Sharing of track by transit and freight railroads : liability and insurance issues
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2005-09-21
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Edition:Final Report; 2005-2005
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Abstract:This report explores the issues of liability and insurance that arise in planning and operating track shared between light rail transit and freight railroads. Shared track operations involve some unique risks, and insurance is used to mitigate or manage such risks. Six case studies were examined. The transit and freight operations are temporally separated thereby limiting the extra risk. There is considerable variability in the assignment of liability between transit and freight railroad users, and in the type and amount of insurance coverage. Generally the transit agencies manage liability risks using a mix of self-insurance for smaller losses and commercial insurance for higher losses. Shared use seems to have little effect on insurance costs because of the safety procedures that are used.
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