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Railroad Insurance: Cost, Liability, and Quotes From $40/mo

Table of contents
1. General Liability Insurance for Railroads1.1. Coverage Limits1.2. Situations where railroad companies can use general liability insurance1.3. Is Railway Public Liability Insurance the Same as General Liability Insurance?2. Professional Liability Insurance for Railroads2.1. Coverage Limits2.2. General Liability Insurance vs. Professional Liability Insurance3. Railroad Protective Liability Insurance3.1. Coverage Limits3.2. What Does Railroad Protective Liability Insurance Cover That is Excluded From Commercial General Liability Policies?4. Railroad Environmental Liability Insurance4.1. Coverage Limits4.2. Some Situations Where Railroads Can Use Environmental Liability Insurance4.3. What Are Some Common Examples of Environmental Risks That Railroads May Face?5. Railroad Employer’s Liability Insurance5.1. Coverage Limits5.2. Situations You Use Railroad Employer’s Liability Insurance 6. Railroad Tools and Equipment Insurance6.1. Coverage Limits6.2. What Types of Tools and Equipment Are Covered Under Railroad Tools and Equipment Insurance?7. Railroad Business Owner’s Policy7.1. Coverage Limits8. Railroad Builders Risk Insurance8.1. Coverage Limits8.2. Situations  Railroad Builders Risk Insurance Can Be Useful8.3. What Types of Events Are Typically Covered Under Railroad Builders Risk Insurance?9. Railroad Rolling Stock Insurance9.1. Coverage Limits9.2. Situations Where Railroads Can Use Railroad Rolling Stock Insurance10. Workers Compensation Insurance for Railroads10.1. Coverage Limits10.2. What is the Process for Filing a Workers Compensation Claim for Railroad Employees?11. Railroad Insurance Cost11.1. Are There Any Ways for Railroad Companies to Reduce Their Insurance Costs? 12. Best Railroad Insurance Companies12.1. NEXT Railroad Insurance 12.1.1. Pros12.1.2. Cons12.2. CoverWallet Railroad Insurance 12.2.1. Pros12.2.2. Cons12.3. Travelers Railroad Insurance 12.3.1. Pros12.3.2. Cons12.4. Zurich Railroad Insurance 12.4.1. Pros12.4.2. Cons12.5. Thimble Railroad Insurance 12.5.1. Pros12.5.2. Cons12.6. BRCF Railroad Insurance 12.6.1. Pros12.6.2. Cons12.7. Railroad Marketing Insurance 12.7.1. Pros12.7.2. Cons

Railroads have been a crucial mode of transportation for centuries, transporting goods and people across the country. However, with the inherent risks involved in the operation of railways, it is crucial to have proper railway insurance coverage to protect against any unexpected incidents.

In 2020, there were a total of 1,703 train accidents in the United States, resulting in 131 fatalities and 1,140 injuries. These numbers underscore the importance of having adequate railroad insurance coverage.

This article will provide readers with an in-depth overview of railroad insurance, including the types of coverage available, coverage limits, and the cost of obtaining insurance. We will also quickly explain a related insurance policy called railroad protective liability coverage



General Liability Insurance for Railroads


CoverWallet NEXT (Best)Thimble 
Per occurrence limit $1,000,000$300,000/$1,000,000$1,000,000/$2,000,000
Aggregate limit $2,000,000$1,000,000/$2,000,000$1,000,000/$2,000,000
Products and completed operations aggregate limit 
$2,000,000
$1,000,000$1,000,000
Advertising injury coverage aggregate limit $1,000,000$1,000,000$1,000,000
Tenant’s legal liability coverage limit 
$1,000,000
$100,000$5,000
Waiver of subrogation included?YesNoIncluded
Hired/non-owned auto liability coverage included?YesNoExcluded
Equipment breakdown floater included?No YesYes
Can you get a certificate of insurance online?YesYesYes
Name additional insureds?YesYes
Yes
Deductible$0$0$0


General Liability Insurance is an essential coverage for railroad companies as it protects them against third-party claims of bodily injury or property damage resulting from their operations. However, it's important to note that there's a railroad exclusion CGL policy that may not cover incidents that arise out of the ownership, maintenance, or use of railroad equipment or facilities. Therefore, it's crucial to carefully review your policy and any exclusions that may apply to ensure that your railroad company is adequately protected.


Coverage Limits

Coverage LimitsAmount
Bodily Injury and Property Damage Liability$1 million per occurrence / $2 million aggregate
Products and Completed Operations Liability$1 million per occurrence / $2 million aggregate
Personal and Advertising Injury$1 million per occurrence / $2 million aggregate


Situations where railroad companies can use general liability insurance

Some situations where railroad companies may need to use general liability insurance include:

  • Employees causing property damage while repairing or constructing a railway

  • Accidents that happen in the railway such as explosions or release of debris that result in injuries to third parties


Is Railway Public Liability Insurance the Same as General Liability Insurance?

Railway public liability insurance also covers claims for bodily injuries or property damage just like general liability. However, it doesn’t have the add-ons usually found in a general liability policy. 


Professional Liability Insurance for Railroads


CoverWallet NEXT Thimble (Best)
Per occurrence limit $1,000,000$1,000,000$1,000,000/$2,000,000
Aggregate limit $2,000,000$2,000,000$1,000,000/$2,000,000
Name additional insureds?YesYesYes
Waiver of subrogation included?YesNoYes
Deductible $500$500$500


Professional liability insurance for railroads, also known as errors and omissions insurance, is a type of insurance that provides coverage for claims arising from a failure to perform professional duties or services properly. Other perils covered are negligence, breach of contract, violation of good faith, and violation of fair dealing. 


Coverage Limits

The limits of this railroad liability insurance may range from $1 million to $10 million or more, depending on the size and needs of the business.


General Liability Insurance vs. Professional Liability Insurance

Insurance TypeCoverage ProvidedClaims Covered
General Liability InsuranceBodily injury and property damageClaims arising from accidents or incidents involving third parties
Professional Liability InsuranceProfessional services or dutiesClaims arising from errors, omissions, or negligence in the provision of professional services or duties


Railroad Protective Liability Insurance

This railway insurance coverage protects a railroad company against the financial hazards associated with a contractor’s work on a railroad or railroad right of way.  Railroad protective liability insurance is bought by a contractor and not the railroad. However, the latter enjoys the protection and not the former. 

For example, if a contractor works with BNSF railway, then he must get BSNF railroad protective insurance that grants $1,000,000-$2,000,000 worth of liability coverage should something happen. 


Coverage Limits

Railroad protective liability insurance cost typically ranges from $5 million or more per occurrence and an aggregate limit of $10 million or more.


What Does Railroad Protective Liability Insurance Cover That is Excluded From Commercial General Liability Policies?

Railroad protective liability insurance provides coverage for damages arising out of railroad operations that are excluded under commercial general liability policies, such as damage to railroad tracks, signals, and communication lines, as well as derailments and collisions involving third-party property.


Railroad Environmental Liability Insurance

Railroad environmental liability insurance protects railroad companies from environmental liabilities related to their operations, covering damages or cleanup costs arising from pollution or other environmental hazards.


Coverage Limits

The coverage limits for railroad environmental liability insurance vary based on the specific policy and risks associated with the railroad's operations. Factors that can influence coverage limits include the size and scope of the railroad's operations, the types of materials transported, and the potential for environmental damage.


Some Situations Where Railroads Can Use Environmental Liability Insurance

  • Accidental spills or releases of pollutants during loading or unloading activities

  • Damage to property or equipment caused by environmental hazards


The average annual premium for environmental liability insurance for transportation companies, including railroads, is around $50,000. 


What Are Some Common Examples of Environmental Risks That Railroads May Face?

Railroads face a variety of environmental risks that can result in pollution or damage to natural resources, including:

  • Fuel and oil spills from locomotives or other equipment

  • Accidents involving hazardous materials being transported by rail


Railroad Employer’s Liability Insurance

This insurance protects railroads from lawsuits by employees who are not covered under Workers Compensation insurance and are injured or become ill due to work-related activities.

Coverage Limits

Coverage Limits for Railroad Employer's Liability InsuranceDescription
Per-Incident LimitsMaximum amount the railway insurance policy will pay out for a single incident or claim
Aggregate LimitsMaximum amount the policy will pay out for all incidents within a certain period


Situations You Use Railroad Employer’s Liability Insurance

This insurance can provide coverage for situations such as negligent supervision, Federal Employers Liability Act (FELA) claims, occupational diseases, and third-party claims. Having this insurance can help cover the costs of defending against claims and paying damages if the company is found to be at fau


Compare Cheap Railroad Insurance Quotes Online

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Railroad Tools and Equipment Insurance


NEXTThimble
Aggregate limit$3,000/$10,000$2,500/$5,000
Covers hired and borrowed equipment?$5,000/$10,000$2,500/$5,000
Miscellaneous equipment also covered?$5,000/$10,000No
Offered as an endorsement to general liability insurance?YesYes
Deductible$500$500


This railroad insurance policy covers damage or loss to railroad tools and equipment. The insurance can be purchased by railroads or by companies that provide railroad-related services.


Coverage Limits

Coverage limits for railroad tools and equipment insurance vary depending on the specific policy and the value of the insured tools and equipment. Some policies may have a per-item limit, while others may have an aggregate limit for all covered items.


What Types of Tools and Equipment Are Covered Under Railroad Tools and Equipment Insurance?

Railroad tools and equipment insurance can cover a wide range of tools and equipment used in railroad operations, including hand tools, power tools, welding equipment, jacks, and cranes, among others.


Railroad Business Owner’s Policy


CoverWalletThimble NEXT Hiscox (Best) 
General liability aggregate limit $2,000,000$1,000,000/$2,000,000$25,000$300,000/$2,000,000
Commercial property coverage limit $50,000$25,000/$500,000$25,000$100,000
Optional policies can be added?YesYesYesYes
Name additional insureds for free?YesYesYesYes
BOP discount?YesYesYesYes


Railroad Business Owner’s Policy (BOP) is a type of insurance designed for small to medium-sized businesses that operate in the railroad industry. It combines several types of insurance coverages, including general liability, property, and business interruption, into one convenient policy.


Coverage Limits

The coverage limits for Railroad BOP may vary depending on the specific needs of the business. However, some common coverage limits include:

  • General Liability: $1 million per occurrence / $2 million aggregate

  • Property: $1 million per occurrence / $2 million aggregate

  • Business Interruption: $500,000


Railroad Builders Risk Insurance

This provides railroad fire insurance, storm insurance, explosion insurance coverage railroad construction project during the course of its development. This insurance is designed to protect railroad owners, contractors, and subcontractors from any losses that may occur due to unexpected events.

 

Coverage Limits

The coverage limits for railroad builders risk insurance vary depending on the size and complexity of the project.


Situations  Railroad Builders Risk Insurance Can Be Useful

If a staffing agency is involved in a railroad construction project, they may need to consider purchasing general liability insurance to protect against claims of bodily injury or property damage caused by their employees.


What Types of Events Are Typically Covered Under Railroad Builders Risk Insurance?

Railroad builder's risk insurance typically provides coverage for damages or losses caused by events such as fire, theft, vandalism, among others. It can also cover damages caused by earthquakes and floods if the coverage is specifically included in the policy.


Railroad Rolling Stock Insurance

This insurance covers physical damage and loss of railroad rolling stock, which includes locomotives, railcars, and other equipment used on the tracks. This insurance can provide coverage for damage caused by accidents, collisions, derailments, fire, theft, and vandalism.


Coverage Limits

The coverage limits for railroad rolling stock insurance may vary depending on the specific needs of the railroad company.


Situations Where Railroads Can Use Railroad Rolling Stock Insurance

If a staffing agency is involved in a railroad-related business and has employees working on or near the tracks, they may need to consider purchasing general liability insurance to protect against claims of bodily injury or property damage caused by their employees. 


Workers Compensation Insurance for Railroads

Workers Compensation Insurance for Railroads provides coverage for employees who suffer work-related injuries or illnesses. This insurance is mandatory for all employers in the railroad industry and is designed to provide benefits to employees who are injured or become ill due to their job.


Coverage Limits

Workers Compensation Insurance for Railroads provides coverage for medical expenses, lost wages, and other related costs that may arise from a work-related injury or illness. The coverage limits may vary depending on the specific policy and the state where the business operates.


What is the Process for Filing a Workers Compensation Claim for Railroad Employees?

The process for filing a workers compensation claim for railroad employees can vary by state and by railroad company. Generally, employees must notify their supervisor or human resources representative as soon as possible after the injury or illness occurs.



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Railroad Insurance Cost


Cost per MonthCost per YearMinimum Deductible
General liability insurance$50$600$500
Railroad Protective Liability Insurance$69$828$1,000
Railroad Environmental Liability Insurance$75$900$1,000
Railroad Employer's Liability Insurance$55$660$1,000
Railroad Rolling Stock Insurance$100$1,200$1,000
Workers' Compensation Insurance$200$2,400$1,000


The average railroad insurance cost is $50 per month or $600 per year for a $1 million general liability policy. Of course, this is just an estimated cost of one policy. Your final rate can be higher if you decide to purchase other business insurance we discussed.  

Railroad protective liability insurance cost $69 per month or $828 per year. Factors that affect rates are location, business history, claims history, and deductibles. You can get a further idea of the average railroad protective liability cost as well as other policies by comparing quotes. Start by clicking the “Get Quotes” button on this page. 

In connection, here’s a table showing the rates of the best companies:


Cost per MonthCost per YearBest for
NEXT$23$276Best overall; Fastest general liability insurance for railroads
CoverWallet$26$312Comparing railroad insurance quotes online
Travelers$30$360Established provider with a strong reputation
Zurich$33$396Specialized railroad coverage
Thimble$28$336Flexible payment options
BRCF$40$480Fast claims process
Railroad Marketing Insurance$55$660Disability insurance for railroads


Are There Any Ways for Railroad Companies to Reduce Their Insurance Costs?

Yes, there are several ways for railroad companies to reduce their insurance costs. One way is to improve safety protocols and implement risk management strategies to minimize the likelihood of accidents or other incidents that could result in insurance claims.



Compare Cheap Railroad Insurance Quotes Online

Get all the best quotes from leading providers in a click of a button!

Best Railroad Insurance Companies

Here are some of the best railway insurance companies. Read some of the reviews below to know their pros, cons, and average rate for a $1 million general liability policy:


NEXT Railroad Insurance

Pros

  • Comprehensive coverage options–NEXT Insurance offers a range of policies for railroads, including general liability, workers' compensation, and commercial auto coverage, which may suit the needs of many businesses in the industry.

  • Online policy management–They offer online policy management tools, which can make it easier for businesses to manage their policies.

Cons

  • Couldn’t find any

NEXT offers a range of policies for railroads, including general liability, workers' compensation, and commercial auto coverage. They also offer 24/7 customer service and online policy management, making it easy for businesses to get the coverage they need.

Best for: Best overall; Fastest general liability insurance for railroads

Average cost: $23 per month 

Our rating: 10/10


CoverWallet Railroad Insurance

Pros

  • Customizable policies–CoverWallet offers customizable insurance policies for railroads, including general liability, professional liability, and cyber liability coverage, which may suit businesses with specific needs.

  • Partnering with top insurance providers–CoverWallet partners with top insurance providers, which can provide businesses with access to high-quality coverage options.

  • Online policy management–They offer online policy management tools, which can make it easier for businesses to manage their policies.

Cons

  • Not an insurance company but an insurance broker

CoverWallet partners with top insurance providers to offer customizable railway employee insurance programs such as EPLI coverage, workers compensation, and more. They offer other overage options, such as general liability, professional liability, and cyber liability coverage.

Best for:  Comparing railroad insurance quotes online 

Average cost: $26 per month 

Our rating: 10/10


Travelers Railroad Insurance

Pros

  • Established provider with a strong reputation–Travelers is a well-established insurance provider with a long history of serving the railroad industry, which can provide businesses with peace of mind.

  • Wide range of coverage options–They offer a variety of policies, including general liability, property, and workers' compensation coverage, which can suit many different types of businesses.

Cons

  • Can be more expensive than other providers–While they have a strong reputation and offer a wide range of coverage options, their pricing may be higher compared to other providers.

Travelers is a well-established insurance provider with a long history of serving the railroad industry. They offer a variety of policies, including general liability, property, and workers' compensation coverage. They also have a 24/7 claims hotline for fast and easy claims processing.

Best for: Established provider with a strong reputation

Average cost: $30 per month 

Our rating: 9/10


Zurich Railroad Insurance

Pros

  • Specialized railroad coverage–Zurich offers specialized coverage for railroads, such as railroad protective liability coverage, which may suit businesses with unique needs

  • Comprehensive coverage options–They offer comprehensive insurance coverage for railroads, including general liability, property, and workers' compensation coverage

  • Online policy management–They offer online railroad protective liability policy management tools, which can make it easier for businesses to manage their policies

Cons

  • May not be the most cost-effective option for some businesses: While they offer specialized and comprehensive coverage options, their pricing may not be the most cost-effective for some businesses.

Zurich offers comprehensive railroad insurance coverage including general liability, property, and workers' compensation coverage. They also offer specialized insurance solutions, such as railroad protective liability coverage.

Best for: Specialized railroad coverage

Average cost: $33 per month 

Our rating: 8/10


Thimble Railroad Insurance

Pros

  • Flexible payment options–Thimble offers flexible workers' compensation coverage with monthly, hourly, or even on-demand payment options, which can be helpful for businesses with fluctuating needs.

  • Easy online purchase and management–They have an online platform to make it easy for businesses to purchase and manage their policies.

  • No long-term contracts–They don't require long-term contracts, which can be beneficial for businesses that want more flexibility.

Cons

  • Limited coverage for certain professions–Thimble's coverage may not be suitable for all types of professions or businesses, as they may have limited coverage options.

Thimble offers flexible workers' compensation coverage with monthly, hourly, or even on-demand payment options. They also have an online platform to make it easy for businesses to purchase and manage their policies.

Best for: Flexible payment options

Average cost: $28 per month 

Our rating: 9/10


BRCF Railroad Insurance

Pros

  • Flexible payment options: BRCF Railroad Insurance offers flexible payment options for their railroad insurance coverage, which can be helpful for businesses with fluctuating needs.

  • Easy online purchase and management: They have an online platform to make it easy for businesses to purchase and manage their policies.

  • No long-term contracts: They don't require long-term contracts, which can be beneficial for businesses that want more flexibility.

Cons

  • Limited coverage for certain railroad operations: BRCF Railroad Insurance's coverage may not be suitable for all types of railroad operations or businesses, as they may have limited coverage options.

When it comes to choosing a railroad insurance provider, it's essential to consider the reputation of the company. BRCF is a well-known name in the industry, and they offer a range of insurance products, including railroad insurance.

Best for: Fast claims process

Average cost: $40 per month 

Our rating: 9/10


Railroad Marketing Insurance

Pros

  • Comprehensive disability insurance

  • Fast to handle queries

  • Call or send an email to file a claim

Cons

  • No online quote 

Railroad Marketing Insurance is a great choice if you’re looking for a comprehensive disability insurance program. This company can also hook you with partners that underwrite business insurance products for railroads. Online quoting isn’t available and you have to contact an agent. 

Best for: Disability insurance for railroads

Average cost: $55 per month

Our rating: 5/10



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