Insurance Saga, Part 2:
"It took a few weeks, but NHRA and Wisenberg returned my calls"
I have to admit it surprised me when our calls to NHRA, IHRA and Wisenberg
Insurance basically went ignored. At first I thought they were ignoring
the questions but I suppose it takes all corporations this long to make
an "official reply" to an independent questionnaire. I am glad they
answered the questions I sent them. You will notice the answers are
similar but it is the little differences I want you to notice. Things
like maximum benefits, when you start to receive them and what the real
risks you and your family assume once you get to the races. I did not
write this article to make anybody worry about going to an event, I
just want to make everyone aware of how important it is to think "safety
first" when you get there.
I did get a response from Len Imbrogno at NHRA. He faxed me the basic
insurance coverages and told us Tom Compton, president of NHRA, thought
this was an important subject and wanted to do an interview. I am still
waiting for that call after three weeks, but Cary Menard, NHRA VP of
Business & Legal Affairs, answered every question I asked. My calls
to IHRA have gone totally ignored and Wisenberg told me the person I
had to talk to would be back in the office in about a month. Jeff Pozmantier
did respond last week on behalf of Wisenberg and I appreciate that.
I have had several discussions with insurance underwriters and agents
with the company I work for. Their input was very helpful in answering
some of the questions I brought up in my article last month. When it
comes to insurance coverage and claims they are very similar so I have
decided to answer my questions the best way I know how. I will not guess
at the answers as that will not help the racers and their families become
more knowledgeable about what sort of coverage and protection is in
place in case of an accident.
Here are the questions I faxed to NHRA, IHRA and Wisenberg and the
answers we came up with. If I am in error I hope NHRA, IHRA or Wisenberg
will quit sitting on their hands and call me so I can get the best answers
available.
QUESTION 1
When my wife and I enter the track we are "required" to sign the Release
and Waiver. Why does she have to sign it if she is really just a spectator?
In my personal experience operating a drag strip for about 15 years:
If the track has your signature on a Release and Waiver it will be
more difficult to make a claim against the track or sanctioning body
or another person. Plain and simple, they don't want claims that they
are not in control of.
NHRA answer:
Certain areas of each track are considered "restricted areas." Ordinary
spectators are not allowed to enter those areas. Racers and crews do
need to access the restricted areas. In order to be allowed in to the
restricted areas, the insurance company requires each person entering
the restricted areas to sign a Release and Waiver. Sometimes, a track
might require everyone entering through the "back gate" to sign a Release
and Waiver, since those people may need to be in the restricted areas.
Ordinary spectators who enter through the spectator entrance generally
are not asked to sign a Release and Waiver.
Wisenberg answer:
The insurance company requires anyone entering a restricted area to
sign a release. If your wife is entering a restricted area with you,
even briefly, she should sign the release. If she never enters a restricted
area, it is possible that the track you are at, in an effort to be sure
that everyone who should sign a release does, just requires everyone
to sign a release.
QUESTION 2
What determines the difference between "spectator" and "participant"
at an IHRA or NHRA event?
In my personal experience operating a drag strip for about 15 years:
The Release and Waiver determine whether you are a "participant" or
"spectator". Once you have signed the Release and Waiver you will fall
under the coverage guidelines for participants. If your wife or children
sign this Release and Waiver I recommend they become members in IHRA
and/or NHRA, as the benefits for members are far better.
NHRA answer: "Let's start with the easy part first. Racers and crew
members are always "participants." They are actively participating in
the racing activities. Other people who enter restricted areas -- whether
they be sponsors, spouses, event workers, performers or anyone else
-- are also considered "participants" because they are in the restricted
areas where racing activities occur. A "spectator" is someone who is
just there to watch the race and stays only in the parts of the track
that are open to the general public and are not considered "restricted
areas."
Wisenberg answer:
Anyone entering a "restricted area" is considered a participant. Also,
racers and crew members are always considered participants.
QUESTION 3
If another racer backs into my race car in the staging lanes does the
track insurance offer coverage for damages?
In my personal experience operating a drag strip for about 15 years:
If both racers have signed the Release and Waiver it is doubtful. The
outline of the policy does declare there is up to $50,000 in coverage
for race vehicles of "others" if damaged in a "restricted area," subject
to $5,000 deductible. First thing to note here is the "restricted area."
That is the burnout area, the race surface and the return road area.
If you can prove the track was legally at fault and damaged your property,
it looks like there is potential coverage. The problem will be the "Release
and Waiver." But the underwriter I talked to said it is difficult to
think a victim of someone else's negligence or victim in an accident
can sign away their rights to recover damages. This one would be for
the courts.
NHRA answer:
This question can be taken in two ways. If you are asking if the track
offers some kind of collision insurance for racers , the answer is that
we are not aware of tracks offering coverage for collisions or other
similar accidents. Therefore, neither the track nor NHRA offers any
coverage for damage to race vehicles. You should check your own insurance
policy for your racing vehicle on this subject. If you are asking if
the track's own liability insurance coverage would pay for your damage,
the answer would probably be no. There are many possible hazards and
risks in the sport of drag racing, and one of them is an accident in
the staging lanes. Racers are presumed to understand and accept risks
inherent to the sport, under a legal doctrine called "assumption of
risk." Moreover, the Release and Waiver that all participants must sign
should bar any recovery from such an accident.
Wisenberg answer:
This type of incident is considered an assumed risk of drag racing
and it is likely the release the racer signs would preclude any recovery.
The track's liability insurance could apply if the track could be held
legally liable despite the racer's assumption of risk and the signed
release, but that is not likely.
QUESTION 4
When I race my street legal car in the Trophy class or at a special
"Street Car Day" at the track and I sign the Release and Waiver does
this VOID my regular car insurance coverage?
In my personal experience operating a drag strip for about 15 years:
I got an immediate response from my own insurance company on this one.
YES, your regular coverage, both liability and collision coverage are
terminated if you are participating in a "timed or a speed event.".Read
you own policy as they may vary, but if you tear up your street car
(yes, it is rare but it could happen) you may not have coverage to get
it repaired and if you cause someone bodily injury you may not have
protection for these damages through your auto insurance. The "Participant"
coverage the tracks must buy may help out in this situation, but from
the previous response to question 3, I don't think so.
NHRA answer:
Signing the Release and Waiver is required by insurance companies in
order to be able to race. You are free to choose not to race, but you
can't choose to race and NOT SIGN the release and waiver. Racing is
a high-risk business. You should ask your insurance agent whether racing
is covered under your regular auto policy; it may not be.
Wisenberg answer:
This is unlikely, and it assumes your regular car insurance would apply.
Personal auto policies may not cover racing at all, regardless of whether
you do or do not sign the release. If you don't sign the release for
whatever reason, you will not be able to race.
QUESTION 5
Say someone, like your wife, kids or friend, is sitting in the bleachers
watching you race on a Saturday evening and when they walked down the
bleachers they slipped and suffered a major injury, like a broken leg.
Is there insurance coverage for them?
In my personal experience operating a drag strip for about 15 years:
This has to be the most common type of injury claim. Bleachers probably
cause more headaches for insurance companies than anything else. The
answer is YES, there would be coverage under Participant Medical coverage
if they had signed the Release and Waiver. If they were true "spectators"
they would have to file a claim against the track's liability coverage
and let the company investigate the claim to see if the track is legally
liable. An "Excess Policy" covers this type of loss if it is covered
under Participant Medical. I will explain that at the end of this article.
NHRA answer:
The medical coverage provided to racers and crew covers them even if
they are sitting in the stands. However, regular spectators are not
covered by the track's participant accident insurance. Your wife would
be free to make a claim with the track's liability insurance company,
which in turn would investigate the claim and decide whether to extend
coverage. The track's participant medical coverage applies to participants
in the actual event. The definition of "participants" includes racers,
even if they are sitting in the stands. If she is not a racer or crew
member, she would not have coverage, as the medical coverage does no
apply to spectators.
Wisenberg answer:
Their response mirrored that of NHRA.
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