Railroad "Quiet Zone" Liability Program

The railroad “Quiet Zone” liability program provides coverage for bodily injury and property damage claims arising out of the acts or omissions of the insured at the Designated Quiet Zone noted in the declarations or by endorsement. Provides indemnification to the railroad when required by written contract. There is also limited pollution coverage when caused by a railroad accident. There is a $100,000 self-insured retention per occurrence and a $2,000,000 limit per occurrence with a $2,000,000 program aggregate for all claims by all members.

In 2005, the Federal Railroad Administration (FRA) adopted the “Train Horn” rule which required that locomotive horns be sounded at public highway-rail crossings and provided flexibility to localities to silence horns through the establishment of “Quiet Zones.” The rule went into effect on June 24, 2005, at which time existing state and local whistle ban laws were preempted. Subsequently, several Authority members began the process of establishing “Quiet Zones.”

Under the MOCs for the primary and excess liability programs, the Authority does not provide coverage for railroad exposures, including “Quiet Zones” as approved by the FRA, or any liability members assume in contracts related to “Quiet Zones.” The MOCs do permit Authority staff to approve “Protected Contracts” with indemnity agreements pertaining to “Quiet Zones.” If the “Protected Contract” is approved, coverage is bound with the insurance carrier. Premiums are paid by the Authority and reimbursed by members.

Because the insurance carrier will not name operating railroads as Additional Insureds, members retain this exposure if they have agreed to it in a written agreement or contract. This results in a coverage gap for members, who will retain the full exposure for their contractual indemnification of an operating railroad.

The California JPIA contracts with Arthur J. Gallagher & Co. to administer this program. Members can contact Jim Thyden by email or (562) 467-8784 with any questions or to purchase this optional coverage.

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Program Documents


Reporting a Claim

Quick reporting plays a critical role in any claim. As soon as a member becomes aware of a loss, contact must be made immediately with Arthur J. Gallagher & Co. to report the loss. Report all claims to the Western Regional Claims Center:

Email: WR-Claims@ajg.com.

Policy contains the full reporting requirements.

Address for mailing:

Arthur J. Gallagher & Co. Insurance Brokers of California, Inc.
45 River Park Place West, Suite 408
Fresno, CA 93720

Toll-free numbers for assistance:

Phone: (866) 971-9462
Fax: (866) 971-9464