Sidetrack Agreement

What Does Sidetrack Agreement Mean?

A sidetrack agreement is a contract between a railroad company and a property owner whose property is utilized as part of the company’s railroad track. This agreement helps reduce a portion of the railroad company’s liability.

Insuranceopedia Explains Sidetrack Agreement

Sidetrack agreements are established when the design of a railroad system impacts private property. Representatives from the railroad company approach the property owner to request permission to construct a sidetrack on their property in exchange for financial compensation.

Specifically, a sidetrack agreement includes a contract clause that protects the company from liability for any loss occurring on the property where the track is located. For example, the agreement grants the company legal immunity in property damage cases.