Motorsports come in many shapes and sizes, from Motocross to Stock Car racing, on-track driving classes and races with super tricked out vehicles. In light of the recent event involving NASCAR driver Tony Stewart in his Sprint car, I thought it would be a good idea to comment on the insurance programs for race tracks, vehicles, drivers, teams and sponsors for these types of events.
Race tracks typically carry liability insurance for participants, spectators and staff, and possibly accident insurance, depending on the insurance program they have in place. Optional coverages include event cancellation, prize insurance, liquor liability, and weather policies. Keep in mind that many times the driver will most likely sign a waiver of liability for the track and its sponsors, otherwise known as a “hold harmless agreement”, and under this agreement intentional acts are never covered.
Race teams, including the owners, should have “on track” coverage for physical damage to the trailer and vehicle, including coverage during practice testing and during any race, and “off track” coverage for storage and contents.
Optional coverages available are:
- Racing Owners & Sponsors Liability
- Disability Insurance
- Excess Liability
- Workers Compensation (depending on the competition level)
There are many events when even an everyday citizen can participate in speed contests and/or driving events. Your personal auto policy will not extend any coverage for these acts, but there are programs that offer this coverage. So before you sign up, strap in, and drive to your heart’s content, please make sure you have coverage… just in case you have an off-day and hit a wall.
Please contact me if you have any questions or would like to discuss further.
In closing, I will refer to wise words of a friend and racer… drive fast and turn left.