There’s literally thousands of car clubs worldwide, some big some small but they are out there nonetheless. For those that are established, getting or planning to be if you’ve ever thought about if your club had an event or cruise and something went wrong such as an accident, fight, or worse who’s held responsible? If you think or thought the fault or blame can and will go to, those who caused it, manufacturers errors, and so forth you’re wrong. “Your club is”! Why? Because your club held the event, which is the umbrella of everything that takes place that its name is involved in. Take a look at these FAQ’s

Question: When your club rents a building for a meeting or function are you insured?

Answer: No or maybe, unless the club has it’s own policy. The moment the building is rented the owner of the building is no longer fully responsible (shared responsibility) for loss resulting from negligence caused by the renter. (The building burns as a result of a smoker in the washroom, swap meet gasoline fire etc.)

Question: When your club uses a parking lot for the start of a tour who’s responsible for third party liability? (A spectator trips and falls, a grandstand or podium collapses, etc.)

Answer: The club using the lot.

Question: When your club is serving any type of food who is responsible if someone becomes ill as a result of the food? (A bad hamburger.)

Answer: The club is responsible.

Question: Who is responsible if during a burnout at your show someone gets injured?

Answer: The executives & everyone who is a club member.

Question: Who is the club?

Answer: The executive and all of the members of that organization.

Question: Who gets sued in all those examples?

Answer: The executives & everyone who is a club member.

In the majority of cases many places will require car clubs to obtain anywhere from a $1,000,000.00-$2,000,000.00 Liability Insurance Policy in case any of those incidents above just happen to come about. These policies can range from $1,000.00-$2,000.00 in cost. The companies allowing you to use their property must be added to insure their name and interests as well. As we all know not all car shows go smoothly and if accidents or fights happen, many times the news will state the name of the show and who held it. The location also takes a hit, but not as severe as the club who held it.

Many car clubs do not have, know this and may never inquire nor be informed. In many cases when situations do occur those who were involved in the situation normally tend to address those who were involved in the incident rather than event. However they do have the right to sue those holding it a.k.a. the executive members of the club. A yearly insurance policy for a club that is active in cruises and events may be the best thing to have versus spending a thousand or more dollars, for each time you have an event or cruise this is a method to help save your club some cash.

If you are a club, in the process of establishing or planning to become “depending on what you do, plan to do, or how often you’ll do it” start, pricing insurance for your club. Also know that all insurance companies do not insure car clubs or events you’ll have to research to find out which ones do and best suit your needs. Also check with insurance companies to see if “Weather Insurance” may be offered. This insurance helps save events that may normally be postponed due to inclement weather this too should be researched. As mentioned prior all clubs don’t and won’t require insurance, but being knowledgeable helps. So why would your car club need insurance? Why wouldn’t it? That should be the real question. Trust me it can’t hurt. Plan safe and be safe.

By
Thomas B. Johnson II