Railroad Liability Insurance
Railroad liability is the core specialty coverage for an operating railroad, addressing the exposures unique to running trains — grade crossings, right-of-way, host-railroad indemnity, and FELA worker-injury claims.
Railroad Liability for Operating Railroads
Running a railroad creates exposures that ordinary liability never contemplates: grade crossings, trespassers on the right-of-way, derailments, and the contractual indemnity demanded by host railroads and track owners. Railroad liability is the specialty coverage built for these risks.
What Railroad Liability Addresses
- Grade-crossing accidents involving vehicles and pedestrians
- Right-of-way and trespasser exposure along the line
- Derailment liability and damage to others' property
- Host-railroad contractual liability: The broad indemnity agreements track owners require
- Operating exposures that standard GL excludes
FELA — The Railroad Worker Injury Law
Railroad workers are generally NOT covered by state workers compensation. Instead, the Federal Employers Liability Act (FELA) governs railroad worker injuries — a fault-based system where an injured employee sues the railroad for negligence. FELA claims can far exceed typical workers comp benefits, which makes FELA liability coverage essential for any railroad with paid operating crews.
Why It Pairs With General Liability
General liability handles the depot and visitor exposures; railroad liability handles the train, track, crossing, and FELA exposures. An operating railroad needs both, and we coordinate the program so there are no gaps between the platform and the main line.
What's Covered
Frequently Asked Questions
The Federal Employers Liability Act governs railroad worker injuries instead of state workers comp. Injured railroaders sue the railroad for negligence, and awards can far exceed comp benefits. Any railroad with paid operating crews needs FELA liability coverage.
Track owners and host railroads require operators to carry high liability limits and to indemnify them broadly, because an incident on their track can be catastrophic. Railroad liability is structured to meet those contractual requirements.