Archive for Transportation & Storage
Locomotives are powerful machines that pull railroad cars on tracks. They operate in many different areas and in varied terrain. They can be for freight use only or for passenger use, either short run or long run. Repairing locomotives is an important part of the safety of the entire railroad. Operations that repair locomotives have significant exposures because of the damage an improperly serviced locomotive can cause, the damage that can be caused to a locomotive while in the repair operation’s care, custody, and control, and the injuries to employees who work on the locomotive.
Railroad Property and Liability Coverages
There are many different types of railroad exposures, including short line, regional, light transit, national, and others. Lloyd’s of London or other insurers with underwriting units that specialize in the railroad business usually write property coverage on railroad rolling stock and other railroad property. Federal Employers Liability Act (F.E.L.A.) coverage is needed to cover work-related injuries to all railroad employees in addition to commercial general liability and cargo legal liability coverage. Foreign rolling stock coverage is also needed to insure the railroad’s legal liability for damage to non-owned rolling stock while in its care, custody, or control.
Railroad Protective Liability
This coverage provides protective liability coverage for railroad owners from the vicarious acts of contractors or subcontractors that work under contract for them or on their behalf. It covers claims for bodily injury or property damage and for physical damage to certain railroad-related property that arise out of operations the designated contractor performs. The contractor or subcontractor that does the work purchases this coverage in the name of the railroad and for its benefit.
Miniwarehouses or self-storage facilities are popular because their customers are able to rent private storage space under their own lock and key. Coverage is available for both the property and liability exposures of the owners of these facilities. The primary coverage concerns involve buildings, business personal property, loss of business income, extra expense, commercial general liability, and legal liability coverage for customers’ goods.
Short Line or Tourist Railroad Packages
Specialty insurance markets have developed a special package policy of liability coverages for short line and tourist passenger and freight railroads Coverage includes bodily injury and property damage liability for members of the public; liability for damage to foreign (non-owned) rolling stock; and cargo legal liability insurance. Insurance is also available for employee injuries covered under the Federal Employers Liability Act (F.E.L.A.). The short line package also provides excess liability over a significant self-insured retention.
Transportation Brokers-Contingent Cargo Insurance
This is an “all risk type” coverage designed to insure cargo while it is in the custody of the motor truck carrier that is used by the insured transportation broker. It includes warehouse-to-warehouse coverage and applies when the motor truck carrier cannot pay the shipper for its cargo loss because its insurance was cancelled, the insurance company denied the claim, or the limits of insurance were inadequate. It usually warrants that the transportation broker will keep a valid motor truck cargo policy in its office for any vehicle brokered by the insured.