HTV Boats
Well-Known Member
- Joined
- Nov 8, 2006
- Messages
- 2,512
First off insurance is regulated state by state and by law never by the Federal Govt. When a group wants coverage in 50 states the company that writes the policy has liabilty under a varitey of rules and laws that are not standard state to state. So legal risks can get very complicated and covering all bases gets expensive. Add another country, (Canada) and now they have more posibilities. This limits the number of companies out there that do business in 50 states and foriegn countries. Sorry maple leafers your close but different laws
I have held licences in MN and Florida and there are big differences in how insurance operates and what they may be liable to pay out. I have seen a simple under $3000 claim pay a law firm over $600,000 because of laws in one state that do not apply in others.
So what do you really have? I know the the IMPBA policy has the organization, and members, plus property owners of the bodies of water as named or additional insureds specifically on the policy for 5 million. Important as you are primary and will be defended as a primary by a company that has dollar one to 5 million on the line.
Secondary or excess insurance. This is like your umbrella policy that uses your homeowners liability as primary and picks up after it is exhausted. It is important and reflects in lower rates if you umbrella is with the same company as your homeowners as then you have one defense team with a total vested interest rather than one who is on the hook for the 1st hundred thousand and would rather you surrender a judgement and they are done with legal obligations and the risk goes to the excess carrier who has more interest in defending you but you already surrendered and are half laid down. Can they make you surrender a judgement? Yep cause you gave them that power in the policy you signed before they will spend any resourses to defend you. Once the claim is made you must follow the insurance companies directions in order for them to defend you.
So now is that cheaper insurance out there primary or does it use your homeoners as kind of a big deductible and lower what they can offer.Take the small percentage of non homepowners or renters who are not insured as the larger percentage of our group has liability on their property policy already. That means you running at any pond or lake as an individual are already coverered by your own homeowners policy. If a group uses that for the first defense yes they can give you cheaper and broader secondary coverage. Sound familliar?
There is a reason leasing companies want to be a named or additional insured on auto policies. Take a step further you have an accident that you are the cause of at a race and your an IMPBA member. You don't have to use your homeowners for a claim. You use the better primary policy your dues got you. If you have a liabilty claim on your personal policy you might just be (probably) non renewed on your homeowners. Or if you want to change companies the new one rates you with a claim that you would not have as an IMPBA member. In some states you may not find a company that will take you with a liability claim for 5 years. Sound obscure well I have had to tell people just that and they blame insurance companies but they are for profit businesses and not monopolies unless your state laws make it very unprofitable to do business there. You buy insurance for the obscure things that happen in life. Not a place to cut corners as the big one may affect the rest of your life. Ask your agent what it costs to up a personal policy liability portion and you may find you get hundreds of thousands for maybe $20 more a year on a $400-2000 a year policy.
As a group if we keep our exposure minimal to regulated sites and events the costs stay down. I would like to see an actual NAMBA or AMA policy and read the fine print. There are many more factors in what drives costs that would take a novel here. You work your whole life and it could get wiped out in one stupid accident. I don't like loopholes and want my name on the policy. I don't want to be the one everyone says can't happen, "trust me"~!
Mic Halbrehder
I have held licences in MN and Florida and there are big differences in how insurance operates and what they may be liable to pay out. I have seen a simple under $3000 claim pay a law firm over $600,000 because of laws in one state that do not apply in others.
So what do you really have? I know the the IMPBA policy has the organization, and members, plus property owners of the bodies of water as named or additional insureds specifically on the policy for 5 million. Important as you are primary and will be defended as a primary by a company that has dollar one to 5 million on the line.
Secondary or excess insurance. This is like your umbrella policy that uses your homeowners liability as primary and picks up after it is exhausted. It is important and reflects in lower rates if you umbrella is with the same company as your homeowners as then you have one defense team with a total vested interest rather than one who is on the hook for the 1st hundred thousand and would rather you surrender a judgement and they are done with legal obligations and the risk goes to the excess carrier who has more interest in defending you but you already surrendered and are half laid down. Can they make you surrender a judgement? Yep cause you gave them that power in the policy you signed before they will spend any resourses to defend you. Once the claim is made you must follow the insurance companies directions in order for them to defend you.
So now is that cheaper insurance out there primary or does it use your homeoners as kind of a big deductible and lower what they can offer.Take the small percentage of non homepowners or renters who are not insured as the larger percentage of our group has liability on their property policy already. That means you running at any pond or lake as an individual are already coverered by your own homeowners policy. If a group uses that for the first defense yes they can give you cheaper and broader secondary coverage. Sound familliar?
There is a reason leasing companies want to be a named or additional insured on auto policies. Take a step further you have an accident that you are the cause of at a race and your an IMPBA member. You don't have to use your homeowners for a claim. You use the better primary policy your dues got you. If you have a liabilty claim on your personal policy you might just be (probably) non renewed on your homeowners. Or if you want to change companies the new one rates you with a claim that you would not have as an IMPBA member. In some states you may not find a company that will take you with a liability claim for 5 years. Sound obscure well I have had to tell people just that and they blame insurance companies but they are for profit businesses and not monopolies unless your state laws make it very unprofitable to do business there. You buy insurance for the obscure things that happen in life. Not a place to cut corners as the big one may affect the rest of your life. Ask your agent what it costs to up a personal policy liability portion and you may find you get hundreds of thousands for maybe $20 more a year on a $400-2000 a year policy.
As a group if we keep our exposure minimal to regulated sites and events the costs stay down. I would like to see an actual NAMBA or AMA policy and read the fine print. There are many more factors in what drives costs that would take a novel here. You work your whole life and it could get wiped out in one stupid accident. I don't like loopholes and want my name on the policy. I don't want to be the one everyone says can't happen, "trust me"~!
Mic Halbrehder
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