When the accident involves damage to railroad property the claimed damages often exceeds $100,000. If the damage is excessive or bodily injury is involved, then claims might go up into the millions of dollars.
Because railroads have a lot of experience with rail related accidents they have well established procedures to maximize the value they would like receive from the settlement. However, an investigation by experienced claims adjusters has shown that the initial claimed damages are often beyond the real damages suffered.
Only very rarely does the defending insurance company have the necessary experience with railway insurance claims to be able to negotiate a fair and equitable settlement. The result is that the defending insurance company will often end up significantly overpaying the actual damages.