by line-haul carriers and the seven coach companies that contract with New York City Transit to provide commuter service in and out of Manhattan.

The meeting was organized by Stuart Weisberg, president of One If By Land Tours, a charter and shuttle operator based in Flushing, a section of Queens. Among those attending were Victor Parra, president and CEO of the United Motorcoach Association, and Peter Pantuso, president and CEO of the American Bus Association. A handful of BANY members also were in attendance, including three directors.

"There are three companies left that will insure operators in New York," said Weisberg. "My insurance went up 21 percent last year and 29 percent this year." Whether Weisberg will be able to get insurance next year is an open question; his insurer is considering pulling out of New York.

The insurance crisis in New York is being driven by a number of factors, including a very aggressive personal liability bar, the absence of meaningful tort reform, insurance fraud (see related story on Page XX), an increase in the number of crashes in recent years, the turmoil in the reinsurance market and, most importantly, outsized and out-of-control jury awards. The Bronx borough of New York City reportedly has become the worst place in the U.S. to be a defendant in a liability case.

Easy fixes are nowhere to be found.

There has been discussion of setting up a new captive insurance company for New York operators, but that may not be realistic because of state laws making it both a costly and rigorous process.

The state insurance fund in New York also offers no help - it's bankrupt. One operator who contacted the fund about coverage was quoted a price of $65,000 per coach.

This past spring, a number of operators mounted individual efforts to get their complaints heard by state officials.

In March, two operators who are directors of the UMA, joined with a church-affiliated operator to meet with a group of state lawmakers. The following month, a delegation of operators, insurers and staff members from the ABA met with New York Superintendent of Insurance Gregory V. Serio and state Sen. Malcolm Smith.

Frustration among operators is growing as financial pressures mount and they see no relief from state lawmakers. There also is a perceived absence of activity and leadership on the part of BANY.

Weisberg believes a majority of those attending the meeting want to form a new association. "We're not looking to start a new organization if we don't have to," he says. "But many people don't see much hope for reforming BANY."

A key priority of BANY or a new group, said Weisberg, should be to work to bring more tourism business to New York and promote the state as a travel destination. "If we get the utilization of equipment up then the cost of insurance is not as much of a factor," he said.

The next step is for Weisberg to pick a committee from those attending the meeting to meet with members of the board of BANY.