Railroad Protective Insurance

A widely needed but often misunderstood type of insurance is Railroad Protective Insurance. Contractors performing work on or near railroad property are often required to carry this specialized coverage. If your client's company is contracted for projects involving railroad property—such as construction, maintenance, or utility work—this policy is critical for managing risk and meeting contractual obligations.

 

Railroads face significant liability exposures when independent contractors operate on their property. While some railroads may choose to extend their own insurance to cover these activities, doing so can substantially increase their premiums, deductibles, or self-insured retentions. In many cases, it's more practical and cost-effective for railroads to transfer this risk contractually.

Railroads often require contractors to provide indemnification and carry their own liability insurance. However, relying solely on a contractor’s general liability policy can leave gaps—especially if the contractor has exhausted limits elsewhere, cancels coverage, or fails to meet the requirements. That’s where a stand-alone Railroad Protective Insurance policy becomes essential.

At United Shortline Insurance Services (USIS), we specialize in railroad-related coverage and offer tailored Railroad Protective Insurance policies that are job-specific and contractor-specific. These policies are designed to protect the railroad from risks arising directly from a contractor’s operations on a particular project. USIS provides fast turn-around times and access to multiple competitive markets to meet your clients’ needs efficiently.

This coverage is comparable in structure to an Owners and Contractors Protective (OCP) liability policy, which protects non-railroad owners from third-party claims involving a contractor's work. However, Railroad Protective Insurance uses different language and is uniquely tailored to the exposures railroads face, making it non-interchangeable with OCP policies.

Ideal Accounts and Appetite

USIS is a strong market for agents and brokers placing business for contractors who are:

• Performing construction or maintenance work on railroad property
• Installing or repairing utilities, pipelines, or communication lines near rail tracks
• Engaged in excavation, grading, or similar civil projects adjacent to rail assets

Whether your client is a small regional contractor or a national firm bidding on a railroad job, we can help you find the right fit.

Coverage Highlights and Advantages

• Project-specific policies tailored to contractor operations
• Protects the railroad against liabilities arising from contractor work
• Multiple carrier options to suit different project scopes and requirements
• Efficient submission and quoting process with fast turnaround

Underwriting Notes and Minimum Premiums

Minimum premiums vary based on the size and scope of the project, location, and the contractor’s operations. USIS works with multiple markets to help agents secure competitive terms and coverage that fits the job requirements.

Territories and Availability

This program is available in most states, including AL, AK, AZ, AR, CA, CO, CT, DE, FL, GA, HI, ID, IL, IN, IA, KS, KY, LA, ME, MD, MA, MI, MN, MS, MO, MT, NE, NV, NH, NJ, NM, NY, NC, ND, OH, OK, OR, PA, RI, SC, SD, TN, TX, UT, VT, VA, WA, DC, WV, WI, and WY.

Why Work With United Shortline Insurance Services?

USIS is a trusted wholesale broker with deep expertise in railroad-related insurance. Our team understands the unique exposures railroads and their contractors face. We offer:

• Fast, responsive service
• Multiple carrier options for flexibility
• Exclusive railroad insurance programs
• Broad underwriting capabilities tailored to railroad operations

We welcome agents looking to place new or renewal business for contractors working in and around railroad environments.