Railroad Sidetrack Agreement

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Railroad Sidetrack Agreement

An agreement between a railroad company and the owner of a property on which a rail sidetrack is built. The owner agrees not to sue the railroad for covered accidents that might occur on the owner's property. It is also simply called a sidetrack agreement.
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We've all seen the term "sidetrack agreement" in a commercial general liability (CGL) policy.
But just what is a "sidetrack agreement," and does it ever come up in a case?
The Gravette court observed that the term "sidetrack agreement" was not defined in the policy so it turned to the dictionary for guidance, noting that "sidetrack" means "to shunt, to shift, as a train, from the main line to a siding." Thus, the court concluded that "the common understanding of 'sidetrack agreement' would be an agreement regarding a railroad track or siding." Based on that super-helpful definition, the court held that "the trash hauling contract had nothing to do with railroads.
An exception (that appears at the end of this section) to this exclusion applies to liability assumed under a sidetrack agreement. A sidetrack agreement is a type of hold harmless agreement between a railroad and an insured in which the railroad's sidetrack, built on the insured's premises, serves the insured.
An exception to this exclusion applies to liability assumed under a sidetrack agreement (see previous annotation).
Paragraphs (3), (4), (5) and (6) of this exclusion do not apply to liability assumed under a sidetrack agreement. Paragraph (6) of this exclusion does not apply to "property damage" included in the "products-completed operations hazard".
The second type of insured contract is a sidetrack agreement.
A sidetrack agreement is a contract between a business and a railroad wherein the railroad builds a track on the business's property to facilitate shipping, and the business then agrees to release the railroad from liability.
A sidetrack agreement is an agreement between the owners of a premises and a railroad with a railroad sidetrack (i.e., an access track) that services the business owner's property, usually a warehouse or loading dock facility.
One exception is for liability assumed under a sidetrack agreement.
As with other parts of exclusion J, this part of the exclusion does not apply to liability assumed under a sidetrack agreement.
For decades, the major exposures were relatively basic business contracts: leases; elevator maintenance agreements; obligations required by a municipal ordinance; sidetrack agreements; and easement In fact, these were so commonly accepted as normal parts of business that long ago the standard liability forms automatically included them, and hundreds of thousands of insurance students learned them as the aptly titled "incidental contracts."