tmg57

Recently, I was reading my auto insurance policy and confirmed that my policy does not cover damage incurred in any track event. In addition, I saw that the policy specifically excludes coverage for track events under both the personal liability and vehicle liability provisions. While there are several companies that sell supplemental coverage for track events, it appears that all of those policies also exclude liability. Even though we sign releases at the track, releases do not provide complete immunity from lawsuits. Maybe someone can comment on how much liability risk we are really assuming at a track day?

hinchcliffe

Good question, I'm all ears on the responses

Matt Romanowski

PCA has a large policy that covers everyone who signes the waiver for liablility in the event of a lawsuit. It does not cover track damage, car damage, medical bills, etc. If you want more info on it, contact the National Insurance Chair Ken Laborde.

Tedster

At a recent Chicago region instructors meeting we were told the PCA's policy was there to protect PCA and not the instructors. Basically we are on our own.That goes for the drivers too. Best to assume if you do something stupid and somebody gets hurt that you will be sued. I suggest having a camera in-car to protect you from others' mistakes that you get blamed for. Not sure but this could backfire if somebody subpoenaes your video. Not a lwayer but I did stay at a Holiday Inn Express a while ago...

tonypai

I've discussed this with my buddies and we've never gotten a definitive answer but I don't think we'd like it.

You can buy DE insurance (Lockton) to protect your car but I don't think that covers damage to the track or to other vehicles. Some auto insurance companies might cover you on track but after they pay the claim you'll be dropped. Most companies have exclusions in there specifically for DEs and Racing.

The bigger question is if you have a serious accident on track or worse, in the paddock that sends someone to the hospital and they rack up large bills and you get sued. Not sure if your personal or umbrella policy will cover it. Maybe, maybe not.

I know the Audi club carries a large policy to cover the event and their instructors. I'm surprised that the PCA doesn't cover their instructors.

Matt Romanowski

You were told wrong. Like I said, if you want the truth, go staright to the man, Ken Laborde. His email is right here http://www.pca.org/AboutUs/Contacts.aspx

PCA does have a policy that covers instructors liabliities. It also covers club officers in their duties for the club. I'm not sure how your personal umbrella would work in one of these cases.

John's 991

I have Farmer's and they do not exclude DE events as part of my normal policy. I re-confirmed this year, just in case.

Steamboat

I researched this in 2010 and received this message from Ken Laborde at PCA National.

"I sent an email to a couple of our PCA regional officials who forwarded it to PCA National. Ken Laborde, PCA National Insurance Chairperson responded, "On the contrary our policy does provide defense and indemnity up to the $10MM limit for participants who have signed the waiver and get sued in connection with their participation in the event. Please let me know if you have any other questions."

I suspect other large organizations have similar policies but I would be very cautious of those smaller organizations running one-off events (charities, fun-runs, etc.) who may not have even asked the question. Also, generally speaking, a personal umbrella liability policy will not afford any protection for a track mishap. Hope that helps clarify.

tonypai

I'm less concerned with stuff on the track. Not to minimize the risks but anyone on track either in a car or working has assumed the risk. Plus the insurance for the event and the venue would provide some overlapping coverage.

Event insurance really isn't all that expensive and the venues we talked to required us to have some sort of policy in place before they would rent to us.

I'd be more concerned about hitting someone in the paddock. Race car with no insurance, you're suited up and ready to race, HANS, nets, etc. Low visibility. You injure someone while on your way to grid. What coverage do you have there?

Matt Romanowski

I think that answers your question on liability.

Yellow996

Just in case...put everything you own in your wife's name. That's what I did. I figure when she inevitably divorces me that it'll be much cheaper than lawyers anyhow.

mdrums

If someone sues me for millions they will never get it because I don't have it.

KevinGross

When I came onto the Club Racing scrut team, I asked the same question: were we indemnified? Our national lawyer was at that meeting and responded that we were. It is an important consideration, and there have been several lawsuits over the years which PCA and other car clubs have had to address.

Kevin
Catellus Engineering

Carrera GT

Brilliant solution -- two birds with one stone. The perfect win-win.

ProCoach

Having been involved with a myriad of club events where this question comes up often (as an organizer and as a participant), and with the caveat that I am NOT a lawyer, to be culpable, such an incident would have to meet the requirements of gross negligence, not just negligence. The track waiver shield, and the standard insurance cover almost every track requires the renters to supply proof for the event, form a reasonable, though not completely impermeable shield against such action. Otherwise, we wouldn't be able to do this!

The lack of success of numerous actions against PCA and others does help support this.

As an event organizer, most of the clubs I've been involved with have D&O coverage.

YMMV...