Not surprisingly, there is certainly not an abundance of case law addressing sidetrack agreements in the context of coverage disputes.
The greater mystery than what a sidetrack agreement is may be what it's even doing in the policy--along with some of the other definitions of "insured contract" that are also pretty obscure, with likely almost no applicability.
are considered insured contracts under businessowners liability coverage.
By making sidetrack agreements an exception to the contractual liability exclusion, the exposure presented by this type of arrangement is protected against.
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.
Sidetrack agreements, as we've seen, are agreements where a railroad will extend its tracks onto a business's premises for loading and unloading.
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.