New Regatta Insurance Rates

[HRTV]

http://www.apba-racing.com/newslette...t01112DEC.html

New Regatta Insurance rates

Mark Wheeler, APBA President

APBA received a wake-up call in October 2011. The information came in a letter from K&K Insurance Group. This letter informed APBA that, due to risk management concerns, K&K would be unable to renew our regatta liability and participant accident insurance for the 2012 season. K&K’s risk management concerns centered on APBA events where individuals were allowed to enter restricted areas without signing a waiver. To emphasize this, K&K stated,
“As you well know, the waiver is our best device in defending you as our client.”
After seven weeks of hard work by APBA staff, APBA officers and, most importantly, the Hylant Group (APBA’s insurance agent), APBA has secured coverage for the 2012 racing season. American Specialty Insurance & Risk Services (ASIS) will provide regatta liability and participant accident insurance. APBA’s 2012 coverage from ASIS is comparable to our 2011 coverage from K & K. Predictably, costs have increased. Please see the table below for a cost comparison of the 2011 and 2012 rates. As in the past, where an event runs categories with different insurance fees, the event must pay the higher of the two fees. Also, clubs may schedule a Friday test session in conjunction with a Saturday and Sunday race with no additional insurance charge. Any testing done in conjunction with a race must be insured.
Please note that the rates below are for the 2012 racing season only. With good risk management during the 2012 season, rates could go down. With poor risk management, rates will either go up or, in the worst case, APBA will be unable to purchase insurance coverage.
In most cases, 2012 risk management requirements have not changed significantly from 2011. However, it is mandatory that APBA improve the enforcement of the requirements. Most importantly, we need to do a better job of making sure that everyone in the restricted area has signed the insurance waiver. To this end, the APBA Board of Directors (BOD) is in the process of putting new measure in place to aid compliance. A Risk Management Committee has been formed to make recommendations to the BOD. It seems clear that one of these recommendations will be a written test for risk managers, similar to the referee test. Our risk managers are hardworking people. However, we need to make sure that APBA rules and regulations are clear to them. In addition, the 2012 referee test will contain a section on risk management.
More details on these measures will be provided at the APBA national meeting during the Insurance Seminar and during the Referees and Officials Seminar.

Event Insurance Rate Comparison Regatta Liability and Participant Accident Insurance
Two-Day Event


Category 2011 Rate
(K & K) 2012 Rate
(ASIS)
Stock Outboard, Modified Outboard, and PRO $2,073 $2,488
Outboard Drag (in conjunction with SO, MO, or PRO event) no additional charge no additional charge
Outboard Drag (Stand-alone Event) $2,681 $3,210
OPC Non-Series Event $2,681 $3,210
OPC Series Event (PTT, Superleague, F-1 PROP) $3,401 $4,080
Inboard $3,355 $4,026
Inboard Endurance $3,355 $4,026
Inboard Series/UL/Valleyfield $3,910 $4,692
Vintage & Unlimited Vintage $1,265 $1,510
Jet River Racer $3,723 $4,468
Offshore $4,380 $5,390
Offshore with Large classes $5,475 $6,664
Radio Controlled Model $125 $149
Stand Alone Testing 50% 50%
Kilos 50% 50%

[raceboat61-S]

Gents,
Have the mishap statistics and increased claims reflected a requirement to raise rates? Have injuries by spectators or crewmembers who have not signed a waiver increased? I have attended about 8-10 races a year for the last 8 years, Race Directed at least 1 race per year including 2 Mod Nationals and I have never seen any K & K representatives at any race. How do they know we don't get all folks to sign the waivers? Insurance costs are one of the biggest anchors dragging our sport to the bottom. Clubs cancel races for a lot of reasons but insurance costs are one of the biggest ! For 2013 let's do a little more 'comparison shopping' for insurance. Other sanctioning organizations seem to get a reasonable deal? Mike Raceboat61-S

[propnuts]

Ouch, that stings

I understand why this happened, but that doesn't make it hurt any less. At an additional $400 per race this is going to cost SOA an extra $2800 this year. I consider us to be a pretty financially stable club, but we lost money last year. Add this hit and it puts us on a trajectory that doesn't lead where I want my club or sport to end up. I guess the only answer is what Mark said, be super dilligent about checking those wrist bands and keeping our risks in check. Auto rates go down when you don't have claims, APBA insurance rates COULD do the same.

PS, I bet Roy Blackwell would be none too happy about this

[doc 35-0]

Let's get rid of the medical part..They are difficult at best to get paid for an injury. Most have medical ins. We could get a better rate by lowering their libility. We can not continue on the up ward spiral.

[Staron]

AOF regatta insurance is less than $300 for 3 days of testing and racing each event. We do not carry medical. We do have a hospital trust fund that each member contributes to from his/her membership. If a racer is hurt the racer is allowed to petition to get help to pay for injuries. We are not in the business of medical insurance coverage. Just BOAT RACING coverage. We should be accountable for our own medical and insurance. Just a thought.
Carl Staron
AOF Executive Director

[raceboat61-S]

Gents,
I think that the portion of our premium for our medical coverage is actually pretty small....as is the benefit! The reality is that much of the premium is to protect the APBA from liability stemming from the acts of Race Committees. Race Directors, Referee's, Risk Managers, and race participants can and do dumb things that contribute to added danger and the potential for lawsuits. Insurance is to protect us from ourselves. Mike Raceboat 61-S

[Big Don]

Guys don't take this wrong but not many APBA bod members come on this site. if you are looking for answers you might want to go to the new APBA site.
Thanks Don

[blueskyracer]

Just a curiosity question.. When a APBA club sends in the money for their club race for the insurance dues does the money go directly to K&K or to APBA..

[AZ Outlaw]

Use to cut 2 checks...1 to APBA for sanction app., and 1 to K+K for Insurance

[mercguy]

disagree............

Let's get rid of the medical part..They are difficult at best to get paid for an injury. Most have medical ins. We could get a better rate by lowering their libility. We can not continue on the up ward spiral.

how many of us have medical insurance that pays 100% of the bill???? I am willing to bet NOT MANY, if at all............thinking the average is about 80%...............so, a $30,000 medical bill (easily obtained nowadays) would leave the racer owing $6000 or so.............having APBA Med insurance also, will cover that amount...........be it K&K or ASIS............it is needed............and the guy WITHOUT medical insurance would be so screwed and prolly end his/her racing career..........

PS: the real scam is the medical/insurance industry nowadays!!!!!!!!!

[David Weaver]

K&K at Races

I have left a race before and stopped to grab a bite before heading out of town. Just happened to park next to a K&K insurance car. Probably did not happen by chance. We all have to do a better job of monitoring who comes into the pit area.

[Fast Jack]

More APBA

I am glad the new Transparent APBA kept the members informed when this problem presented itself. How many insurance profesionals do we have that are involved in racing ? As with many industries who you know can play a big part in what you pay.

[raceright]

I am glad the new Transparent APBA kept the members informed when this problem presented itself. How many insurance profesionals do we have that are involved in racing ? As with many industries who you know can play a big part in what you pay.

This is one industry that is out of the good old boys control.

Makes no difference who you know insurance is Verry very difficult.

I don't know about other clubs but APBA is doing its best I believe.

There is plenty of insurances that are cheaper but the exclusions are numerous--and many cities would reject them. If you do not have all the exclusions addressed then the odds of large lawsuits and lack of coverage could cause severe financial hard ships on all involved including membership.

As many know this is one reason the USTS seeks and finds Sponsor monies to help pay for ever increasing boat racing costs.

[Dave M]

Well

I am glad the new Transparent APBA kept the members informed when this problem presented itself. How many insurance profesionals do we have that are involved in racing ? As with many industries who you know can play a big part in what you pay.

Didn't you check Facebook ? Or twitter ? Geesh, get with the times. LOL !! Kidding........

I wish them the best of luck in their insurance quests. But they should really, truly look at other alternatives. It won't be long and they are going to price themselves right out of the boat racing scene. And when I was injured participating in an APBA event, the insurance APBA provided was only secondary. If you don't have a primary policy, the APBA policy would only pay up to $20K I believe. That was the cap for any claim. Is it really worth it ? I guess that is up to each individual. Now I don't know if anything has changed as I have been lucky enough to not need it lately. I am also running very very few events with them, so I am really out of the loop.

Good Luck Mark.

[blueskyracer]

With the medical rates what they are you are nuts to race without some of your own coverage. $20,000 dont go very far these days