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: 

General liability insurance 

Products liability insurance 

Completed operations liability insurance  

Garage keepers liability insurance 

Garage liability insurance 

Employment practices liability insurance (EPLI) 

Participant legal liability insurance 

Pollution liability insurance 

Directors and officers liability (D&O) insurance 

Professional liability insurance 

Umbrella insurance—This may provide an added layer of coverage if a significant liability claim exceeds the limits of your other liability policies. 

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. 

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.  

Commercial crime insurance—This may cover losses from acts of dishonesty (e.g., theft and embezzlement) by employees or other third parties. 

Cyber insurance—This may cover expenses that arise from data breaches or cyberattacks. 

Inland marine insurance—This may provide coverage while your equipment and tools are being stored off-site or transported over land. 

Workers’ compensation—This may provide payments for wage replacement or medical expenses if a race team employee suffers a work-related injury or illness.