Tunnel Insurance

Definition - What does Tunnel Insurance mean?

Tunnel insurance is insurance that provides financial protection to the people, companies, or government that owns and operates an underground tunnel. Tunnel insurance policies can cover a wide variety of different types of damages. However, tunnel insurance normally doesn't cover damage sustained as an act of war, or damage from construction defects.

Insuranceopedia explains Tunnel Insurance

Despite the fact that tunnels are underground, they are not impervious to damage. For example, earthquakes, floods, and accidents are all things that could potentially harm tunnels. A single earthquake could cause hundreds of thousands, or even millions of dollars worth of damages to a tunnel. This is why tunnel insurance is sought. Tunnel insurance is particularly important for transportation companies or government agencies who use tunnels to pass rail or car traffic from one area to another.

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