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.
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? | Yes | No | Included |
Hired/non-owned auto liability coverage included? | Yes | No | Excluded |
Equipment breakdown floater included? | No | Yes | Yes |
Can you get a certificate of insurance online? | Yes | Yes | Yes |
Name additional insureds? | Yes | Yes | 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 | Amount |
---|---|
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 |
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
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.
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? | Yes | Yes | Yes |
Waiver of subrogation included? | Yes | No | Yes |
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.
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.
Insurance Type | Coverage Provided | Claims Covered |
---|---|---|
General Liability Insurance | Bodily injury and property damage | Claims arising from accidents or incidents involving third parties |
Professional Liability Insurance | Professional services or duties | Claims arising from errors, omissions, or negligence in the provision of professional services or duties |
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.
Railroad protective liability insurance cost typically ranges from $5 million or more per occurrence and an aggregate limit of $10 million or more.
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 protects railroad companies from environmental liabilities related to their operations, covering damages or cleanup costs arising from pollution or other environmental hazards.
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.
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.
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
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 for Railroad Employer's Liability Insurance | Description |
---|---|
Per-Incident Limits | Maximum amount the railway insurance policy will pay out for a single incident or claim |
Aggregate Limits | Maximum amount the policy will pay out for all incidents within a certain period |
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
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NEXT | Thimble | |
---|---|---|
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/$10,000 | No |
Offered as an endorsement to general liability insurance? | Yes | Yes |
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 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.
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.
CoverWallet | Thimble | 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? | Yes | Yes | Yes | Yes |
Name additional insureds for free? | Yes | Yes | Yes | Yes |
BOP discount? | Yes | Yes | Yes | Yes |
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.
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
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.
The coverage limits for railroad builders risk insurance vary depending on the size and complexity of the project.
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.
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.
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.
The coverage limits for railroad rolling stock insurance may vary depending on the specific needs of the railroad company.
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 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.
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.
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.
Cost per Month | Cost per Year | Minimum 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 Month | Cost per Year | Best for | |
---|---|---|---|
NEXT | $23 | $276 | Best overall; Fastest general liability insurance for railroads |
CoverWallet | $26 | $312 | Comparing railroad insurance quotes online |
Travelers | $30 | $360 | Established provider with a strong reputation |
Zurich | $33 | $396 | Specialized railroad coverage |
Thimble | $28 | $336 | Flexible payment options |
BRCF | $40 | $480 | Fast claims process |
Railroad Marketing Insurance | $55 | $660 | Disability insurance for railroads |
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.
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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:
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.
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
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.
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
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.
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
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
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
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.
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
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.
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
Comprehensive disability insurance
Fast to handle queries
Call or send an email to file a claim
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
Use anyone except Employers. Period. They are non-transparent and shameful. After I complained long enough to warrant a call from a supervisor, the supervisor called back from a PRIVATE NUMBER (no caller ID), left a message that they are not reversing their decision (without any communication with me), and failed to leave a phone number for me to call back. She was hiding! They also fact find via email and phone calls, which is terrific for speed and communication. However, after setting a precedence of email or phone calls, they send time sensitive information via email, without any heads up... they are hoping you miss it and forfeit via expiration. Evil policies. Go elsewhere.
This place is an absolute joke of a company and should be ashamed of the way they conduct business. I was hurt on the job at the end of July and it took them just shy of 7 weeks to issue out a paycheck to me. Yes the amount was back dated but still. Not many have the luxury of not receiving a paycheck for almost 2 months. To top it all off, the original adjuster marked me down for the wrong state which caused a problem from the get go, I've had 3 different adjusters now since each one can't seem to figure out the simplicity of my claim. All my paperwork which includes, my job, house, and drs visits all are from the same state and city but yet some how I have been filed under a completely different state 1500 miles away. They do not answer your phone calls or emails no matter how many you leave. I've had to escalate my frustrations to the supervisors of each of these individuals in order to even get some kind of response. I've had more communication and information given to me about my claim from the customer service representatives then the actual adjusters.......... please tell me how that works?! A serious overhaul needs to happen here in order to serve your clients the way they deserve to be taken care of. 10/10 do not recommend this company to a single soul on earth
I have never had the displeasure of working with a more incompetent and disrespectful person in my life. I’m an injured worker and the adjuster that was assigned to my case was named Carrie Furgeson. In the past 6 weeks that I’ve been injured and out of work I have only been able to get ahold of her twice, not for lack of trying. I have left countless voicemails, countless emails, and she ignores them all. When I am finally able to get ahold of her I’m greeted with terrible customer service. She is rude, she talks over me and I’m hardly able to get a word in edgewise. She spelled my name wrong on my documents even after I spelled it for her properly countless times, this caused a whole new issue with my bank. I have bill collectors from the hospital calling me demanding payment and Carrie Furgeson won’t do a single thing to help, or to get them paid. All of my documentation is in Colorado, my job is in Colorado, my address is in Colorado, all my Dr offices and appointments have been in Colorado and Carrie still managed to hold my claim because she wasn’t sure what state she needed to file it under. It’s been 6 weeks since my Injury and my company still hasn’t received the wage paperwork to fill out so they can get me my correct wages. When she’s not ignoring me she’s answering my questions with “I don’t know” well I don’t know how she got this job, because apparently she doesn’t know anything about it. She is a disgusting morose individual inside and out and I genuinely wish her the worst in all of her future endeavors. I highly recommend you don’t use this company. Please if you are a business owner and your looking into this company please don’t use them. I’m sure they have the cheapest payment and that’s why companies use them in the first place, but you will be doing your employees a grave disservice by forcing them to venture into this absolute dumpster fire of a company. I would rate 0/5 if possible but 1 was the lowest I was allowed.
Their general liability insurance purchase process is simply the best online experience I've ever had in my life!
As long as they cover your line of business, you're literally covered! best rates, best coverage, best online experience, best professionals, can't be happier that I chose them!