Tunnel Insurance
What Does Tunnel Insurance Mean?
Tunnel insurance provides financial protection to individuals, companies, or governments that own and operate underground tunnels. These policies can cover a wide range of damages; however, they typically do not cover damage caused by acts of war or construction defects.
Because a tunnel is essentially a large piece of commercial property, this kind of policy fits within the broader category of commercial property insurance rather than personal coverage.
Insuranceopedia Explains Tunnel Insurance
Although tunnels are underground, they are not immune to damage. Earthquakes, floods, and accidents are potential threats that could harm tunnels. A single earthquake, for instance, could result in hundreds of thousands or even millions of dollars in damages. This is why tunnel insurance is essential. It is especially important for transportation companies or government agencies that rely on tunnels to move rail or car traffic between different areas.
Operators usually buy tunnel coverage as part of a wider business insurance program, since a tunnel collapse can also trigger third-party injury claims that fall under general liability insurance.
