Keyman Insurance

Race drivers need insurance too!

Professional Indemnity Insurance for Race Drivers

by Monticello Speedway Insurance Team on July 22, 2014, no comments

Being a race driver can be complicated, and if you are giving advice, then you will need to take out a professional indemnity insurance policy to help cover you should you be giving advice.

For a race driver, this could include giving advice about:

  1. Which tires to use on the vehicle
  2. Which fuel to use in the car
  3. What tire pressure would be most appropriate for a given track
  4. The weather conditions of the track
  5. How to attack the course – when to speed up, when to attack your competitors

How Does Professional Indemnity Insurance Work?

A professional indemnity policy works by protecting you from any of the advice or recommendations you give to your team mates, other racing teams, or your crew should this advice lead to injury, financial loss or worse.

Do You Really Need it As a Race Driver?

This is an excellent question. In our opinion is the answer is ‘yes’.

Why do we think all race drivers should take out a professional indemnity policy? Well, due to the nature of racing cars, the danger involved and the potential for accident as a result of poor advice, then it’s a no brainer!

Do you really want a crew member or fellow race driver suing you because of some poor advice or a bad selection of car tires that caused them to crash and/or suffer damage to them or their vehicle?

I wouldn’t think so! This is why it’s extremely important to make sure not only you as a race driver take out a PI policy, but each of your crew members and team mates.

One of the benefits of everyone taking out a policy like together would be the opportunity to go on one ‘bulk’ policy wording which would cover everyone in your racing team for any advice that they give. This could save your racing team MILLIONS should some poor advice lead to a crash or injury to you or one of your team mates.

How Do You Get Covered?

The most common method for racing drivers to get a PI policy is to go online and source several professional indemnity insurance quotes from different insurance providers. We’ve found this page to be extremely useful for getting multiple indemnity insurance quotes: www.acay.com.au/professional-indemnity-insurance

Conclusion

If you are giving advice as a race car driver OR as a crew member, you MUST have a professional indemnity policy protecting you for the advice that you give.

If you don’t, you could end up costing yourself (or your team), thousands in dollars as a result of any poor advice you give!

So it really is that simple!

Take out a policy before it’s too late!

Professional Indemnity Quotes

Do You Need Key Person Insurance for a Race Team?

by Monticello Speedway Insurance Team on October 21, 2013, no comments

So you’ve decided that you need to take out key person insurance for the most important member of your racing team – the driver.

This is an excellent idea as without the driver, the racing team would lose an extremely important part of their program, as is extremely difficult to replace – especially at the last minute. The loss of an important member of any team can be extremely damaging to the overall health and success of an organisation – so it pays to make sure that you and your financial interests are protected should anything unforeseen happen.

Some good questions that the team should ask themselves when deciding to take out this type of insurance policy would be:

  • How easily can we replace this driver?
  • Will our team/business be able to continue to grow and be competitive should anything happen to our driver?
  • How much income will we lose as a result of our driver not being able to drive our car?
  • Are we able to continue running our race team without the driver?

These are just a few of the questions that a race team would need to ask themselves when weighing up whether they need to insure the key members of the team. The cost of not covering all the bases can be extremely high, with losses of income and overall business failure being a very real possibility should the driver no longer be able to compete.

We came across some excellent information about insuring a key man in a business or racing team from a financial services company. Several insurance websites outline a bit more about what can be covered, and what sort of benefits can be expected to be received should the race driver ever get injured or sick, and be unable to fulfil his/her duties as a part of the racing team.

Fortunately, there are options available to any racing team out there who wants to protect their interests should anything happen to their key people. Make sure you do your research, and investigate all the options out there – it could save your team thousands of dollars and months of lost work!

Key Person Insurance 

Finding the Right Insurance for your Key People and Employees

by Monticello Speedway Insurance Team on October 17, 2013, no comments

When deciding on whether to take out life or some kind of income protection cover for your key employees, there are a number of variables that need to be taken into consideration. If you don’t take out the right level of cover, you can leave yourself or your business exposed should anything happen to you, or any of the other key people within your business.

If your business’ success and profits rely heavily on the input and performance of one employee, then you should definitely consider taking out some kind of insurance policy to cover the business should anything happen to them.

Whether it be death, disablement, illness or injury, it is wise to make sure you have covered all the alternatives and unforeseen events that might prevent this key person from working.

Losing managerial skills, expertise and leadership of a key person within your business could result in incurring substantial financial losses as well as an overall reduction in business profitability. A number of other costs may also be involved in recruiting and training a replacement that is suitable to the business.

Other negative impacts to the business might be:

  • Loss of the business’ goodwill
  • Unable to repay debts
  • Loss of revenue
  • Having to rehire more people

This type of insurance can sometimes be expensive which is why it’s a good idea to consult your accountant and financial planner first. But the cost of not having the cover could be extremely higher should you end up with some kind of long term injury or illness.

Before you make your decision, you should compare a couple of different life insurance and wealth management companies, and see whether they offer some kind of insurance for key persons.

Be sure to stick around and visit this blog regularly to make sure you stay up to date with all the latest news and advice when it comes to protecting your greatest asset – yourself!