# Railroad Protective Liability and Right-of-Entry Requirements for Contractors URL: https://mycontractorsinsurancequote.com/project-specific-liability-insurance/railroad-protective-liability Updated: 2026-10-29 · Reviewed by the Principal, Gleason Insurance Brokers, LLC Publisher: My Contractors Insurance Quote, a website of Gleason Insurance Brokers, LLC Railroad protective liability is a policy a contractor buys that names the railroad as the insured for work on or near the railroad's property, and most freight railroads and rail transit agencies require it, along with their own general liability, auto and employer's liability terms, before they sign a right-of-entry agreement or permit. Limits and forms differ by railroad and by type of work, and each railroad updates its exhibit, so the current agreement is confirmed for every job. Placement is subject to underwriting and to the terms of the policies issued. ## Key Decision Points - Railroad protective liability is written for the railroad, on a separate policy the contractor buys, commonly on ISO form CG 00 35. - Union Pacific's contractor exhibit lists railroad protective limits of $2 million per occurrence and $6 million aggregate. - BNSF's 2024 Public Projects Manual states different limits in its summary and in its sample agreement, so the agreement is confirmed for each job. - On federal-aid highway projects, 23 CFR 646.111 caps federal reimbursement at $2 million per occurrence and $6 million aggregate; it is not a required minimum. - Rail transit agencies such as DART and Metrolink publish their own right-of-entry insurance and fee schedules. ## What Railroad Protective Liability Covers A contractor's general liability policy protects the contractor; railroad protective liability protects the railroad. It is a separate policy, issued in the railroad's name for a specific job, that responds to injury and damage arising from the contractor's work on or near the railroad's property, subject to its terms. Railroads ask for it because their own exposure, from derailments to injured employees and damaged track, can be large even on short jobs. Railroads commonly also require the contractor's general liability to be endorsed to remove the standard limitation on work near railroads, and they specify the endorsement by number in their exhibits. How single-job liability placements work is explained under [project-specific liability insurance](https://mycontractorsinsurancequote.com/project-specific-liability-insurance). ## Freight Railroads: Union Pacific and BNSF Union Pacific and BNSF run their own right-of-entry processes with published insurance exhibits, orientation and background check requirements, flagging and fees. Union Pacific's contractor exhibit lists general liability, auto, employer's liability, railroad protective, pollution where hazardous materials are involved and additional insured wording. BNSF's Public Projects Manual and its pipeline and wire line application set terms by type of work, and both railroads offer a way to obtain railroad protective coverage through their own programs. - Union Pacific: contractor endorsement exhibit, application fees and orientation - BNSF: Public Projects Manual, pipeline and wire line crossings and orientation The Union Pacific terms are set out in [Union Pacific contractor insurance requirements](https://mycontractorsinsurancequote.com/project-specific-liability-insurance/railroad-protective-liability/union-pacific). ### Illustrative scenario: A Utility Contractor Bores Under a Freight Line A utility contractor wins a city waterline that bores under a freight railroad. The railroad's exhibit calls for railroad protective coverage on its named form, an endorsement on the contractor's general liability and pollution coverage for the crossing. The contractor orders the railroad protective policy through the railroad's program, has its carrier issue the endorsement, schedules orientation and flagging and starts the right-of-entry application weeks ahead of the bore. The details are hypothetical, and a real job would depend on the railroad, the carriers and the firm's own risk. ## Rail Transit Agencies Commuter and light rail agencies set their own requirements for contractors, utilities and developers working on or next to their corridors. Dallas Area Rapid Transit, Capital Metro in Austin, Metrolink in Southern California and the North County Transit District each publish insurance terms, fees, safety training and flagging rules, and some set higher limits for work near freight lines they share or for heavy work. A Texas example is set out in [DART right-of-way insurance requirements](https://mycontractorsinsurancequote.com/project-specific-liability-insurance/railroad-protective-liability/dart). ## Federal-Aid Highway Projects On federal-aid highway projects that cross or occupy railroad right of way, 23 CFR 646.107 provides for the contractor to buy railroad protective insurance on behalf of the railroad. Section 646.111 limits federal participation in its cost to coverage of $2 million per occurrence and $6 million aggregate per year, with higher amounts needing approval from the Federal Highway Administration. That figure is a reimbursement cap, not a required minimum, and the railroad agreement and the contract's special provisions set the limits for each project. How DOT contracts handle railroad insurance is explained under [state DOT contractor requirements](https://mycontractorsinsurancequote.com/construction-surety-bonds/public-agency-contractor-requirements). ## Utility, Pipeline and Boring Work Under Tracks Utility and directional drilling contractors crossing under railroad tracks typically need a crossing agreement as well as a right of entry, and railroads set minimum depths, setbacks and insurance by crossing type. Pipeline crossings can call for pollution liability in addition to railroad protective coverage. A frac-out or settlement under a track can be costly, so the general liability, pollution and railroad protective terms are usually reviewed together before the bore. How this affects drilling contractors is explained under [directional drilling contractor insurance](https://mycontractorsinsurancequote.com/who-we-serve/civil-underground-utilities/directional-drilling-contractors). ## Preparing for a Right-of-Entry Agreement Railroad review can take weeks, so contractors usually start the insurance side early: confirm the current exhibit, order the railroad protective policy or enroll in the railroad's program, have the general liability endorsed as the railroad requires, line up flagging and complete orientation for every worker who will be on the property. Review times and fees are set by each railroad and are confirmed with it. Pollution coverage for utility crossings is explained under [pollution liability for underground utility work](https://mycontractorsinsurancequote.com/contractors-pollution-liability-insurance/underground-utilities). ## Before You Ask for a Quote ### What to Gather - The railroad's current right-of-entry or crossing application and insurance exhibit - Project location, track distance and type of work - Current general liability, auto, umbrella and pollution policies with endorsements - Orientation and background check records for crews - The public agency contract's special provisions, if any ### What to Ask the Insurer or Surety - Who buys the railroad protective policy, and on what form? - Does our general liability need the railroad endorsement the exhibit names? - Is pollution coverage required for this crossing? - What flagging, notice and fees apply to this job? ## Broker Notes **Quick Answer:** Railroad protective liability is a separate policy naming the railroad as insured for a contractor's work on or near its property. Union Pacific, BNSF and rail transit agencies typically require it with their own general liability, auto and employer's liability terms before granting entry. **Common Mistake:** Assuming the contractor's general liability covers the railroad. Railroads usually require a separate railroad protective policy and an endorsement on the contractor's own policy. **Broker Perspective:** We start from the railroad's current exhibit for the specific job, because limits and forms differ by railroad, by agency and by type of work. **Coverage Impact:** The railroad protective form, the general liability endorsement and any pollution coverage decide what responds; the policies issued control. ## Questions Buyers Ask ### Who buys railroad protective liability insurance? Usually the contractor, on behalf of the railroad. On federal-aid highway projects, 23 CFR 646.107 provides for the contractor to buy it for the railroad. ### Is $2 million / $6 million the required railroad protective limit? Not as a rule. It is the federal reimbursement cap in 23 CFR 646.111 and the limit in some railroad exhibits, but other railroads and agencies set higher limits for some work. ### Can a contractor get railroad protective coverage through the railroad? Union Pacific and BNSF each describe a program through which contractors can obtain coverage for qualifying work, subject to the railroad's terms. ### Do rail transit agencies require railroad protective liability? Many do. DART, Metrolink and the North County Transit District publish railroad protective limits, and some differ by location or type of work. ## Official Sources 1. [23 CFR Part 646, Subpart A (2025 edition)](https://www.govinfo.gov/content/pkg/CFR-2025-title23-vol1/xml/CFR-2025-title23-vol1-part646.xml), U.S. Government Publishing Office. Section 646.107 provides for the contractor to buy railroad protective insurance for the railroad; section 646.111 caps federal participation at $2 million per occurrence and $6 million aggregate, with higher amounts needing FHWA approval. Verified 2026-10-26. 2. [Union Pacific Contractor Endorsement, Exhibit A](https://www.up.com/content/dam/upcom/real-estate/documents/re_cont_endorsement.pdf), Union Pacific Railroad. Railroad protective liability on form CG 00 35 at $2 million per occurrence and $6 million aggregate, with general liability, auto, employer's liability and pollution terms. Verified 2026-10-26. 3. [Union Pacific railroad protective liability insurance](https://www.up.com/real-estate/rrinsurance), Union Pacific Railroad. Union Pacific's program for contractors to obtain railroad protective coverage for qualifying projects. Verified 2026-10-26. 4. [BNSF pipeline and wire line application (Rev. 10/20/2025)](https://www.bnsf.com/bnsf-resources/pdf/about-bnsf/pipeline.pdf), BNSF Railway. Insurance by crossing type for pipeline and wire line crossings of BNSF property. Verified 2026-10-26. ## Related Decisions - [BNSF right-of-entry insurance requirements](https://mycontractorsinsurancequote.com/project-specific-liability-insurance/railroad-protective-liability/bnsf) - [Metrolink right-of-entry insurance and fees](https://mycontractorsinsurancequote.com/project-specific-liability-insurance/railroad-protective-liability/metrolink) - [Capital Metro railroad permit requirements](https://mycontractorsinsurancequote.com/project-specific-liability-insurance/railroad-protective-liability/capital-metro) - [NCTD right-of-entry insurance](https://mycontractorsinsurancequote.com/project-specific-liability-insurance/railroad-protective-liability/north-county-transit-district) - [underground utility contractor insurance](https://mycontractorsinsurancequote.com/who-we-serve/civil-underground-utilities/underground-utility-contractors) --- Start a quote request: https://mycontractorsinsurancequote.com/get-a-quote · Call 844-978-7283 Contract and insurance reviews are a courtesy service that may be available at times, depending on our workload and on the size, timing and complexity of the project. A review is not guaranteed and is limited to insurance considerations. It is not legal advice and is not a substitute for advice from your own legal counsel, which you may need before signing a contract or obtaining coverage. Insurance and surety services are provided through Gleason Insurance Brokers, LLC. Site information is educational and does not constitute legal advice, a binder, an offer of coverage, a guarantee of eligibility or confirmation of policy terms. Insurance conditions are governed by actual issued policies; surety rights and obligations are governed by bond and indemnity documents.