August 18, 2022
Agency
Insurance for Race Teams
Motorsport race teams are involved in a highly competitive environment with many risks. Not only do they have to consider hazards they encounter on the track, they also face exposures while running the business side of their operations. A comprehensive insurance package can help cover hazards that may arise through these activities.
If you have questions about building your race team’s insurance portfolio, the knowledgeable professionals at K2 Insurance Brokers can help. Contact us today for more information. 
Why Do Race Teams Need Insurance?
Race teams function in a high-intensity, fast-paced environment on and off the track. Whether it’s a race, time trial, promotional event or other business activity (e.g., selling merchandise), organizations must be adequately covered to address the inherent risks. The right insurance portfolio can help accomplish that.
What Types of Insurance Do Race Teams Need?
Each race team has unique needs. Several types of insurance are available, such as the following:
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Liability insurance—This may provide coverage if a race team is responsible for a third party’s injuries or property damage. It may compensate the third party for their losses (e.g., pay for medical bills), and it may help pay the race team’s legal expenses (e.g., court costs, settlements, judgments) if they are sued. There are several types of liability, and each covers different exposures. Examples include:
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General liability insurance
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Products liability insurance
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Completed operations liability insurance
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Garage keepers liability insurance
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Garage liability insurance
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Employment practices liability insurance (EPLI)
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Participant legal liability insurance
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Pollution liability insurance
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Directors and officers liability (D&O) insurance
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Professional liability insurance
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Umbrella insurance—This may provide an added layer of coverage if a significant liability claim exceeds the limits of your other liability policies.
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Property insurance—This may provide repair or replacement costs if a race team’s property is lost, damaged or destroyed by a covered event (e.g., fire or severe weather). Financial protections for trailers, specialty tools and equipment may also be available.
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Auto insurance and on-track coverage—This may cover team-owned automobiles if damaged by covered events or in accidents. On-track coverage may also cover damage that occurs while a race or practice is in progress.
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Commercial crime insurance—This may cover losses from acts of dishonesty (e.g., theft and embezzlement) by employees or other third parties.
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Cyber insurance—This may cover expenses that arise from data breaches or cyberattacks.
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Inland marine insurance—This may provide coverage while your equipment and tools are being stored off-site or transported over land.
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Workers’ compensation—This may provide payments for wage replacement or medical expenses if a race team employee suffers a work-related injury or illness.
Each team’s risk profile varies and other coverages (e.g., event cancellation insurance, accident insurance) may be available. Speak with your agent to discuss options, limits and exclusions.
Contact Us
The experienced agents at K2 Insurance Brokers can help race teams secure the optimal insurance. Contact us today for more information.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
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