Sidetrack Insurance

Updated: 11 March 2024

What Does Sidetrack Insurance Mean?

Sidetrack insurance is an agreement between a railroad company and the owner of a private property whose land is crossed by a railroad track. This agreement absolves the railroad company of any liability should any damage happen to the private property.

Sidetrack insurance is also sometimes called a “railroad sidetrack agreement” or simply “sidetrack agreement.”

Insuranceopedia Explains Sidetrack Insurance

Sidetrack insurance is a binding and insured contract between a private property owner and a railroad company that places a track or any structure that is a part of its services within the private property.

When anything untoward happens, like an accident that occurs within the premises where the railroad company has a track, the railroad company’s liability insurance covers for the damage. The property owner, meanwhile, is less liable to make claims against the railroad company.

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