Most racers think the basic insurance that they carry on their truck, trailer and shop covers everything. Racers might want to verify that, warns Darrick Barga, of AP1 Insurance.
“A lot of racers think what is inside the trailer is covered by their policy when it says the contents are insured,” Barga said. “I would question whether the insurance company knows that the insured is involved in motorsports. Many insurance companies exclude a claim when they find the customer is involved in motorsports. Insurance companies are tightening the reins on risks. I would advise racers to read the fine print. Call your insurance company and double check that your policy covers the hauler and contents of the trailer if they are used in motorsports.”
Barga goes over the list of property with his customers. The customer states true replacement value. Photos are required of everything listed on the policy.
“When a loss occurs, the first thing I suggest doing is immediately taking photos of everything related to the loss — photos of damage or break-in method,” said Barga. “Then, be sure there is a police and/or fire department report made.”
The same strategy applies for policies covering your shop. Document everything within its confines. If theft, fire, or other form of loss incurs, photograph the damage and how it occurred.
There’s also insurance for race cars.
“Our coverage is for any type of motorsports vehicle,” Barga said. “It is for the property value of the vehicle, including parts. [The policy] also covers physical damage of the shop, the hauler, and travel to and from a race. It includes theft and damage from vandalism, fires, floods and even tornados. It does not cover the car when it is in competition.”
Barga cited a recent example of a customer being properly insured and possessing the appropriate documentation.
“We had a customer who had an engine out of his race car, being serviced at a shop with no insurance, that caught fire,” Barga said. “The customer’s engine was lost. We had photos. He provided receipts for a replacement. We handed him a check for $40,000.”
Darrick Barga feels insurance for racers is relatively affordable. For example, a policy providing $100,000 in coverage, with a $1,000 deductible, prices out to be roughly $1,000 per year.
“Most oval-track racers have $200,000 to $300,000 invested in their equipment, spare parts, tools, and haulers,” said Barga. “Some racers don’t know there is insurance for racers. Others don’t think insurance is affordable for them. Some say they have insurance, but don’t know if there are exclusions for motorsports.
“We compete in the motorsports world and know the cost of equipment. We don’t want to lose $500,000 to a fire and not be covered properly by insurance.
“Look at everything you have. Do you want to be done racing if tragedy strikes? Do you want to immediately start over? The right insurance is a must for a motorsports team.”
Source
AP1 Insurance
877-452-3012
agprotect1.com
Mike Adaskaveg has written hundreds of stories since the website’s inception. This year marks his 54th year of covering auto racing. Adaskaveg got his start working for track photographer Lloyd Burnham at Connecticut’s Stafford Motor Speedway in 1970. Since then, he’s been a columnist, writer, and photographer, in racing and in mainstream media, for several outlets, including the Journal Inquirer, Boston Herald, Stock Car Racing, and Speedway Illustrated. Among Adaskaveg’s many awards are the 1992 Eastern Motorsport Press Association (EMPA) Ace Lane Photographer of the Year and the 2019 National Motorsports Press Association (NMPA) George Cunningham Writer of the Year.
