Sidetrack Insurance

Definition - 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.

Connect with us

Insuranceopedia on Linkedin
Insuranceopedia on Linkedin
"Insuranceopedia" on Twitter

Sign up for Insuranceopedia's Free Newsletter!