About CBIZ McRail

Railroad Protective Liability is a separate, project-specific liability policy that protects the railroad against third-party bodily injury and property damage claims while work is being performed on its premises by a specific contractor. It’s designed to protect the railroad from liability that arises due to a contractor’s operations on or near railroad property/right-of-way — often including coverage for certain damage to the railroad’s property as well. We are happy to help in any way we can with an upcoming bid or questions you might have regarding a specific job. 

The contractor’s Commercial General Liability (CGL) policy will typically cover work around railroads IF the contractor is sued directly. However, it is common for a railroad to require the contractor to indemnify the railroad via contract. Unendorsed, the CGL policy does not cover that type of indemnification obligation for construction work performed within 50 feet of a railroad. Whether your CGL policy covers this work or not, a railroad may still require a Railroad Protective policy as additional protection for possible claims caused by the construction work being performed. 

Positive Train Control (PTC) can indirectly influence your insurance, so it’s important to speak with an advisor who is familiar with those potential impacts. Our team is available to discuss our experience with PTC and insurance.   

These contractual requirements can sometimes be found online. If not, you can reach out to the railroad directly to learn more about common contractual requirements or contact our team for general or preliminary conversations regarding common industry practices.

While rail is a key player in the transportation sector, it’s still considered a niche industry. The insurance side of the industry is niche as well. There are limited insurance companies serving railroads, as well as limited insurance brokers and risk managers. It’s important to partner with advisors who are deeply familiar with the industry, and our team is ready and willing to hop on a call and talk shop.

This depends on the risk appetite a company or organization is willing to take on. Rail insurance policies are typically on a self-insured retention (SIR) basis. In other words, the insured (you) pays the SIR before the insurance company pays. The higher the SIR, the more responsibility on the railroad/organization.

FELA is the Federal Employers’ Liability Act, a law that covers railroad employees and their work-related injuries. Insurance coverage for employers/railroads whose employees are subject to FELA is commonly available and can be structured in a variety of ways, depending on your organization.