Railroad Protective Policy

Construction Site Near a Railroad? A CGL Policy Isn’t Enough

Construction operations located along a railroad’s right of way can potentially disrupt or even damage the railroad’s operations. For that reason, railroads often require the contractor to assume the railroad’s liability for the project. This protects them from the financial risk of construction operations and the hazards they may present.

RRP: Special Insurance That Fills the Gap

A standard CGL policy excludes liability for work performed within 50 feet of a railroad’s property. To fill the gap in coverage, the Railroad Protective Policy (RRP)* was created.
Similar to an owners and contractors protective liability policy (OCP), RRP has these main features:
  • Purchased by a contractor to protect a railroad
  • Provides a separate policy with limits dedicated solely to the named insured railroad

Who’s Covered? (Not the Contractor)

An RRP covers the named railroad only, for two types of losses:
  • Third party bodily injury and property damage resulting from a contractor’s work for which the railroad could be held vicariously liable, and
  • Physical damage to the railroad’s property. This coverage is primary and will not seek contribution from any other insurance.
Just like an OCP, RRP is a project-specific, occurrence-based policy. It covers only ongoing operations at a particular job location, which is designated in the policy’s declarations page. There’s no coverage for completed operations.

What the Insurance Company Needs to Know

When applying for this coverage, the contractor should be as specific as possible about the job location to ensure:
  • Accurate underwriting assessment
  • Accurate policy declarations describing the covered location and operations
Here’s more key information to provide to the insurance company from the outset:
  • Total project cost
  • Cost of work taking place within 50 feet of the railroad’s tracks
  • Number of passenger and freight trains passing along the tracks per day
  • Number of tracks
  • Number of railroad employees performing work
  • Project location
  • A detailed description of the job
Learn about how to protect your projects and your business with RRP coverage.
* Offered on a monoline basis.
This general product description is informational only and designed for insurance producers. It is neither an offer to sell nor a solicitation to purchase any particular insurance product, and may not be disseminated to the general public. Policies should be read carefully to identify all exclusions, limitations, and other terms and conditions. In the event of a conflict between any policy and this document, the terms and conditions of the policy shall control. This document outlines in general terms the coverages that may be afforded under a policy from The Hartford. All policies must be examined carefully to determine suitability for your needs and to identify any exclusions, limitations or any other terms and conditions that may specifically affect coverage. In the event of a conflict, the terms and conditions of the policy prevail. All coverages described in this document may be offered by one or more of the property and casualty insurance company subsidiaries of The Hartford Financial Services Group, Inc. Coverage may not be available in all states or to all businesses. Possession of these materials by a licensed insurance producer does not mean that such producer is an authorized agent of The Hartford. To ascertain such information, please contact your state Department of Insurance or The Hartford at 1-888-203-3823. All information and representations herein are as of May 2017.