Product Update

Railroad Protective Liability Discussed in Contractual Risk Transfer

This release of Contractual Risk Transfer updates the discussion of the standard railroad protective liability coverage form.

Contractors required to purchase railroad protective liability (RRP) coverage when their contract calls for work performed either for the railroad or under an easement granted by the railroad may face subrogation claims by the RRP insurer. Unlike other forms of protective liability insurance, under which a standard endorsement for waiver of recovery rights is readily available, RRP insurance has no such standard mechanism available for protecting a "designated contractor" from subrogation. An example of the dangers this situation poses for contractors is provided in a federal circuit court decision now added to the analysis of railroad protective liability coverage.