When ACE Group formed 28 years ago, the primary goal was to create insurance for hard-to-place risks. Now, the company offers solutions for all your clients' railroad needs in one fell swoop.
PRODUCT: ACE Tracks Railroad Protective Liability Coverage
COMPANY: ACE Westchester
BEST RATING: A++
AVAILABILITY: Coverage is for railroad operations and railroad contractor clients. Any licensed wholesaler that has a contract with ACE Group can approach ACE Westchester’s railroad unit.
FOCUS: When ACE Group formed 28 years ago, the primary goal was to create insurance for hard-to-place risks, according to Cate Whiddon, vice president and railroad practice leader at ACE Westchester. “We’ve been underwriting railroads as a class of business since our company’s inception,” she explains. “When we opened up this unit in May of last year, we decided to broaden our platform into North America—largely to concentrate on providing insurance for railroad protective exposures, general liability for railroad contractors, liability for freight railroads and liability for excursion railroads.”
That means at ACE, you can find solutions for all your railroad needs in one fell swoop. “Where we provide general liability coverage for those that are in the construction business, we can also provide coverage for the railroad protective business,” Whiddon says. “That’s a huge benefit in providing value to our customers and to our brokers.”
Trusting ACE with your railroad protective liability needs has other perks, too. Although the railroad protective form is standard, “we have the ability to place it as either an admitted form or a non-admitted form, depending on the insurance company,” Whiddon says.
And ACE has staffed its railroad department with industry experts. Whiddon herself is living proof: “I’ve dedicated my career to surface transportation and railroad underwriting,” she says. “I’m very familiar with the space and I’m familiar with the contracts that these contractors are looking to partake in. We’re very helpful in assisting our agents and brokers with navigating those coverages to make sure the policy addresses what’s required for the project.”
UNDERWRITING: Railroad liability claims made and occurrence forms, including Federal Employers’ Liability Act, foreign rolling stock and bill of lading coverage. Railroad protective liability ISO filed forms may be available. Railroad contractors and excursion operations have a minimum deductible of $5,000. Limits up to $25 million with a railroad liability minimum SIR of $25,000.
Since forms are standard, “all railroad insurers attack this exposure the same way,” Whiddon says. “We all underwrite based on the total construction costs of the work being performed and then the percentage of construction costs that are within 50 feet of the railroad tracks.” Beyond that, “each insurer individually risk underwrites based on the exposures presented—how long is the project, what’s being done, how invasive is it?” Whiddon asks. “Unlike most policies that are underwritten on 12 months, a railroad protective policy can be written for one day or it can be written for five years. It all depends on the nature of the project.”
MINIMUM PREMIUM: Varies by risk.
TARGET: The customer base is “very diverse—such is the nature of the job,” Whiddon says. “We could be insuring a freight railroad or some tracks being put down; we could be insuring a commuter railroad because they are adding a new platform or a new parking lot; we could be insuring a railroad that has an exposure emanating from a homeowners association building several new homes near the railroad tracks.”
That means clients range from everyday general contractors who happen to be doing work near a railroad to railcar lessors and lessees, short line and regional railroads and even rail car, locomotive and parts manufacturers.
COVERAGE TERRITORY: Westchester Fire Insurance Company is licensed and admitted in all 50 states for Railroad Protective Liability. ACE Westchester can also utilize non-admitted insurance companies, including Westchester Surplus Lines Insurance Company, when offering insurance for railroad contractors, freight railroads and excursion railroads.
CONTACT: Cate Whiddon, vice president and railroad practice leader; ACE Westchester, 11575 Great Oaks Way, Suite 200, Alpharetta, GA 30022; 972-465-7918.
Jacquelyn Connelly is IA senior editor.
