Railroad Protective Liability Insurance in Vermont

T.S. Peck Insurance
Railroad Protective Liability Insurance Vermont

What is Railroad Protective Liability Insurance?

Performing contract work on or near railroad property presents a unique risk, as the work can potentially interrupt railroad operations. If a business interrupts the movement of trains or other operations, the business could be held responsible for any financial impact that the interruption has. Railroad protective liability insurance may offer contractors who work on or near railroads in Vermont protection against this specific risk.

Railroad protective liability insurance is a unique commercial insurance that only select businesses need. Because it’s so unique, businesses that need the coverage should work with an experienced agent who specializes in the coverage when looking for a policy.

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Client Testimonials

“I just wanted to take a moment to let you know how great I think Caroline Collins is. – Every time I call to update my policy(and I have updated it a lot over the years) Caroline has been nothing but amazing to deal with. She takes care of all my needs in real time which is amazing. She is very personable, always respectful, extremely knowledgeable, and just all around awesome to deal with. I truly enjoy dealing with her and think she is a huge asset to your business from where I sit.”

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Scott L.
Railroad Protective Liability Insurance Vermont

Does General Liability Coverage Extend to Work Performed Near Railroads?

While commercial general liability coverage protects against a range of risks, interruptions in railroad operations usually isn’t one of those risks. Most general liability policies exclude contract work that’s performed within a specific proximity (e.g. 50 feet) of a railroad’s lines, stations or other property.

Railroad protective liability coverage is generally designed to fill in this gap and normally covers work that commercial general liability excludes on account of this particular reason.

Do Contractors Who Purchase Railroad Protective Liability Coverage Need General Liability Coverage?

Railroad protective liability coverage typically to provide protection against a fairly narrow set of possible risks, and it’s not usually intended to replace general liability coverage. Most contractors who purchase railroad protective liability should keep their general liability in place.

What Businesses in Vermont Need Railroad Protective Liability Coverage?

The majority of businesses that perform contract work on or near railroad property in Vermont, including tracks, stations and railroad-owned land, need railroad protective liability coverage.

In most cases, businesses that must contract with a railroad in order to complete their work (regardless of whether the work is done for the railroad or another business) are required by the railroad to carry this coverage. Railroads often won’t issue contracts until a certificate of insurance proving that railroad liability coverage meeting the railroad’s minimum requirements is in place.

(A certificate of insurance is a document that shows insurance has been purchased. It’s commonly issued when a liability policy is taken out, and an agent can help obtain more copies if businesses need additional certificates.)

Who is the Named Insured on a Railroad Protective Liability Policy?

Although a railroad protective liability policy is typically purchased and paid for by a contractor, the named insured on a policy normally is the railroad company. This is because the policy is generally intended to cover financial losses that the railroad incurs if their operations are disrupted by a covered incident.

Railroad Protective Liability Insurance Vermont

How Long Do Railroad Protective Liability Policies Last?

How long a railroad protective liability policy remains in effect is determined by the individual policy’s terms and conditions. Often, coverage whenever one of the following conditions is met (whichever occurs first):

  • The policy’s set expiration date arrives
  • The work is completed
  • The contract terms are fulfilled

An agent can help businesses determine exactly what will trigger the expiration of their policy’s coverage.

What Factors Affect Railroad Protective Liability Policies’ Premiums?

Insurance companies consider many different factors when setting premiums for railroad protective liability policies. Some of the details that an insurer might look at include the:

  • Total cost of a project
  • Cost of work that occurs within close proximity to railroad property
  • Number of tracks near the working area
  • Number of freight and passenger trains that pass by on those tracks
  • Precise location of the covered project
  • Details of what exactly the project entails

How Can Businesses in Vermont Get Railroad Protective Liability Insurance?

For help insuring a project that’s taking place near railroad property in Vermont, contact the independent insurance agents at T.S. Peck Insurance. Our agents have helped many businesses find railroad protective liability insurance, and they have the expertise necessary to make sure your business gets a policy that provides the protection you need.

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T.S. Peck Insurance

For questions or concerns, please contact our independent insurance agents.

Office: 41 IDX Drive, Suite 135
South Burlington, VT 05403

Office: 158 Lake St,
St Albans, VT 05478