STLPCA

For several years I've watched as an increasing number of other drivers' insurance companies amended insurance policy language to exclude DE coverage. Since my State Farm policy fully covered DEs I didn't pay careful attention nor think about liability issues.

Unfortunately, State Farm has (finally) amended its policies and I'm no longer covered for DEs. I know I can buy coverage that covers my car. But then I read the fine print.

Here's the kicker: the policy also excludes liability coverage or third party property damage above the uncomfortably low state minimum coverage. That means if I'm instructing (whether as driver or passenger) and get involved in an on track incident I have minimal liability or cost of defense protection from my insurance company. My net worth and future earnings are vulnerable. To add to the exposure, my State Farm umbrella policy is also excluded. Instructors have been sued/paid claims by students and/or passengers from DE incidents. It happens more frequently than you think and it's usually not cheap. There's at least one company that sells stand-alone DE liability coverage but it's expensive. And if you believe the track waiver protects you, talk to a few personal injury lawyers.

I'm not worried about PCA DE events since PCA's master liability policy covers its instructors, staff and volunteers. But I don't know about other DE sponsors. It would be prudent to carefully check your own policy to determine your coverage. If it's like mine, be concerned, be very concerned, whether or not you will be protected when you next instruct. I won't be instructing for any sponsoring group that doesn't adequately cover me for my volunteer work. We wear helmets to protect our heads, but what about our ASSets? Be prepared and CYA.

This has been a Public Service Announcement.

VERBOTN

Venting NOT directed at STLPCA:

This crap is going to or has ruined the sport. Everyone needs to man-up and understand that when they go on the track its at their own peril, period. Certainly many will disagree and throw up several "what ifs" but enough, we have free will to either get in a car or not. At the track we have assembled a group of like minded individuals that want to exploit the thresholds of their respective cars beginning with baby steps and growing into speed as their skill-set grows.

All this chatter about liability has made me re-think the whole thing and just not deal with it. The pittty is that several chaps took the time with me and I feel obligated (gladly) to do the same.

BrianKeithSmith

if somebody sues you, all you gotta do is let us know, and we'll collectively eliminate them from the gene pool...

lawsuit gone...

dave morris

OK, I'll ask. Do you have factual information to support this statement? When/what number of instructors have been sued? What organization were they instructing for? When you say "it's not cheap", please cite actual examples.

Chads996

+1 Speculation is as dangerous as the sport is. We need the real scoop on this.

C.

Veloce Raptor

In our PCA regions here, instructors are specifically covered by the uumbrella liabiliity policy that covvers each DE event. I'd be surprised if this is not the case nationwide, with all PCA DE events.





Professional Racing and Driving Coach

Bob Rouleau

Dave, Instructors are covered by a blanket policy at ALL PCA events. I believe that the OP refers to non PCA events which may or may not have a policy to cover us.

RSA333

In days past, I would have sued my PCA instructors for bad DE instruction (just kidding!). Although compared to actual racers who also instruct, PCA does have some really bad instructors.

I guess when I instruct, I am very conservative, and not bashful about kicking certain students out of the event if they continue to drive 'beyond their limits.'

About liability - I don't think this is a macho thing at all. It's like racing - if you own the car and can't afford to lose it - don't race it.

Barfly

The failure to assume responsibility in this society is nauseating. And it's only getting worse.

______
Jason

Veloce Raptor

It is encouraged and reinforced at all levels of our society, unfortuunately.

Bob, thanks.





Professional Racing and Driving Coach

bella1

Now that is what I call REAL TORT REFORM!!!

mdrums

STLPCA, when did the new language with State Farm about not covering DE's take place? I just went over this in detail with my State Farm agent a few months ago and I am covered.

gottagofast13

Ryan from the HPDE Insurance Program here. Because insurance is state regulated, insurance carriers often end up using different versions of policy forms in different states. Just because your friend in CA has a policy that covers DEs doesn't mean your policy in SC with the same company does as well.

Most of my friends with State Farm reported changes in their policy in 2005 and 2006. I was aware that NC and TX did not have the new exclusions targeted at DEs, this is the first I've heard that State Farm's policy in FL doesn't have a track exclusion. I would encourage you to review your renewals each year - most companies provide a "coverage update" that outlines any changes made to the new/renewal policy.

Back to OP topic, PCA, BMWCCA, and Audi Club all have master policies that are structured well to provide coverage for instructors. If this is a concern for you, bring it up with any other groups that you instruct for. If they can't show you high liability limits and an additional insured endorsment that names instructors, don't take your chances.

Our policy does provide physical damage coverage to a participant's vehicle while an instructor is driving it. Unfortunately for instructors, every participant doesn't buy this coverage. We have looked into providing liability coverage as an enhancement to our single-event physical damage coverage. Like the OP mentioned about the option he investigated, the premiums will be too high for most enthusiasts to justify the expense.

DogInBlack

Good thread. Safety to your person, safety to your passenger, safety to your family, and safety to your way of life.

It brings me to one of my pet peeves that I see as an instructor. When instructors take their students, especially, and others for rides, DO NOT drive with all you have. It is just that simple. I learned this by experience and observation. I have seen students try to make too big of a leap after riding hot laps with instructors. One of my students spun down the esses at Road Atlanta on the second lap after getting out of my car. And yes I was riding shotgun- that pucker taught me quick!

Now, I only give my student a ride at 1 or 2 tenths more than they are driving with a focus on 3 things and three things only- drive smoothly, drive consistently, drive courteously. That is it. If one of my non-track buddies wants a ride, I'll give him 7/10ths and generally they think we have won Daytona. I never give a ride to a random. There is no reason to showboat a passenger because of A) the safety risk and B) they don't know the difference. For students, we are there to instruct whether in the left seat or right.

As far as driving a students car, not in a million years. Even if it is an orange 997 GT3RS

.02, Off soap box, but I do like Brian's suggestion

STLPCA

My point in posting was to start a dialog and raise awareness because I've not seen this issue discussed here and IMO it's a potential timebomb.

I am only referring to instructor negligence liability claims, not damage to your car. I can handle the later, but can't self-insure, nor defend a $1,000,000+ lawsuit with a several $100k defense bill. If, knowing your exposure, you decide to accept the risk, that's great. I'm suggesting we all know what we're getting into and ask the right questions before we agree to instruct. Like it or not, this is a litigious society and there is exposure for a DE instructor who, ipso facto, holds himself out as an expert. The jury will probably not be composed of track junkies who e.g., will understand why you turned off PSM.

The liability risks are different than racing which is not analogous.

I know of 2 unpublicized instances of claims against instructors. One resulted in a $25,000 insured settlement to a (participant) passenger. I don't know the final disposition of the other (also insured). Since I don't have my ear to the rail, I presume there are more around the country.

As each of my State Farm auto policies (& umbrella) has renewed in the past 2 months I've received new policy language excluding high speed events on a track. This is new in my state. My agent (who is also a DE instructor) told me it is part of a SF national change effective as each policy renews.

+1. In a nutshell.