Frequently Asked Questions

• Brokers are a reliable concerning what is and is not covered by the insurance policy(ies) they broker/obtained for a railroad.


• Brokers are not a reliable source of advice concerning how to shift risk created by a railroad’s vendors, contractors, and invitees. Why?


• Brokers sell products (insurance policies). They have a portfolio of products and look for a problem that they have product to solve. The result:
  
  
  
  1. Brokers always define your problem in terms of their product, no product = no solution, and
  
  
  2. Almost always commercial insurance is only a partial solution, which looks good until a loss occurs.
  
  
  
  


• Shifting risk of loss from a railroad to it vendors, contractors, and invitee’s is a process not a product. The process includes:


Defining the Problem(s)



1. Evaluate your risk shifting practices compared to the industries “Best Risk Shifting Practices”.


2. Decide upon a risk shifting philosophy.


3. Choose where on the risk transfer protection scale you want to operate from, what’s your risk shifting objective.


4. Assessment of your risks of loss (Qualitative & Quantitative).


5. Create a “ Risk Matrix” - an essential internal communication tool to help assure team members work together.


Choose the Solution(s)

6. Choose contract insurance requirement language that supports your philosophy and protection objective:




• Risks to be shifted.


• Requirements.


• Discussion.



Implementing the Solution(s)

7. Develop a coverage strategy.


8. Know how to overcome objections to your insurance requirements.


9. Know the case law that supports coverage strategy.


10. Manage compliance.





• CRTC10_TN is the professional knowledge of risk management principles, insurances coverage, and the insurance marketplace that railroads need to assure that their risk shifting practices achieve their goal of protecting it from casualty loss created by their vendors, contractors, and invitees. It’s a process consisting of proprietary practices, models, templates, processes, and documentation specifically designed, developed, and validated by CRT Consulting, LLC for railroads.


• It’s trade named by CRT Consulting, LLC: CRTC10_TN as such it’s not available from any other source.

• If we set price aside for a moment, would you want to employ CRTC10_TN methodology at your railroad?


• Is this a big enough concern that it will keep you from employing CRTC10_TN to lower your TCOR?


• Let's put that objection on the table and see if, between the two of us, we can't figure out a creative way to get CRTC10_TN working for your railroad.

Every railroad has losses. If this hasn’t happened to you, you’ve heard how it did happen to another railroad. A horrific accident occurs that requires that everyone pull out their insurance policies only to learn that they do not provide the coverage that was thought to be in place. The consequences: First, coverage disputes, lawsuits with the insurers and between the contracting parties. Second, a post contract negotiation process begins as the parties are forced to compromise with each other and the insurer on the scope of insurance to be provided. In every case this is very time consuming and very, expensive.