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 
Advertising injury coverage aggregate limit $1,000,000$1,000,000$1,000,000
Tenant’s legal liability coverage limit 
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

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