How to Avoid Settlement Overpayment of Railroad Insurance Claims

It is reported there is a rail grade crossing accident almost every four hours in the United States. That is a surprising statistic for many people. When a railroad accident occurs, the property damage often exceeds $100,000, with numbers in the millions of dollars if bodily injury and/or death claims are involved. Because railroad companies have developed procedures that allow maximum payment from a settlement, the railway often receives overpayment from the defending insurance company. This can be prevented by hiring an experienced third party adjuster specializing in railroad insurance claims. Founder and president of, Ron Budra has over 45 years of railroad experience and can help insurance companies avoid settlement overpayment.

The Importance of Negotiation of Railroad Insurance Claims

Railway companies typically come to the table with an advantage over insurance companies following an accident. Railroads have a significant amount of experience behind them and have created procedures that maximum their settlement returns.

Very rarely does the defending insurance company have the experience required in railroad insurance claims to negotiate a fair settlement. Without a highly experienced railroad third party adjuster, the insurance company generally overpays the actual damages by a staggering amount.

Five Areas Associated with Railroad Insurance Claims

  • Equipment damage- Many claims try to include pre-existing damage and/or damage that never gets repaired
  • Track repairs- Many railroad insurance claims include track repairs not related to the actual accident
  • Loss-of-use and train delays- Claims often include a theoretical formula to claim a loss of business because of property damage
  • Salvage values- Railroad insurance claims are made for the full value of cargo and equipment even though equipment can be salvaged for parts or scrap metal and most or all of the cargo can still be delivered
  • Bodily injury- Railroad workers that claim bodily injury usually increase the claim amount to over $10 million, so it is important for the insurance company to guarantee the worker was following all rules and regulations

A third party adjuster experienced in railroad insurance claims has the ability to guarantee that claim settlements are fair to both the railway and defending insurance company. By working with Ron Budra, an insurance company can usually save hundreds of thousands of dollars in a railroad accident.

To learn more about overpayment in railroad insurance claims, please contact Ron Budra with at (302) 743-4768 for a free consultation.


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