Railroad Protective Liability Insurance

What is railroad protective liability insurance? 

Railroad protective liability (RRP) insurance is required of contractors who perform work on or around railroad tracks, railroad right-of-way or owned railroad property. RRP insurance protects the railroad company from liability claims due to contractor work. 

Travelers construction offers this coverage to contractors on an admitted basis. It's available to Travelers construction customers and as a stand-alone policy. Travelers can provide RRP coverage to a contractor, even if the general liability coverage is not written by Travelers. 

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Why do you need railroad protective liability coverage?

Construction and demolition operations along a railroad's right of way have the potential to disrupt or even damage railroad operations. Because of this, railroads often require a contractor to assume the railroad's liability. Railroad protective liability coverage protects railroads from potential financial risk and hazards. A standard commercial general liability policy will not be adequate if your job site is near a railroad, as work within 50 feet of a railroad's property is specifically excluded. 

Railroad insurance product features

What is covered?

RRP product features: 

  • ISO coverage form required by the Railroad Insurance Management Association (RIMA) 
  • Occurrence basis outside the limits 
  • Admitted market-based, with deductibles generally not required 
  • Job/term-based policies instead of annual coverage 
  • Typical limits of $2/6 million and $5/10 million (higher limits available) 
  • A minimum premium of $2,500 

What is covered by your RRP policy? 

  • Third-party bodily injury and property damage resulting from the designated contractor's work for which the railroad could be held liable 
  • Physical damage to the railroad's property 
  • Defense expenses outside the policy limits 

What is not covered by a railroad protective insurance policy?

The RRP policy cannot replace a comprehensive CGL policy, as it does not cover all the contractor's activities or operations. The railroad is the named insured party on the railroad protective liability coverage. It covers only ongoing operations at a specific job location designated in the policy's declarations page. Completed operations are not covered.

Who is covered by railroad protective liability insurance? 

The RRP policy protects a railroad from liability it incurs because of the work of the designated contractor on or near the railroad right of way. This covers the railroad entity when it comes to physical damage to the railroad's property. Railroad protective liability insurance also covers third parties who sustain injury or property damage the railroad could be liable for that was caused by the contractor's work. It does not cover the contractor. 

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What information do insurance companies need? 

When you apply for an RRP insurance policy, you'll need to be specific about the job location and details of your intended work in order to ensure an accurate underwriting assessment and a complete policy declaration. This will help ensure the railroad potentially affected by your work is adequately protected and, therefore, that you've met this requirement to perform the work. 

Service and quoting for railroad insurance

Our goal is to provide 24-hour turnaround time and superior service.

For more information about our railroad protective liability insurance, or other construction coverage from Travelers, please contact an independent construction insurance agent, broker or surplus lines broker.

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