CG DS 04–RAILROAD PROTECTIVE LIABILITY DECLARATIONS

(November 2019)

INTRODUCTION

The Insurance Services Office (ISO) provides a sample declarations for insurance companies to consider as they design their own declarations. It includes descriptive, inclusive language that clearly identifies the risk, coverage information that relates to specific sections of the coverage form. It also has rating and premium information on the exact nature of the charges made at inception as well as those that could be made should a premium audit occur. This brief analysis addresses the CG DS 04–Railroad Protective Liability Declarations. Below are the sections included in a declarations.

DESCRIPTION

This section includes the following information:

• Policy number

• Insurance company name
• Producer name
• Named insured
• Named insured mailing address
• Policy period expressed as month, day, and year beginning at 12:01 A.M. at the named insured's mailing address
• Job or project location
• Designated contractor name
• Designated contractor mailing address
• Governmental authority or other contracting party name and mailing address

INSURING AGREEMENT

The insurance company agrees to provide the insurance this coverage form includes, subject to all its terms and conditions and the premium being paid.

LIMITS OF INSURANCE

This section includes the following information:

• Each occurrence limit
• Aggregate limit

The each occurrence limit is the most that may be paid in any one occurrence or event, regardless of the number of claims that result from that occurrence.

Example: Ralph's Railroad Company has CG 00 35–Railroad Protective Liability Coverage Form with a $3,000,000 each occurrence limit. The designated contractor is Rail Repairs 'N Renovation, and it is replacing a section of highway that includes a railroad crossing. During the project, a tour bus drives on the section of the road project open to vehicular traffic. The bus is damaged and many of its passengers are injured when it travels over an improperly repaired section of track on the railroad crossing. The passengers submit claims for bodily injury damages totaling $5,000,000. Regardless, the limit for all claims from the incident is $3,000,000. Ralph’s policy has no obligation to respond to the remaining $2,000,000 in claims.

The aggregate limit is the most that may be paid for the total of all bodily injury and property damage sustained during the specified policy period.

Example: Ralph's Railroad Company has CG 00 35 with a $6,000,000 aggregate limit. Ralph's sustains four eligible losses of $2,000,000 each during the policy period, for a total of $8,000,000. In this instance, the policy’s coverage would be exhausted as the maximum amount of possible coverage for the applicable policy period would be $6,000,000.

DESCRIPTION OF OPERATIONS

This section has a space to describe the specific construction or demolition project or operations being performed at the designated job site or location.

Note: Because only operations specifically described are covered, it is important that this description be as precise and complete as possible. If the job changes, an endorsement is necessary to be certain that the change is noted and that coverage applies.

CLASSIFICATION AND PREMIUM

This section includes the following information:

• Classification
• Code number
• Premium base–contract cost
• Rate (per $1,000 of contract cost)
• Advance premium subject to audit, if applicable
• State or other taxes, if applicable

• Premium payment terms if the policy period is more than one year and premium is paid in annual installments

• Audit period/frequency, if applicable. The options are monthly, quarterly, semi-annual, or annual.

ENDORSEMENTS

This section has spaces for endorsement numbers that apply and are included when the policy is issued.

STATEMENT OF COVERAGE

This section states that this declarations, CG 00 35, the common policy conditions, and any endorsements included form the complete policy.

SIGNATURES

This section has spaces for the countersigning agent's name and the date the policy was countersigned. The facsimile signatures of the insurance company officers may also be entered in this area if they are not entered elsewhere.