1. Forms
2. CG
3. CG-00-35

Railroad Protective Liability Coverage Form (CG 00 35)

1. What the form is

The Railroad Protective Liability Coverage Form (CG 00 35) is a specialized insurance policy designed to protect a railroad (the named insured) from liability arising out of the operations of a contractor performing work on or near railroad property. This form is purchased by the contractor for the benefit of the railroad. It provides coverage for bodily injury and property damage that the railroad may become legally obligated to pay due to the acts or omissions of the contractor at the specified job location. The form also includes coverage for physical damage to the railroad's own property. It is a stand-alone, monoline coverage written on an occurrence basis and is not combined with other coverage forms. Coverage is specific to the job site described in the declarations and ends when the project is completed or the policy expires, whichever occurs first; it does not cover products or completed operations exposures.

2. Classes of business it applies to

This form is primarily used in situations where a contractor is performing work for, or on behalf of, a railroad. This often arises from contractual requirements imposed by the railroad. Examples of such scenarios include:

• Construction or demolition operations within 50 feet of any railroad property, affecting railroad bridges, trestles, tracks, roadbeds, tunnels, underpasses, or crossings.
• Contractors hired to install utilities, such as pipes, under or near railroad tracks.
• Any project requiring a contractor to work on or in close proximity to railroad right-of-way, such as grading a roadbed along a railway line or removing litter from the right-of-way.

The named insured on this policy must be the railroad. The contractor performing the work is listed on the declarations page but is not an insured under this policy.

3. Special considerations

• Contractual Requirement: Railroads typically mandate this coverage as part of their work contracts with contractors. Adding the railroad as an additional insured on the contractor's Commercial General Liability (CGL) policy is generally not acceptable to railroads due to concerns about shared limits and potential CGL exclusions related to railroad work.
• Specific Job Location: Coverage is limited to the specific job location described in the declarations and for the work described.
• No Coverage for the Contractor: It is crucial to understand that this policy insures the railroad, not the contractor performing the work. The contractor must secure its own liability coverage.
• Exclusions: The form contains specific exclusions. For example, it does not cover bodily injury or property damage where the insured has assumed liability in a contract, unless it's a "covered contract" as defined in the form. It also excludes losses that occur after the work is completed.
• Federal Employers Liability Act (FELA): An important exception to the workers' compensation exclusion is that it does not apply to obligations the insured railroad has under the Federal Employers Liability Act.
• Relationship with CG 24 17: The CG 24 17 (Contractual Liability - Railroads) endorsement to a CGL policy modifies the definition of an "insured contract" to remove certain railroad-related exclusions. While compatible, the CG 24 17 and the CG 00 35 are not interchangeable; the CG 00 35 provides separate, dedicated limits for the railroad.

4. Key information for agents and underwriters

• Risk Assessment: Underwriting focuses on the exposures arising from the designated contractor's operations at the specific job site. Key factors include the type of train traffic (freight vs. passenger), the number of trains per day, and the nature of the work (e.g., work directly on tracks versus work nearby). Even seemingly minor work can lead to catastrophic losses.
• Pricing: The premium basis is typically the total cost of the operations described in the declarations. The contractor is responsible for paying the premium. Limits frequently seen are $2 million per occurrence and $6 million aggregate, but these are dictated by contractual requirements and can be higher. Some carriers may require that they also write the contractor's primary CGL policy.
• Coverage Gaps: This form does not cover personal and advertising injury or medical payments, unlike a standard CGL. It also does not provide coverage for the contractor's own liability. Agents should ensure contractors understand these limitations and have appropriate separate coverage.
• Declarations (CG DS 04): The declarations page is critical and must accurately list the named insured railroad, the contractor, the specific job location, and a detailed description of the operations.
• Limited Endorsements: Due to the narrow and specific nature of the coverage, there are a limited number of endorsements available for this form.
• Primary Coverage: The CG 00 35 generally provides primary coverage and does not seek contribution from other insurance available to the named insured railroad, unless another contractor (not insured under this policy) is also insured for the same operation and job location.