Working with Railroads Requires Special Coverage

Tue, 10 May 2011 13:40:00 GMT

Despite the economic downturn, some professional service firms are keeping busy on railroad-related projects. Usually, an engineer or surveyor is involved with providing services that require access to the railroad’s right-of-way. At times, even architects and landscape architects have projects that involve railroad land. The standard contracts used invariable call for Railroad Protective Liability (RPL) coverage. Many design firms—and at times their insurance representatives—are confused about this coverage.

Railroads are subject to the federal laws creating strict liability for harm that results on their rights-of-way. Therefore, federal entities always pass on their risk on to anyone entering upon the property for any work or services. RPL coverage addresses this requirement. Through RPL coverage the independent contractor such as a professional firm assumes the cost of the railroad's liability resulting from the contractor's work. The RPL policy is issued in the name of the railroad and no coverage is included for the firm providing the services on the right-of-way. Coverage applies to the work and job site and only until the work is complete. RPL is similar to owners and contractors protective liability coverage except RPL includes railroad contractual and Federal Employer's Liability Act coverage. There is coverage for liability for bodily injury and property damage to third parties and physical damage to railroad property.

Firms that carry both professional liability and their commercial general liability through Schinnerer can obtain an endorsement to the commercial general liability coverage that includes the RPL project-specific obligation. Firms insured through Schinnerer for their professional liability coverage can obtain through Schinnerer special coverage – known as monoline coverage – that provides Railroad Protective Liability insurance for the specific project. For more information, go to www.schinnerer.com/industries/railroad/Pages/Railroad-Homepage.aspx.

Schinnerer's RM Blog - railroads tag

Working with Railroads Requires Special Coverage