Let’s take a closer look below to discover which type of insurance is best for your promotion business.
Coverage you should have includes:
Insurance for motorsports events should be comprehensive and provide coverage for spectators, participants and all aspects of your event.
● Spectator Liability
What happens if a spectator is injured during an event you are promoting? Spectator liability insurance protects you from lawsuits that arise from injuries or damage to property.
Keep in mind that spectators are only spectators as long as they are in the designated viewing area. For instance, if a spectator leaves the stands and goes into the pit area or other restricted areas, they are no longer a spectator. They must agree to sign a waiver that eliminates or limits your liability.
● Participant Legal Liability
Participants may include riders, workers, volunteers, or anyone who is participating in the event outside of a spectator. Participant legal liability protects you against a lawsuit brought on by an injury. It may also give you protection if a participant's property was damaged due to the event.
If someone is injured at an event you are promoting, they may claim that their injuries were caused due to your negligence. Again, all participants should sign a waiver that eliminates or minimizes your liability in case of injury or property damage. However, waivers do not always hold up in court. Therefore, you should have enough insurance to account for any risks.
● Product Liability
Something that promoters rarely think about is possible injuries that arise from defective or dangerous products. Risks can range from food poisoning to hazardous souvenirs.
Even if the manufacturer is ultimately responsible for a defective item, a victim could sue you for promoting it and selling it. Therefore, it’s important to ensure that all products you endorse are safe and that all food is sanitary.
How much insurance do you need for product liability? It depends on several factors such as the type of products you sell, your vendors, the size of the event, and the level of risk of injury. Your insurance provider can assess your insurance needs based on what you plan to sell or endorse.
● Personal Injury
In legal terms, a personal injury often refers to physical injury as the result of an accident. However, as an event promoter, you also face risks that exceed medical expenses or lost pay. Personal injury insurance protects you against other risks such as false arrest, prosecution, written or verbal slander, or invasion of privacy. It can also cover emotional or mental turmoil that occurs as a result of such actions.
Like product liability, personal injury is often unaccounted for. As a result, when you get hit with a lawsuit, you may not be prepared for the financial burden, as these types of lawsuits can drag on in court for several months or years.
What to Consider When Purchasing Rider Network Insurance
Your per-event or annual premiums will depend on several factors, such as:
● The overall size of the facility
● The number of riders
● The total miles of trails
● The level of difficulty or hazard on the trails
● Other foreseeable risks
You should determine the worst-case scenarios that could put a significant financial burden on your business. What happens if a participant or spectator becomes permanently disabled?
Could your business survive bad press if someone publicly slanders your name? How can you afford to get mixed up in a product liability suit?
Remember that racing events always draw large numbers of people. Therefore, the risk of an injury, property damage, or lawsuit against you is high. Unless you have unlimited resources at your disposal, insurance is the only way to compensate someone for damages during an event.
Do You Need Liability Insurance for Your Event?
Jones Birdsong offers comprehensive insurance for race teams, promoters, individuals, and facility owners. We offer a personalized insurance plan that meets your needs and protects your entity. To find out more about your insurance options for the rider network, contact us today at (952) 467-6111 or message us on our contact page.