Legal Bidness

[mdaspit]

I'm wondering if any of yall put yourself or your race team into any kind of
"Limited Liability" legal instrument, to protect your personal assets from any kind of litigation?

[Kev43V]

Assets? what are those? now if someone wants some of my debt, pm me for my phone number. I will be happy to share ,you will not even have to sue me.... LOL

You bring up a valid point. yet in my state I think you will have difficulty incorporating a hobby(unless the hobby makes money). much of the paper work involves how you are intending to MAKE money not just spend it.
If you do not keep all those I 's dotted and T's crossed and abide by all of the other legal mumbo jumbo + meetings and minutes of meetings. you find yourself without legal protection of personal assets after all. But you have still spent a couple grand doing it. But remember we probably have as many sets of rules and regs governing LLC's and Corp's as we have states in the nation. so what is true for me probably is not relivant in your case.
it certainly is worth looking into especially for those with substancial amounts of assets

[Mrs blueskyracer]

Perhaps think about a good umbrella policy to add to your insurance portfolio

[rball82]

Life insurance

I am currently increasing my life insurance policy and had to submit a separate letter stating different questions such as:
1) what speeds
2)What orginization
3)How many years experience
4)what class
5)Have you ever been involved in an incident
6)how many races, and months of season

Has anyone else been through this and any advice?

[mdaspit]

certainly is worth looking into especially for those with substancial amounts of assets

Thanks Kev, I didn't think an LLC would work, just wondering if there was some other kind of deal out there.

Funny thing about assets huh...doesn't matter how many of em you have, but all you got is "substantial."

I have a good umberella policy, but as you can imagine, those guys have hard enough time saying "4 Wheeler".

"Boat Racing" puts me on their Watch List.

[Mrs blueskyracer]

I am currently increasing my life insurance policy and had to submit a separate letter stating different questions such as:
1) what speeds
2)What orginization
3)How many years experience
4)what class
5)Have you ever been involved in an incident
6)how many races, and months of season

Has anyone else been through this and any advice?

This is all part of their risk management, be sure to answer the questions accurately, if it is later deemed that you did not the policy becomes null and void. They also would have the option to attach an amendment to the policy that will not cover you during participation in boat racing. Or to not cover you at all.

Same is true for medical insurance, everyone should read their policies carefully there are times when you may possibly have not coverage for medical.

Again it is all part of risk management, they want to minimize their losses and if it is decided that what you are doing increases their risk of having to pay out they can decide to either not offer coverage or to "inactivate" coverage during the time to are participating in the "risky" activity.

[chicagopaul]

Are you self employed?

If so, do your own research, then consult an attorney, THEN tell your insurance agent what coverage you want.
Currently I am not self employed, and I have elected to pay for extended long term disability which, in my case, does not ask any questions and does not reference disqualifications or reduction in benefits except for drug abuse or attempted suicide.

But please make sure you research for yourself and don't take my advice as literal.


Paul

[Mrs blueskyracer]

Paul - I agree with you 100% I think that everyone should do their own research as all insurance companies/policies are different. But I would certainly research all policies, medical, life, liability to be sure that boat racing is not excluded in any way. Forewarned is forearmed, would hate to see someone have an accident and find out they had no insurance.

[Islandmon]

Paul - I agree with you 100% I think that everyone should do their own research as all insurance companies/policies are different. But I would certainly research all policies, medical, life, liability to be sure that boat racing is not excluded in any way. Forewarned is forearmed, would hate to see someone have an accident and find out they had no insurance.

This is a good reminder, to be honest I never gave it much thought.

[ram95]

Why not give the guys who advertise in Propeller a call, "Cover your Assets". See what they have to say.

From my experience, the insurance companies don't necessarily call out racing. They refer to such activities as "competition", "tests of speed", "while as a participant or crewmember", etc. General wording which definitely encompasses what we do. So if we do get creamed..., we're out-of-the-pool sodaspeak.

Even umbrella policies have these subtle exclusions imbedded in their mumbo-jumbo.

Good luck

[mdaspit]

Why not give the guys who advertise in Propeller a call, "Cover your Assets". See what they have to say.

Hmmm that sounds interesting. I don't get Propeller, but I'll check it out.

Thanks-

[Affholter66]

As an EX-insurance agent (note..EX)....NONE of the policies I sold covered "participation in racing events...as a "participant" (ie crew..racer..ect)..personal opinion only..but if we start suing other "participants" we're toast anyway. Hate to say this but the best advice would come from our auto racing brethren, reason being LOTS more of them and lots more "wrecks". I"m a former auto racer and was an insurance guy at the time and I couldn't find a friggin policy or rider to cover any of my so-called liability...gadda love the society we now live in that this is even a concern...GO FAST>>TURN LEFT>>AND WATCH THE HELL WHO GETS IN THE WAY...be safe ya'll

[Affholter66]

Are you self employed?

If so, do your own research, then consult an attorney, THEN tell your insurance agent what coverage you want.
Currently I am not self employed, and I have elected to pay for extended long term disability which, in my case, does not ask any questions and does not reference disqualifications or reduction in benefits except for drug abuse or attempted suicide.

But please make sure you research for yourself and don't take my advice as literal.


Paul

When/If details "come-out"....even with this type o' policy...they don't ask ??'s up-front...but ooooo we do "they" when there's a claim..and every BS clause or "exemption" that can....WILL be exercised....

[jeff55v]

Insurance.

I went to the hospital a couple years ago after falling out of my boat. I don't know if it made any difference or not, but when questioned by the health workers at the hospital, I always refered to my incident as a "boating accident". I never told them it was part of a racing event. Just to be sure.


Yes, my policy covered all but $50 of the bill.

I had a hard time explaining my racing suit hanging in the room, with a puddle forming on the floor beneath it.

[Affholter66]

Assets? what are those? now if someone wants some of my debt, pm me for my phone number. I will be happy to share ,you will not even have to sue me.... LOL

You bring up a valid point. yet in my state I think you will have difficulty incorporating a hobby(unless the hobby makes money). much of the paper work involves how you are intending to MAKE money not just spend it.
If you do not keep all those I 's dotted and T's crossed and abide by all of the other legal mumbo jumbo + meetings and minutes of meetings. you find yourself without legal protection of personal assets after all. But you have still spent a couple grand doing it. But remember we probably have as many sets of rules and regs governing LLC's and Corp's as we have states in the nation. so what is true for me probably is not relivant in your case.
it certainly is worth looking into especially for those with substancial amounts of assets

Kev...just wondering..I HAD inc'd my "hobby", due the fact I "attempted" to make it a "money making" prospect...have things changed? (was 10+ yrs ago)..and was really wanting to do it again....