Insurance

erikh

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As a fan and not a racer, I'm wondering what the insurance fee usually covers? I know racing is really expensive so when a buggy burns to the frame like at last year's Primm 300 or a truck gets trashed like the Baldwin's at Laughlin, does the owner just take in the shorts? I'm sure some of the teams where money isn't that big of an issue (can't quite image that though) it's not a big deal but for the "little guy" is there any protection, i.e. insurance?

Thanks in advance.

erik
 

Steve_Sourapas

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Erik,I know of no insurance that is available for a race vehicle if it is destroyed racing in an event,but it can be insured while it is being transported to and from the event.Also I purchase extra liability insurance to cover my racing team and sponsors because most promoters insurance policies only really covers them,read the fine print.Another good idea is to form a company for racing purposes that way you can cut your liability exposure and also if your car get destroyed you can at least take the tax loss which you couldn't do if you owned the vehicle personally.

BEERMAN
 

Mike_McCluskey

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Steve, what type of policy and how much coverage do you run? Also who is your carrier and what are their payment policies? (yearly, monthly, per race) When you go testing or even for a race situation do you require your co-drivers to sign a waiver? I went testing with a friend of mine and their policy is to have you sign a damage/injury liability form. PM me if needed. We need to look into this and need a place to start.

Thanks,
Mike

"You go nowhere real fast when your broke!"
 

Steve_Sourapas

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Mike,the policy is purchased two ways,you buy pre-run and testing coverage yearly and you must disclose your testing locations and I believe the cost for that is about $1500 for 2 million in coverage.The race event coverage is purchased on a race by race basis and it costs about $1500 a race and provides 2 million in coverage.Last year you were able to buy 10 million in coverage but since 9/11 liaibility coverage has been tough to come by.I believe the insurance broker name is Wood-Gutman and they are in Orange co.I'm not sure how easy it is to obtain insurance with this group as I know they have booted guys out of this group who they believed were high risk racers and used poor judgement in certain situations.In regards to co-riders signing a release form I think that's a good idea and I certainly do it but as long as there are lawyers nothing is bullet proof.

BEERMAN
 

Chris_Wilson

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Regardless of what you sign, "anyone can be sued by anybody for any reason".
BTW, what's the best type of corp to use for a privateer race team? LLC?
 

Mike_McCluskey

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Thanks Steve. Has anybody considered a drivers association that could pull resources and get a group policy for insurance and maybe some other stuff. Maybe this is a way to unite the racers for a good cause.
 

martininsocal

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Mike- This is a great idea as group would be much cheaper than individual policies. I have lloked at insurance and my carrier said noway nohow for liability during race day. If it has numbers on the side and is involved in a spped event, they refuse to cover. Liability for testing, etc, is no problem. They just won't cover races. That is through Farmers.

Martin

If your gonna go, go BIG
 

Mark_Weyhrich

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Liability insurance during racing and testing: Kathy Baker at Wood-Gutman Insurance Brokers; 714-505-7000.

For general liability/special events and physical damage on your car, you can contact Mike James. He is the guy who used to run the "Outlaw Racing" Class 5 car and now races a Jimco in Class 1. I will try to get his office phone number for you.
 
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