Motorsports Racetrack Insurance Maryland Policy Information
Motorsports Racetrack Insurance Maryland. Race tracks designed for motorsports such as auto racing, drag racing, kart racing, or motorcycle racing are permanent venues set up to facilitate exciting competitions of amateur or professional races.
Motorized vehicle racetracks are designed for competitive races featuring cars (Indy, Formula, or stock), motorcycles, or trucks (including "monster trucks") that can run over 200 mph. The racetrack may be open-air or covered.
Seating is generally stadium-style or in bleachers, although some permit visitors to stand directly outside the track perimeter. A stage may be added to the field to accommodate concerts or speakers.
Often private box seating or suites are available which can be leased to individuals or corporations. Racetracks usually have gift shops, locker rooms for drivers, private meeting rooms, restaurants, and snack bars. Liquor may be sold during events. Racetracks can often hold tens of thousands of patrons.
While increased awareness of health and safety measures has rendered motorized race tracks much safer than they once were in modern times, race tracks continue to face hazards inherent to their industry.
That is why it is essential for these facilities to scrutinize their insurance needs more closely than some other businesses. What kinds of Motorsports racetrack insurance Maryland coverage will protect against serious perils, however? You will find answers in this brief guide.
Motorsports racetrack insurance Maryland protects your racing facility from lawsuits with rates as low as $97/mo. Get a fast quote and your certificate of insurance now.
Why Do Maryland Motorsports Racetracks Need Insurance?
All businesses face both risk and uncertainty, and racetracks can fall victim to the same perils that could affect almost any commercial venture. A race track and its surrounding infrastructure could severely be damaged if it is struck by an act of nature, such as a wildfire, severe storm, or earthquake, for example.
Theft, including cyber theft, and vandalism are two more examples of common threats that can also cause significant financial harm to a race track, and as in any business, race track employees can sustain a wide variety of occupational injuries.
Race tracks also have risks unique to their field to consider. Imagine, for instance, if a racer were to become injured under circumstances that indicate the venue itself could have played a role in causing, or if a spectator were to get hurt while watching a race.
Costly lawsuits are almost inevitable in both cases. In addition, your venue is vulnerable to property damage as a direct result of the races that take place there.
Why do MD racetracks need to be insured? Some kinds of coverage may be mandated, of course, while others will be required by lenders. At the core, however, racetracks need to arm themselves with excellent insurance because doing so gives them peace of mind that they will not need to face the financial burden associated with major perils on their own.
In the most severe cases, your motorsports racetrack insurance Maryland choices can make the difference between bankruptcy and continued success.
What Type Of Insurance Do MD Motorsports Racetracks Need?
Each racetrack is unique, not just because it may be dedicated to a particular motor-racing sport or be designed to facilitate a variety of sports, but also due to other factors - such as its location, terrain, the size of its operation, the equipment it owns, and its number of employees.
These and other factors also determine the motorsports racetrack insurance Maryland policy needs. It is, therefore, of paramount importance to consult a commercial insurance broker who specializes in designing coverage for motorsports facilities and events.
With that in mind, some of the key types of insurance a MD motorized racetrack should carry include:
- Commercial Property: Designed to protect you from financial losses arising from property damage or loss due to perils like acts of nature, theft, and vandalism, this type of insurance is essential to any business with physical assets. It will cover your physical structure as well as outdoor assets and equipment.
- Commercial General Liability: This type of motorsports racetrack insurance Maryland coverage exists to help cover your legal costs in cases where third parties allege that they suffered physical harm on your premises in situations where you may be held responsible, or in which they allege that your business was responsible for damage to their property. It even covers allegations that your business used another's intellectual property without prior consent.
- Participant Accident: While general liability coverage is likely to take care of claims relating to vehicle damage, participant injury and accident claims require this separate form of insurance. These policies can provide coverage for legal as well as settlement fees.
- Workers' Compensation: Employees can sustain injuries in any workplace, and racetracks are no exception. Should this happen, workers comp insurance covers the employee's medical expenses, as well as any lost income as they recover.
Bear in mind that MD racetracks have a unique risk profile. Not only may a racetrack require additional forms of coverage not mentioned here, it may also be hard for them to find the right insurer.
Because of this, it is vital to consult a skilled and experienced commercial insurance broker to help you meet your motorsports racetrack insurance Maryland needs.
MD Motorsports Racetrack's Risks & Exposures
Premises liability exposure is high due to the large numbers of visitors on premises and the strong emotions that can arise between rival fans during races. The racetrack should meet all public and life safety codes to assure guest safety.
Racing vehicles or their parts could leave the track and injure a spectator. All spectator access must be strictly limited with effective barriers restricting access to the vehicles.
Good housekeeping is critical to preventing trips, slips, and falls. Adequate lighting, marked exits, and egresses are mandatory. Steps must have handrails, be well-lighted, marked, and in good repair. Parking areas should be well maintained and free of snow and ice.
Security at events, as well as in the building, corridors, and any owned parking area, needs to be carefully checked and reviewed. There should be an evacuation plan for emergencies. Burning fuel may result in fire, smoke, fumes, and vapors spreading to neighboring properties. The racetrack may present an attractive nuisance hazard when not in use.
There must be adequate security to prevent unauthorized entry to children, vandals, or would-be terrorists. Contracts with suppliers, vendors, event planners and performers must be clear as to all responsibilities. Personal injury losses may occur due to alleged assault, discrimination, invasion of privacy, or wrongful removal.
Products liability exposure can be high if the racetrack operates the restaurants or snack bars. Employees should be trained in the proper handling of consumables to prevent foreign objects in food, food poisoning, or the spread of other transmissible diseases. Other product liability exposures can arise from gift shops. If these are contracted out, the racetrack should verify that the operators have adequate liability coverage.
Environmental impairment liability exposure is high due to the potential for contamination of air, surface or ground water, or soil from spillage or leakage of storage tanks or the collision or overturn of vehicles. All storage and disposal procedures must meet federal and state regulations.
Liquor liability exposure can be extensive. All servers must be trained in checking IDs and refusing to serve intoxicated patrons. There should be a "cut-off" time well before the end of the races to prevent visitors from excessive alcohol consumption prior to driving home.
Workers compensation exposure is high. Employees may be struck by vehicles or hit by their debris. When vehicle racing is done, hazards result from the fueling operations and other services by the pit crews. Ongoing exposure to noise levels can result in hearing impairment.
Food operations can result in cuts, scrapes, and burns. Grounds maintenance, cleaning, and general maintenance operations can result in lung, eye or skin irritations and reactions. Employees who set up, build, or transport stage settings, equipment, lighting, and scenery may be injured by cuts, puncture wounds, electrical shocks and burns, slips and falls, or back injuries, hernias, strains and sprains from lifting or working from awkward positions.
Stage and lighting setup may involve aboveground exposures that need additional protection and precautions to prevent employees from falling and from being hit by falling objects. Hawkers, peddlers, and vendors employed by the racetrack to sell wares in the stands have a high potential to falls due to limited visibility as they ascend and descend steps while carrying items to sell.
Adequate security and training must be provided to employees handling money in ticket booths, gift shops, and concession stands to reduce the possibility of injury due to holdups. Security personnel should be trained to deal with both holdups and unruly patrons.
Property exposures are very high due to the potential for fire and explosion from the fuels and lubricants used in pits and the garages. Extinguishing equipment must be easily accessible wherever there is a vehicle. Oily rags should be kept in National Fire Protection Association (NFPA) approved metal containers to prevent spontaneous combustion.
Tire storage must be at a distance from the pits and any heat generating operation. If there is painting and welding, it must be conducted in controlled areas away from other operations.
Additional exposures come from the extensive electrical wiring for lighting, sound systems, and other electronic equipment. These must be in good repair and adequate for the equipment used. Event performers will often bring their own equipment that must be fitted into the electrical system provided by the racetrack. Circuit breakers and/or fuses must not be able to be overridden.
All cooking equipment in restaurants must be properly controlled. Smoking is permitted at most tracks, so disposal of cigarettes should be a major concern. Poor housekeeping, such as failure to collect and dispose of trash on a regular basis, could contribute significantly to a loss.
Racetracks may be a target for theft and vandalism. Appropriate security controls must be taken including physical barriers such as fences or gates, lighting to deter access to the premises after hours, and an alarm system that reports directly to a central station or the police department.
Business income and extra expense may be high due to the unavailability of backup facilities.
Equipment breakdown exposure may be high due to the heating and air conditioning systems, cooking equipment, electrical control panels, and lighting and sound equipment used for racing events. Breakdown and loss of use could result in a significant loss, both direct and under time element, if replacement parts are unavailable or repair time is lengthy.
Crime exposure is from employee dishonesty and money and securities. Employee dishonesty coverage should be extended to include volunteers. Background checks should be conducted on all employees and volunteers handling money. Employees who are in charge of ordering must not be the same who handle disbursements and billings. Frequent inventories and audits must be conducted for adequate monitoring.
If tickets are sold at the racetrack, a significant amount of cash may accumulate. Money should be stripped regularly from cashiers' drawers in order to prevent a large buildup of cash.
All money should be double counted, and cashiers must be held accountable for shortages. There should be a centrally located, locked cash room with a guard on hand to protect the employees and money.
Inland marine exposures are from accounts receivable if the racetrack bills customers, audio-visual equipment, computers, contractor's equipment, and valuable papers and records for contracts. Duplicates must be made of all data and kept off premises for easy restoration.
Contractors' equipment will be needed for grounds and building maintenance. Bailees customers may be needed if the racetrack is responsible for drivers' gear, equipment of the vehicle owners, or property of visiting entertainers.
Commercial auto exposure is generally limited to hired non-owned for employees running errands. If there is transportation of drivers, their crews, guests, performers, officials, or other visitors, the exposure increases.
If there are owned vehicles, they must be maintained on a regular basis with all service documented. MVRs must be ordered regularly on all drivers. If valet service is offered, garagekeepers coverage will be needed.
Motorsports Racetrack Insurance Maryland - The Bottom Line
To protect your racing operation, employees and spectators, having the right motorsports racetrack insurance Maryland coverage is vital. To discover what type of coverage options are available to you and how much it will cost - speak to a reputable commercial insurance agent.
Maryland Economic Data And Business Insurance Regulations
Business owners that have their sights set on Maryland should to take a number of factors into consideration before the set up shop; namely, they need to determine if the state offers favorable for business owners in general, as well as their specific industry. After all, it doesn't matter how top-notch the products and services a business offers may be, if the location isn't favorable for the industry - and businesses, in general - the operation is going to have a hard time thriving.
Below, we examine key factors that indicate whether or not Maryland is favorable for business owners. We also look at some of the must-have types of commercial insurance coverage that are required in the state.
Economic Trends For Maryland Business Owners
A state's unemployment rate is key indicator of whether or not the climate is favorable for business operations. As of May, 2019, the unemployment rate in the Old Line State was 3.8 percent; 0.2 percent higher than the national average. In October of 2022, the rate hit a record low of 3.7 percent, so in less than a year, the unemployment rate has increased by .01 percent; a marginal increase. However, there have been gains in recent years; in 2010, the rate was 7.8 percent; that's a 4.0 percent increase in less than a decade.
The best place to start a business in Maryland is in Baltimore, the state's largest city. Suburbs of the city also offer promising conditions for business owners, such as Ellicott City, Columbia, Fulton, Lutherville, and Elkridge.
The state of Maryland offers a friendly culture for business of all shapes and sizes; but, the industries that are see the most success in the Old Line State include:
- BioHealth and Life Sciences
- Advanced manufacturing
- Information technology
- Aerospace and defense
- Financial services
- Energy (specifically green energy)
- Hospitality and tourism
Commercial Insurance Regulations In MD
The Maryland Insurance Administration regulates insurance in Maryland. Commercial insurance is designed to protect business owners from potential perils; it also protects anyone that interacts with a business, including consumers, vendors, and employees. Having the right type of coverage is not only crucial to avoid serious financial devastation in the even that a catastrophe does occur, but certain types of insurance are mandated, meaning business owners must carry specific forms of coverage.
In the state of Maryland, business owners are required to carry workers' compensation insurance, which offers coverage for on-the-job accidents and illnesses that employees sustain, is also required. Other forms of insurance coverage that business owners may need to invest in depend on the specific industry; for example, companies that distribute or sell alcohol will need liquor liability insurance, and businesses that utilize vehicles for business-related operations should carry commercial auto insurance to protect their drivers and other motorists on the road.
Additional Resources For Arts & Recreation Insurance
Read up on small business arts and recreation commercial insurance.
- Amusement Parks
- Archery Ranges
- Athletic Fields
- Billiard And Pool Halls
- Bowling Alleys
- Cave Tours
- Dance Studio
- Disc Jockey DJ
- Drive-In Theaters
- Entertainers And Performers
- Event Planning
- Fairs And Fairgrounds
- Film Production
- Fine Art
- Guides & Outfitters
- Handball & Racquetball Courts
- Horse & Dog Racetracks
- Indoor Sports Complexes
- Interior Decorator
- Interior Design
- Motorsports Racetracks
- Photo Booth
- Recording Studio
- Recreation Centers
- Riding Stables
- Roller Sakting Rinks
- Shooting Ranges
- Skeet & Trap Shooting Ranges
- Ski Resorts
- Talent Agency
- Tennis Centers
- Video Arcades
- Wedding And Special Event
Commercial insurance policies for arts, entertainment and recreation are specialized policies that protect against the unique risks that arts and recreation businesses face.
Performing artists and companies, entertainers including musical groups, theatre groups, comedians and more, writers, performers, photographers, videographers, DJ's and so many other types.
Professional liability coverage (errors and omissions) is needed in these cases to protect their financial interests due to mistakes, errors or omissions by these professionals in doing their jobs. Fr example - a bride and groom did not like the way their wedding photos turned out.
Or a wedding planner might plan a lavish wedding, but the bride's parents who are paying for it did not like the way it went. There is a lot of gray areas with arts, and you need to be protected if your clients don't agree with you that your work was what the agreed to.
If your business is involved with children, you need to review your coverages very carefully so certain important protections are not excluded. Abuse and molestation insurance might be needed to fully protect yourself in this instance.
Minimum recommended small business insurance coverage: Business Income with Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Commercial Articles Floater, Computers, Valuable Papers and Records, General Liability, Employee Benefits Liability, Umbrella Liability, Hired and Non-owned Auto Liability & Workers Compensation.
Other commercial insurance policies to consider: Building, Bailees Customers Floater, Money and Securities, Cyber Liability, Employment-related Practices Liability, Business Auto Liability and Physical Damage and Stop Gap Liability.
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