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Do You Need Railroad Protective Liability?

Do You Need Railroad Protective Liability?

In most cases, when a business purchases insurance, the coverage protects that business. If coverage extends to another party, it is often done by endorsement, such as an additional insured form. There is at least one case where this isn’t true: Railroad Protective Liability (RRPL). As the name states, these policies are related to railroads. Coverage is purchased by a contractor but the coverage is for the railroad. What Is Railroad Protective Liability? Railroad Protective Liability insurance is coverage that was designed by railroads and the insurance industry. It protects railroads from liability they incur due to the work of contractors on or near a railroad line or right-of-way. This includes work on or near a train station, the tracks, on land owned by a railroad, and within 50 feet of any railroad property. Do You Already Have RRPL? If you already have Commercial General Liability (CGL) insurance, you may think that it will cover you anywhere you do work. However, work on or near railroads is specifically excluded by excluding contractual liability for anything related to railroads. This is the portion of the Commercial General Liability Coverage Form (CG 00 01 04 13) that relates to insured contracts: What does this mean? If your work contract is with a railroad or includes work on or near railroad property, you have no coverage if the claim is railroad-related. Bottom line: you need RRPL in these situations. What Makes RRPL different? RRPL is a policy that is meant to cover the gaps in the CGL policy relating to railroads. The coverage is typically purchased by the contractor, but the named...