Railroad Protective Policy and Additional Insured Status

If a contractor names a railroad as an additional insured under its CGL form, is there a need to also purchase a railroad protective policy, assuming that the railroad is not specifically requiring such a purchase? As an additional insured, wouldn't the railroad have defense and indemnity under the contractor's policy regarding a claim arising out of the negligence of the contractor? Would the exception regarding insured contract involving work within 50 feet of railroad property override the additional insured status?

North Carolina Subscriber

The CGL form excludes the indemnification of a railroad for bodily injury or property damage that arises out of construction or demolition within fifty feet of any railroad property. A regular additional insured endorsement is not going to change this point.

What you might want to consider is endorsement CG 24 17 10 01, contractual liability—railroads. The purpose of this endorsement is to provide contractual liability coverage, under a contractor's CGL form, for liability that the contractor assumes under a contract in which the contractor agrees to hold harmless or indemnify a railroad. This endorsement will protect your insured in the event the insurer providing the railroad protective policy decides to bring a subrogation action against your insured, just because he is the owner. This is a remote possibility, but it could happen, especially if the injuries or damages are extensive and if the insurer providing the railroad protective policy is different from the insurer providing the commercial general liability coverage.

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