1. The railroad is the named insured on the policy. Contractors purchase it for the benefit of a railroad. 2. It is primary. It is the first layer of coverage and can be augmented by a CGL policy, or an umbrella or excess policy. 3. It is narrow in coverage. It applies only to a specific site where work is to be performed. 4. It is narrow in scope. It applies only to work [...]
ISO has recommend changes to certain of its insurance forms effective April 2013. Form CG 00 35 04 13 addresses Railroad Protective Liability Coverage. The new change includes broader language for losses relating to fuels and lubricants. Any railroad requesting Protective Liability coverage should consider using this new form - in lieu of the old one. In the old version, last revised in 2000, a standard ISO Railroad Protective Liability Policy [...]
There are three essential steps to railroad risk transference through insurance: 1. Add an indemnity clause to all contracts making clear that you are asking for indemnity for the contractor's or vendor's negligence. If you do intend to seek indemnity for the railroad's negligence too, this language needs to be clear and unequivocal in order to adhere to most states' requirements. Not all states allow exculpatory indemnity. (I will write more about this later. [...]
Railroad protective liability insurance is a unique product to the rail industry. Contractors and vendors purchase it to protect their railroad clients. In fact, almost all railroads require some type of insurance before they will allow work to be done by others on their property. Railroad protective liability insurance is a common product used to satisfy the requirements of a railroad risk transference program. Congress has also mandated the use [...]
