In particular, the Sidetrack Agreement is a contractual clause that protects the Company from any liability for any loss that may occur on the property on which the track is located. For example, the company enjoys legal immunity in the event of property damage. The Sidetrack agreement is an agreement between an owner and a railway company that adds specific exclusions to liability insurance coverage. The «side track» refers to a vast expanse of railway tracks that run through the landowner`s land. Liability insurance protects a company`s assets, such as . B a railway company, paying insurance claims and legal fees. The provisions of a ventway agreement limit the liability of the railway company. The diversion agreement is a kind of insured contract. The agreement could stipulate that the landowner undertakes not to obstruct or alter the access road or restrict the railway company`s access. The contracting parties agree to assume full responsibility if a breach of contract results in a claim. For example, the owner assumes full responsibility if failure to keep the branch line free of debris causes an accident and injury. Everyone accepts shared responsibility if the situation warrants it.
Diverted track agreements are developed when the design of a railway system concerns private property. Representatives of the railway company will contact the owner and ask for permission to build an entrance track on their property in exchange for financial compensation. .