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459 Posts
Discussion Starter · #1 ·
Help me out w/this one if you guys can...

Let's say "Business A" -
wants to buy & prep a car and hire a driver to drive it for them in the SCCA Rally series... (pick a series - club/pro.. etc. )

I understand that SCCA provides insurance during the event....
But what is it that will prevent "Business A" from being sued in the event of an oopsie DURING an event?

Are there documents that show that SCCA is Liable?
and will provide coverage in case of said oopsie?

What if silly spectators get mashed?
What is to stop said spectators from suing "Business A"??

Wouldn't SCCA be liable? not sponsors?
How do i prove this?
documentation to show Attorneys etc..?

help?.... please....
I need to "prove" this to erm... ah... "Business A" :D

cheers -
reply if ya can help...
#215 SCCA Pro/Club Rally

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141 Posts
>What if silly spectators get mashed?
>What is to stop said spectators from suing "Business A"??

Generally speaking, there is nothing to stop somebody from filing suit. Whether or not the suit has merit is another thing entirely. The costs of litigation are not something that can ever be completely safeguarded against... it's possible that they can be reduced, though.

That's a risk that we all take just getting out of bed in the morning.

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1,194 Posts
Jamie, the answer you seek is on the scca web site.

"Genral Description:
This insurance is intended to protect SCCA and thier regions and members, and track ownerw, landowners and sponsors of the event, drivers and their crews and owners and SPONSORS of vehicles entered in and event from Bodily Injury, Property Damage, personal Injury or Advertising Injury clamis arising out of a covered incident at a SCCA event."


I would call Pete Lyons who's number is in the link above and talk to him about it. Of all the people I have delt with at SCCA he is by far the best, ie most knowlageble, responsive and helpful.

I remeber some details about SCCA insurance being secondary in some cases ie comes to effect after primary (your) insurance has run out.

I personally would look into putting the rally car in its own team/ corp., to add one more layer of shielding to the main company - but there are some tax reasons not to do this.

Another option for the company is to own an option to buy the car and other team assets at a set price thus the car would be owned by the driver but the company would control the asset if they are looking at it as security.

lots of ways to make it work.

Derek Bottles

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790 Posts
Jamie--IMHO it sounds like Business "A" wants to be added to event policies as an "additional named insured;" alternatively, they maybe seeking an indemnity from the SCCA.

Niether are likely to be available.

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2,120 Posts
There's no particular reason to add a car owner as an additional assured on the policy, as they are automatically covered for liability during the event. Also bear in mind that "the event" covers more than just stages and transits...for example, if you whack somebody on the knee with your car door at a parc expose, it's part of the event.

The owner of the car is the ENTRANT, and they're specifically mentioned on the policy. There are example insurance binders available on the SCCA.ORG "Insurance" page that might help in convincing the company.

Just about everything that's been said on this thread is fairly accurate...you CAN'T prevent a lawsuit, but a good liability policy can help there, too, as it will protect you from the bad lawsuits as well as the good.

Pete Lyons is indeed a good resource.

BTW, someone commented that additional assureds probably wouldn't happen. Every performance rally event has DOZENS of additional assureds...not a problem. It makes land owners and sponsors feel better to see their name, rather than be lumped under "property owners" and "sponsors."

Free legal advice - worth what you paid for it
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