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IMBA Club Insurance Program

• Why Do Mountain Bike Clubs Need Insurance???

• Exposure to Litigation for Members, Volunteers, Directors/Officers

• People Get Hurt Riding Off-Road• Trail Building/Maintenance

Create Additional Exposure

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• Fear of Lawsuits Make Landowners Reluctant to Allow Use of Property

• Part of Running a Club as a Prudent, Tightly Run Organization

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• Personal Assets are NOT Immune from Litigation-even if club is 501 c) 3

• Volunteers Shouldn’t Be Exposed-They are VOLUNTEERS

• Volunteers May Assume Coverage-Directors/Officers At Risk for Not Providing Protection

• Exposure to Liquor Liability

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• Municipalities/Land Managers May Require Proof of Insurance

• Shows Responsibility• Time Trials-Additional Risk

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History• IMBA Program-Prior Broker• Original Goal of IMBA Program-

Provide Coverage for Clubs at Reasonable Price

• Prior Program Initially Worked• Club Exposures Changed-

Program Didn’t

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• Variety of Risks Mixed in Association Pool

• Program Written Thru Wholesaler

• Newer Exposures Are: Singletrack, TTF’s, DH

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• Extremely Unfavorable Renewal Conditions

• Many Common Club Activities Excluded (Those with Most Risk to Members/Volunteers)

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•Why Does IMBA Get Involved??

• Protection of Chapter Clubs• Oversee Program Specifics• Group-Economies-of-Scale/Pricing• Individual Clubs May Not Be Able

to Get Properly Written Coverage

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• Exclusions on Prior Program1. Trail Maintenance2. Trail Designing3. Trail Construction4. Power Machine Operation5. Trail Built Features6. Trail Cleanup Programs

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• Scott Chapin-Background/Bio• Economics/Mathematics

Major• Insurance/Risk Management-

17 Years• RJF Agencies-80th Largest

Firm in US

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• Worked At Bike Shop Prior to Starting Insurance Career

• Competitive Collegiate Runner, Skier, and Cyclist

• Active with Local IMBA Club-CAMBA

• Trail Building/Fundraising

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• Focus on Bike Industry Risks• Retail Bike Shop Program-

Proprietary• Race Insurance Program-

Proprietary• Club Program• Many Sports Organization

Clients

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• History Continued• August 2009-Presentation

for IMBA Economic Impact of Trail Building (Cayuna Project)

• Learned of IMBA Insurance Issues

• Short Time-Line to Build

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• Building the Program:1. Risk Exposure Analysis with

IMBA2. Listed Common Club

Risk/Exposures3. Prospective Carrier-

Comfort Level of Full Disclosure

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• Sample of Identified Risks:1. Trail Building-Mechanized, Non-

Mechanized, Hybrid2. TTF’s-Wooden/Earthen3. Use of Power Machines-Chainsaws,

Brush Cutters, Mini-Excavators4. Volunteers, Members,

Directors/Officers5. Trail Maintenance-Brush Clearing,

Downed Trees

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• Sample of Identified Risks:6. Trail Signing7. Social Events8. Liquor Liability9. Education-Trail building

Clinics, Skills Clinics10. Social Rides

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Sample of Identified Risks11. Festivals-Trail Tours,

Fundraisers12. Weekly Time-Trails13.DH, XC, Skills Centers14.Trail Designing/Building

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• RJF to 10+ Carriers• 2 Carriers Proposed• Both within $15,000• Internal Actuarial Rating• Named Insured: International

Mountain Bicycling Association• Additional Named Insured-

Clubs

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• Who is Covered?• Club Members• Volunteers• Employees• Directors/Officers (for GL)• Additional Insured-May be

Provided

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• Risks/Exposures-Clubs1. Injuries on Trails

Built/Maintained2. TTF’s-Higher Risk Level3. Injuries to Non-Club Members

(elevated risk)4. Defense Costs for Alleged

Claims5. Personal Injury Attorney will sue

all parties

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6. Landowners-Recreation Use Statutes may Protect Landowners(not clubs)

7. Individual Members Personal Assets At Risk (Misconception)

8. Teeter-Tot Claim-$500,000 Open Reserve

9. Oregon-DH Area/Camper >$2,000,000 Paid (Other Examples in Managing Mountain Biking Pages 184-5)

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10. Rider May Not want to Litigate-Spouse/Family Member May

11. Paralysis-Worst Case Scenario12. Injuries/Negligence

Maintenance of TTF’s/Trails13. Maintenance Logs-Non-Earthen14. Signage

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1. Liquor Liability-Volunteers2. Time Trials-Removal of

Athletic Participant Exclusion

3. Festivals

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• Risk Management Solutions1. Avoid Signing Poorly Written

MOU’s-Indemnification/Hold Harmless

2. Avoid Additional Insured Language

3. Land Manager Demands AI/Request Reciprocating AI (Providing Free Value-Added Service)

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4. Avoid MOU “Specifics”-Maintenance Example

5. Alcohol (Festivals)-Outside Vendor, Liquor Liability AI Clubs

6. Power Equipment Training-Document Training (Stihl)

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7. Time Trials-Avoid Mass Start: Age Bracket of Interval Starts

8. Waiver for All Club Activities (Trail Building, Maintenance, Time Trials)

9. Signage of Skills Loops-Rating System-Independent Loops-Prioritization on Risk

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10.Properly Designed and Built Trails

11.Consistent Management of Trails

12.Have a Written Maintenance Plan

13.Team up With EMT/Responders

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• Sixteen Considerations for Risk Management Planning

1. Create a risk management team and designate a leader

2. Write a philosophy statement3. Establish a trail design and

construction policy4. Establish a trail inspection and

maintenance policy

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5. Maintain the trail system consistent with policy

6. Eliminate unreasonable hazards7. Develop an effective sign system8. Implement a trail difficulty rating

system9. Institute rules and advise visitors

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10. Develop an emergency plan11. Purchase or review an

insurance policy12. Create a record-keeping

system13. Develop an incident reporting

and analysis system

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14. Deploy a trail patrol15. Recruit outside advisors16. Perform periodic reviews of

the program

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• Common Insurance Misconceptions

1. Since our Club is a 501 c) 3, my personal assets are not at risk

2. Our Trails are on Public Land-We don’t have liability (Government and Recreation Use Immunity/Limitations)

3. Public Land Manager “said” we were covered (often only during the act of trail building)

4. Our Waivers Protect Us

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• Common Misconceptions5. Directors and Officers can

only be covered if a D&O Policy is Purchased

6. Workers Compensation Rules-Executive Director Position

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• Negligence 1) Duty of Care2) Breach of that Duty3) Injury or Loss4) Proximate CauseNegligent Lawsuit-Must Prove

All ofThe Above

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• Coverage Specifics-IMBA Program

• Limits of Liability:• $2,000,000 General Aggregate• $2,000,000 Products and

Completed Operations• $1,000,000 Personal and

Advertising Injury• $1,000,000 Each Occurrence

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• What is Covered?• Trail Maintenance• Trail Designing• Power Machine Operation• TTF• Trail Cleanup• Time Trials• Most Festivals

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• Coverage-Continued• Host Liquor Liability• Teeter-Totter-Excluded

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• Costs:• Based on Number of Members• Clubs with No Trails-$4 per

member• Trail Construction/Maintenance-

$7 per member• Trails with TTF’s Greater than

36” above Grade-$8.50 per member

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• Costs:• $500 Minimum Premium • $600 Minimum Premium

(TTF’s Greater than 36”)

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• Types of Policies Available

1. General Liability2. Directors and Officers3. Inland Marine/Equipment4. Commercial Umbrella5. Race/Event

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• Mistakes Clubs Make1. Letting Insurance Expire-

Exposure to Volunteers-Board of Directors

2. Not Checking P.O. Box3. Not Taking Insurance Duties

Seriously4. Not Paying Attention to IMBA

Communications

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5. Not Taking Board Duties Seriously

6. Not Acting “Like a Business”7. Not Following By-Laws

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• Services provided by RJF• Certificate of Insurance• Review of MOU’s (I am not

an Attorney)• Sample Waivers• Risk Consulting

Economy & Finance

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