Railroad protective liability insurance

Railroad protective liability coverage is sometimes referred to as RRP insurance or RPL insurance. It is a project-specific policy that is taken out by contractors that are performing work around railway infrastructure.

While the contractor pays for the RRP policy, the coverage does not protect contractors themselves. Contractors buy this insurance in case they cause harm that the railroad could be found liable for. RRP coverage only extends to the railroad company as the named insured.

In this way, it’s very similar to owners and contractors protective insurance, or OCP insurance. In fact, contractors often buy both types of policies together to maximize coverage.

Construction work done near a railroad can be very precarious. Even small issues can severely disrupt the railway’s operations or create dangerous situations. It can also be very expensive.

Because of this, many railroads require contractors that have been awarded construction projects near railway operations to have railroad protective liability insurance. This policy protects the railroad from any acts or omissions of the contractor’s work.

General liability insurance, also called public liability insurance, is recommended for most small businesses. When it comes to this coverage for construction companies, many states require it. But if you are working in close proximity to a railroad right-of-way, commercial general liability (CGL) will not cover claims related to that job.

In fact, standard CGL insurance policies specifically exclude work performed within 50 feet of a railroad. RRP policies were created to address this coverage gap.

While RRP coverage may be an insurance requirement of the railroad, it should not be the only insurance coverage you have as a contractor. It’s important that you maintain your general liability insurance. That’s because your CGL policy will protect you from lawsuits, while railroad protective liability insurance only protects the railroad.

Additionally, RRP coverage is limited to the specific jobsite, the work being done, and the project start and end dates, as indicated on the policy declarations page. Any claim that falls outside those parameters will be denied.

With that in mind, railroad protective liability coverage does not and should not replace a general liability policy—it should supplement it. To this end, along with the RRP policy, you can include an endorsement to your CGL policy that names the railroad company as an additional insured. That rider could offer the railroad added protection. However, it will increase your general liability premium.

As a contractor, there are many other types of insurance products on the market that are designed for your particular occupation. Tools and equipment, equipment floater, contractors pollution liability, and builder’s risk coverage are various kinds of construction insurance that you might consider.

You can speak with an insurance agent to determine if you need both general liability and railroad liability coverage. They'll help you find the most affordable option to meet the needs and budget of your small business.

Because an RRP liability policy insures the railroad, you’ll need to provide some information about the rail operations, in addition to answering the standard insurance questions. This can include:

• Detailed project description of the work being done
• Specific job location
• Total job cost and cost of work done within 50 feet of railroad property
• Estimated start and end dates
• Daily train traffic (freight and passenger)

Be aware that some insurance companies automatically decline what they consider dangerous operations, such as using explosives, fireworks, or blasting methods. They may also exclude work involving hazardous chemicals or underground work, like subways, mines, and tunneling. Underwriters could view these liability exposures as too high to cover.

Insureon makes it easy to apply for insurance quotes online. If you need any help with the application, one of our expert agents can assist. We’ll gather rates from respected insurance providers across the country and send you your options. After you choose a plan, you can typically start coverage within 24 hours. You’ll also be able to access paperwork, such as your certificate of insurance (COI), online.