1. Forms
2. CG
3. CG-DS-04

Form CG DS 04: Railroad Protective Liability Declarations

1. What the form is

Form CG DS 04, Railroad Protective Liability Declarations, is a standard Insurance Services Office (ISO) form that provides the declarations page for the Railroad Protective Liability Coverage Form (CG 00 35). It is not a standalone policy but rather a crucial component that personalizes the CG 00 35 by outlining the specific details of the coverage being provided. This form officially documents key information such as the named insured (the railroad), the designated contractor performing the work, the specific job location, the policy period, limits of insurance, and a precise description of the operations being covered. The CG DS 04 is essential for clearly defining the scope of coverage and is used by insurers to identify the risk and outline coverage specifics and rating information.

2. Classes of business it applies to

This form is exclusively used for situations where a contractor is performing work on or near railroad property and the railroad requires specific insurance protection. Standard Commercial General Liability (CGL) policies typically exclude operations within 50 feet of railroad property. Therefore, Railroad Protective Liability (RRP) coverage, as detailed in the CG 00 35 and declared on the CG DS 04, is necessary. Examples of when this form would be used include:

• Construction or demolition operations on or near railroad tracks, bridges, trestles, roadbeds, tunnels, underpasses, or crossings. For instance, a company hired to repair a highway overpass that spans a railway line, or a contractor building a new commercial development adjacent to railroad tracks.
• Utility contractors performing work such as laying cables or pipelines near or crossing railroad rights-of-way.
• Any project where a railroad company contractually obligates a contractor to provide insurance coverage for the railroad's liability arising out of the contractor's work.

3. Special considerations

Several important factors must be considered when using the CG DS 04 and the associated CG 00 35:

• Named Insured: The railroad is always the named insured on this policy, not the contractor performing the work. The contractor is responsible for purchasing the policy for the benefit of the railroad.
• Project Specific: Coverage is specific to the job location and the description of operations detailed on the declarations page (CG DS 04). Any changes or deviations from the described project may not be covered unless the policy is endorsed. For example, if the project is to repair a crossing gate, and the contractor subsequently agrees to demolish and rebuild a nearby trestle without amending the policy, the trestle work may not be covered.
• No Coverage for the Contractor: This policy does not provide coverage for the contractor's own liability; it solely protects the railroad from liability arising out of the contractor's operations. The contractor must maintain its own CGL and other relevant insurance.
• Occurrence Basis: Coverage is typically written on an occurrence basis.
• Completed Operations Exclusion: Railroad Protective Liability generally does not cover completed operations. Coverage applies to ongoing operations at the specified job site.
• Contractual Requirement: The need for this coverage is almost always driven by a contractual agreement between the railroad and the contractor. Railroads often mandate this coverage before any work commences.
• Work Within 50 Feet: Standard CGL policies often exclude work performed within 50 feet of a railroad. The RRP policy is designed to fill this specific coverage gap.

4. Key information for agents and underwriters

Agents and underwriters need to pay close attention to the following when dealing with CG DS 04 and the underlying RRP coverage:

• Accurate Description of Operations: The description of operations on the CG DS 04 must be precise and complete, as coverage is tied directly to this description. Vague or incorrect descriptions can lead to coverage disputes.
• Risk Assessment: Underwriting RRP involves evaluating the vicarious liability exposure to the railroad arising from the designated contractor's work at a specific site. Key factors include the nature and complexity of the work, the contractor's experience and safety record, the type and volume of rail traffic (freight vs. passenger trains), and the proximity of the work to active rail lines.
• Pricing and Limits: RRP rates are often not filed and are based on underwriting judgment due to the unique nature of each project. Limits are typically driven by contractual requirements from the railroad, commonly $2 million per occurrence / $6 million aggregate or $5 million per occurrence / $10 million aggregate, though higher limits may be necessary for projects with greater exposure, such as those involving passenger trains. Minimum premiums often apply.
• Contractor's Other Insurance: Underwriters may require verification that the contractor maintains adequate CGL coverage, often with limits equal to or greater than the RRP limits. Some carriers may also require that they write the contractor's primary CGL as a condition of providing RRP coverage.
• Exclusions: Be aware of specific exclusions that may apply, such as those for asbestos, nuclear energy liability, or certain hazardous activities like blasting (unless specifically underwritten and endorsed). Some insurers have automatic declinations for certain types of projects (e.g., work in New York, projects involving explosives, or underground construction).
• Policy Duration: Policies are typically written for the duration of the specific project, which can range from a short term to multiple years (though projects longer than 24-36 months may require special underwriting approval). Coverage cannot typically be bound after the project has commenced.
• Information Gathering: A thorough application is essential, detailing the railroad, contractor, project location, scope of work (including job cost within 50 feet of tracks), project duration, daily rail traffic, and any specific hazards like blasting or tunneling.