IMBA Club Insurance Program - Frequently Asked Questions
By: Dan McKay of McKay Insurance Agency
Q: WHAT IS THE IMBA CLUB INSURANCE PROGRAM?
IMBA-affiliated clubs in the U.S. and Canada are eligible to purchase a special mountain biking club insurance policy from McKay Insurance of Iowa. The policy insures your club for liability arising from events like club rides, kids rides, meetings, trail maintenance, trail patrols, overnight camping, skills clinics, bike rodeos, and other club activities.
A standard policy costs $1.55 per club member, with a $200 minimum. The current policy starts on October 15, 2005, and extends to October 15, 2006. Visit McKay Insurance for details and an online application.
We suggest clubs purchase additional coverage for special events where a fee is charged and the public is invited. No additional coverage is needed for most events when no fee is charged and only members are invited.
IMBA receives no compensation or consideration from McKay Insurance. Dan McKay is an individual IMBA member and McKay Insurance is an IMBA Corporate Supporter.
IMBA encourages all race organizers in the U.S. (whether they are IMBA-affiliated clubs or not) to sanction and insure their races through NORBA.
Dan McKay and McKay Insurance has been working with IMBA since 1995 to protect mountain bike clubs from liability concerns. Since that time, he has become an expert on all matters of bicycle liability and is recognized as a supporter of trail advocacy efforts nationwide.
Q: WHAT DOES THE POLICY COVER?
The policy insures your club for liability arising from events like club rides, kids rides, meetings, trail maintenance, trail patrols, overnight camping, safety clinics, bike rodeos, and other club activities. Trips for Kids, Mountain Kids or Sprockids programs are covered if sponsored by an IMBA-affiliated club.
It also covers completed operations, which means that if your club builds a trail and is subsequently sued by a trail user on the basis of that trailbuilding, the policy will cover defense of the suit.
Special events involving the use of stunts or constructed technical trail features, as well as events such as pro rider demonstrations, are not covered.
Q: DOES THE POLICY COVER INJURIES ARISING FROM TRAILWORK?
Yes. If an insured club were sued because of such an injury, the insurer would defend the suit and pay all sums awarded, to the limit of the policy. The policy doesn't cover injuries arising out of incidents other than accidents.
Q: WHAT DOESN'T IT COVER?
It doesn't cover a lot of things, but the most notable exceptions are races and race-like competitive events such as observed trials competitions, jumping contests or freeride events. Special events involving the use of stunts or constructed technical trail features, as well as events such as pro rider demonstrations, are not covered. McKay sells race and contest insurance separately.
The policy also doesn't cover injuries arising out of incidents other than accidents, like fights or purposefully injurious behavior.
There is no coverage for errors and omissions claims such as misfeasance or mismanagement of the club. Breach of fiduciary duties and employment related practices are excluded.
Clubs may purchase an additional "Directors and Officers Liability" policy that provides protection for individuals and officials in their collective capacity as officers of the club for actual or alleged wrongful acts and errors and omissions. Examples of claims covered by this policy: Lawsuits seeking damages for discrimination, wrongful suspension of members, acts beyond the authority of the club, wrongful dismissal of staff, or failure to provide adequate insurance to members. Call McKay Insurance for an informational brochure and application.
This list is far from complete; you should never assume something is covered by your policy unless the policy explicitly states that the activity is covered. A copy of the policy will be posted on line at the McKay web page for your review.
Q: WHAT ARE THE POLICY LIMITS?
The policy has an aggregate limit of USD $2,000,000 per club, with a $1,000,000 limit for each occurrence. McKay can cover most requests for additional insurance, given sufficient time. Generally, McKay recommends that you contact them at least 30 days in advance of your need for increased coverage.
Q: WHAT ARE OUR CLUB'S RESPONSIBILITIES UNDER THE POLICY?
Of course, you are responsible for paying for the policy. However, that is not your only responsibility. You must also use waivers at events such as trailbuilding meetings and group rides. A waiver should state that participants will not hold the club responsible for any injuries that might occur during the event. The best way to get a waiver is to ask a lawyer from your state to draft one for your club. Laws governing waivers may vary from state to state and province to province. Contact McKay Insurance for a Waiver Check list that you and your attorney can use to draft a waiver. Waivers should be signed by all members when they join the club.
Q: IS THE POLICY AVAILABLE TO ALL IMBA CLUBS?
Almost all current IMBA clubs in the U.S. and Canada are eligible. Clubs outside the U.S. and Canada are not eligible. In addition, a few individual clubs are not eligible for the policy because their demonstrated liability risk is too high. Each club is individually underwritten to see if its activities and claims experience fit the guidelines of this special insurance program.
Q: IS THE POLICY AVAILABLE TO CANADIAN CLUBS?
Yes. All policies must be paid in American dollars.
Q: WHAT CAN CLUBS DO TO KEEP THEIR ELIGIBILITY?
The most important step is to know and control your liability and avoid lawsuits. State and local liability laws such as recreational use statutes are important in determining when your club will and will not be held liable for injury or damage. Clubs that enter into formal trail maintenance contracts with landowners or agencies may have increased liability. Many clubs find it very useful to develop a relationship with an attorney who can advise them on their liability exposure. Keep signed waivers on file for all members and participants of club activity.
Q: WHY DOES OUR CLUB NEED INSURANCE?
Many clubs obtain insurance for the first time in order to be allowed to conduct volunteer trailwork events on public land. This is a requirement imposed by many land agencies. Other clubs buy insurance because they want to protect themselves against lawsuits that participants in club activities might file against the club and its leaders. It is up to your club's leadership to decide whether acquiring insurance is in the club's best interest.
Q: HOW MUCH DOES THE POLICY COST, AND WHAT'S THE TERM?
The 2005-2006 policy costs $1.55 per club member, single or family, with a minimum premium charge of $200, for a policy that starts on October 15, 2005, and extends to October 15, 2006.
Q: WHO IS COVERED BY THE POLICY?
The policy covers anyone named in the policy as insured. It covers the club, the listed officers, directors, board members, and listed members of the club, as long as they are acting within the scope of their duties to the named insured, and any additional names added by endorsement. Policyholders can add private landowners and land managers to the policy; for details, contact McKay.
Q: HOW DOES THIS INSURANCE PROTECT THE PERSONAL ASSETS OF CLUB LEADERS AND LAND MANAGERS?
It protects those assets by providing means to defend a lawsuit with total costs, including any award in the event of an unfavorable decision, or any negotiated settlement, not to exceed the policy limit of $1,000,000 per incident.
Q: DOES THE POLICY PAY MEDICAL BILLS OF INJURED PEOPLE?
Yes, but the standard policy pays only in the event of an injury arising out of negligence on behalf of the club or its members.
Your club can also purchase additional accident medical expense excess coverage for its members and volunteers. The accident medical policy would not require a negligent act in order to pay out.
Q: WHO IS MCKAY?
McKay Insurance Agency is an Iowa-based business specializing in bicycle-related insurance. Dan McKay and McKay Insurance has been working with IMBA since 1995 to protect mountain bike clubs from liability concerns. Since that time, he has become an expert on all matters of bicycle liability and is recognized as a supporter of trail advocacy efforts nationwide. More information is available at http://www.mckayinsagency.com.
Q: WHO IS THE UNDERWRITER?
Lexington Insurance Company, part of the AIG Insurance Group, an A-plus (Superior) rated carrier by A. M. Best Company
Q: CAN I READ THE POLICY?
Yes. Contact McKay to obtain a copy of the policy. McKay Insurance will have the policy posted on its web page when it is issued by the company.
Q: HOW MANY CLUBS USE THIS INSURANCE?More than 200 IMBA clubs use this insurance.
Q: HAS ANY CLUB EVER FILED A CLAIM ON THE POLICY?
Yes. A few clubs have relied on the policy to defend themselves in lawsuits. For example, one club was sued for a trail user's injury, and the insurance company successfully defended the suit and enforced the club's waiver of liability. The cost of defending this lawsuit was paid by the insurance company. This type of coverage is included in the policy.
Q: HOW DOES MY CLUB FILE A CLAIM, SHOULD WE NEED TO?
In order to file a claim, contact McKay at 800.942.0283. An agent will assist you. Read the article "Bad Things Do Happen To Good Clubs!"
Q: IS IT POSSIBLE TO INCREASE THE COVERAGE?
Yes. McKay can cover most requests for additional insurance, given sufficient time. Generally, McKay recommends that you contact them at least 30 days in advance of your need for increased coverage.
Q: MORE RESOURCES?
IMBA Resources: Liability and Lawsuits
Freeriding and Risk Management: 15 Steps to Success
Bad Things Do Happen To Good Clubs!
For more resources about nonprofit organizations and the risks they face, visit the Nonprofit Risk Management Center.
IMBA suggests reading the Volunteer Risk Management Tutorial
Questions? Contact
