# Club Insurance



## 9GUY9 (Jul 14, 2007)

Our local club was formed about 3 years ago. In that time we have developed a managing board of 10 members representing hundreds of club members. As things stand now there is zero membership fee to be a club member. So it is tough to have a exact number of members.

We have worked with the County and City to develop two trail systems with approx 7 miles of trail. We have come to the point where we are researching club liability insurance. Our main goal is to protect the board members from liability. It is our understanding that general riding of the trails does not open us up to liability, however club trail work days, and future events may.

Would folks please share their experience in similar club manners and securing insurance to protect them selves?


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## slocaus (Jul 21, 2005)

Many replies, opinions, and options in this thread that started when IMBA stopped insurance unexpectedly and we all had to scramble. Towards the end of the thread there are many contacts offered. You really should browse that thread carefully, since what you ask is already posted there.

http://forums.mtbr.com/trail-building-advocacy/imba-insurance-ending-899262.html


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## Mark E (Feb 7, 2006)

It's not accurate to say "IMBA stopped insurance unexpectedly." What actually happened was that IMBA was no longer able to facilitate a national insurance plan for affiliated clubs and chapters after three separate underwriters refused to renew the policy. This was mostly because of multiple settled and pending claims that have changed the landscape for insurance in our realm-factors which IMBA certainly was unable to control.

Nonetheless, there are insurance options available today, and IMBA continues to offer resources for local groups seeking insurance. Educational materials are an important part of that, so if the OP has not already found the web resource below provides a good starting place.

More free, online resources are available here: https://www.imba.com/resources/liability-and-insurance

-- Mark

--

https://www.imba.com/resources/liability/introduction-risk-management-and-liability-mountain-biking

Overview of Liability for Mountain Biking

Presented at the 2008 IMBA Summit/World Mountain Bike Conference
Speakers: Pete Webber, International Mountain Bicycling Association; Jeff Jackson, Algonquin College

Liability and risk management are some of the most daunting topics faced by trail managers today. In our litigious society, exposure to liability cannot be taken lightly, and the ability to manage risks appropriately can make or break an operation. It seems like every time you open the newspaper, another lawsuit is splashed across the pages. The number of civil cases filed in U.S. District Courts more than doubled from 1980 to 2000, climbing from 113,000 to more than 259,000. The increasingly litigious nature of society is having a significant effect on trails. Landowners are reluctant to allow recreation on their property, government agencies are wary of building new trails, and non-profit associations struggle to find affordable liability insurance.

Despite these depressing trends, there is an opportunity. Liability concerns have focused and will continue to improve trail design and management practices, benefiting the environment and the trial experience.

Session Objectives

Share the basics of risk management for mountain biking
Discuss the principals of negligence and liability
Understand four general tasks to fulfill your duty of care
Share examples of mountain biking related lawsuits
Help prioritize needs and take action

Disclaimer: The information contained in this presentation is intended as a resource only and should not be interpreted as a standard. The information is not intended to constitute legal advice and should not be relied upon as a legal certainty. Any individual in need of legal advice on any of the matters discussed should consult with an attorney.

What is Risk Management?

Risk management is a systemized approach to incorporating safety into the mountain biking experience.

Two Goals of Risk Management:

Manage the risks on your trails
Minimize the losses from lawsuits

Why Bother with Risk Management?

Prevent injuries in the first place
Build your organization's "defendability" in the court of law
Shut down lawsuits before they start

It's common sense: A risk management program is better for riders, and will save your organization time and money in the long run.

Three Tasks to Manage Risks:

Design and build trails appropriately
Manage and maintain them consistently and responsibly
Acquire the protection of a sound insurance policy (or other risk transference strategy)

Understanding Risks vs. Hazards

The goal is not to eliminate risk, just manage it. After all, risk is one reason we love mountain biking. So how do you determine the level of risk that is reasonable? The trick is in identifying the subtle difference between a risk and a foreseeable hazard.

Risk is the voluntary taking of a chance. An individual can look down an expert-level ski slope and decide to go for it. It is his choice, a risk he is willing to take. Hazards are hidden, unexpected dangers.

Who is Potentially Liable?

If someone is hurt riding trails in your community, who can be found liable? Generally speaking, every organization involved in the trail's design, construction, and maintenance could potentially be named as a defendant in a lawsuit. This would include the landowner, the trail management agency, and even related non-profit groups... potentially everyone involved in the trail.

Types of Trail-Related Lawsuits

The most common lawsuits faced by trail managers are related to negligence. They occur when an injured visitor claims that a trail manager failed to design, construct, manage or maintain the trail with reasonable and prudent care.

Negligence: In legal terms, negligence is defined as, "the failure to use that degree of care that an ordinary person of reasonable prudence would use under the given circumstances."

Elements of Negligence

In order for a negligence lawsuit to be successful, the person filing the suit (the plaintiff) must prove all of the following four elements:

Duty of Care: They must prove that you or your organization could reasonably have foreseen that your actions would affect them - that the plaintiff is owed a duty of care. If you are responsible for the safety of a trail and the plaintiff is invited to ride it, you owe a duty of care.

Breach of that duty: They must prove that you failed to perform a required task according to certain criteria, known as the expected Standard of Care.

Injury or loss: They must prove the incident resulted in loss or damages.

Proximate cause: They must prove that this breech of duty was the direct cause of their injury or loss.

What is Your Duty of Care?

A moving target
Different in every scenario
Based on common sense
What is reasonable and prudent?

Duty of Care: Four Tasks

Design and construct the trail appropriately
Inspect and maintain the trail appropriately
Address unreasonable hazards and post warnings
Anticipate foreseeable activities and take reasonable steps to protect users

Defenses When Negligence is Asserted

Failure to Prove - Plaintiff must prove all four elements of negligence
Inherent Risk - Risks that are an integral part of the activity
Assumption of Risk - Rider has full knowledge of the risk and chooses to encounter it
Comparative Negligence - Compares trail user's carelessness with the trail manager's
Government Immunity - Immune from ordinary lawsuits, especially discretionary functions. Still liable for negligence in some cases
Recreational Use Immunity - Laws that protect landowners from liability claims resulting from recreation
Occupier's Liability Acts (Canada) - Canadian statutes that limit duty of care owed to recreational visitors
Waivers and Participant Agreements - Written contract in which rider agrees not to sue and/or acknowledges risks

Examples of Related Lawsuits

Reese v. Oklahoma Earthbike Fellowship (Oklahoma, 2006) Case Settled: Failure to prove negligence.

Plaintiff v. Kolopore Uplands (Ontario, 2006) Case Pending

Humphrey v. State of Louisiana (Louisiana, 2006) Landowner not liable: Recreational Use Statue applies.

VanDerVelde v. United States of America (Wyoming, 1999) Landowner may be liable: Recreational Use Statue does not apply, doctrine of inherent risk does not apply.

Lesage v. Vancouver (City of) (British Columbia,1992) Landowner not liable: Rider assumed risks of riding off the marked bike path.

Schiavone v. Brinewood Rod & Gun (New York, 2001) Landowner not liable: Rider assumed the inherent risks of riding off-road, including holes on the trail.

Calise v. City of New York (New York, 1997) Landowner not liable: Exposed tree root an inherent risk.

McErlean v. Sarel et al. (Ontario, 1987) Landowner not liable: Curve in road not an unreasonable hazard.

Lloyd v. Sugarloaf Mountain (Maine, 2003) Landowner not liable: Clearly written waiver enforceable.

Umali v. Mount Snow (Vermont, 2003)Landowner may be liable: Broad liability waiver not enforceable.

Hindley v. Waterfront Properties Corp. (British Columbia, 2002) Landowner not liable: Occupier's Liability Act applies.

Hardy v. Loon Mountain (New Hampshire, 2002) Landowner not liable: Recreational Use Statue applies.


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## bsieb (Aug 23, 2003)

Good info, interesting list of cases. It is somewhat reassuring to see that the Recreational Use Statute is being applied.


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## 9GUY9 (Jul 14, 2007)

Thank you for the info. I will read through the other thread. 

This shows how well the search function works. I searched "insurance" and got 0 results.


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## Kronk (Jan 4, 2004)

9GUY9 said:


> This shows how well the search function works. I searched "insurance" and got 0 results.


Better to use google. Finds things on MTBR much easier than the embedded search function.


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## SeaHag (Jul 14, 2011)

A lot of what Mark shared about Risk Management above is covered in that "Managing Mountain Biking" book that Matt gave us Lucas. I've read through the whole thing already and believe Dan Oachs wanted it next.

Our club is already taking most of the actions necessary to protect ourselves by designing safety into the trail and having proper signage.


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## old_MTBer (Feb 16, 2014)

9GUY9 said:


> Our local club was formed about 3 years ago. In that time we have developed a managing board of 10 members representing hundreds of club members. As things stand now there is zero membership fee to be a club member. So it is tough to have a exact number of members.
> 
> We have worked with the County and City to develop two trail systems with approx 7 miles of trail. We have come to the point where we are researching club liability insurance. Our main goal is to protect the board members from liability. It is our understanding that general riding of the trails does not open us up to liability, however club trail work days, and future events may.
> 
> Would folks please share their experience in similar club manners and securing insurance to protect them selves?


Here are a few things to remember. Insurance alone does not remove liability from the club directors, volunteers, or members. Insurance will provide legal defense and will pay damages up to the occurrence limit (usually $1 million). However, that limit can be surpassed as in this case where a rider ran into a closed gate and was awarded $2.9 million. Link> Supreme Court Upholds $2.9 Million Award In Bike Injury Case - Hartford Courant

What does limit personal liability of directors, volunteers and members is to be incorporated. Here is a quote from this web site. Should Nonprofit Directors Worry About Personal Liability? | Nolo.com "The news is good for nonprofits, though with certain exceptions. Once your organization is incorporated, its directors or trustees, officers, employees, and members usually won't be on the hook personally for the nonprofit's debts or liabilities. That includes unpaid organizational debts and unsatisfied court judgments against the nonprofit."

Notice in the case examples on Mark E's post that the LANDOWNER was not held liable. Recreational statutes apply to landowners who allow recreational use of their property.

Of course incorporating and purchasing insurance takes money. Costs vary from state to state on forming a nonprofit corporation, but is usually is not much. Insurance can be expensive. Our coverage for this year on our 130 member club is $1,500.

Unless someone in your group has deep pockets, you will have to think about collecting dues from your members to offset these expenses. Donations from bike shops and other trail user groups can help too.

Since you are building on public land find out if your liability can be covered by becoming official volunteers to the land management agency.


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## tim208 (Apr 23, 2010)

just so you know, corporate veils have been being pierced in the business world. the days of incorpating and being protected are long gone.


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## leadvegas (Nov 20, 2007)

Curious who you wen t with for insurance. Just got a quote for $3400, which includes 4 races that we put on.


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## old_MTBer (Feb 16, 2014)

We have 2 independently operated but affiliated organizations. I am with the advocacy and trail maintenance organization, which is supported through dues and donations. We went with the Associated Agency after IMBA dropped their plan. Our group does not promote or operate races. The other club is a state registered team and operates some local races. The racing group does not collect dues but the team members are required to be members of the advocacy club. They get event insurance through the USAC license process.


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## 9GUY9 (Jul 14, 2007)

Sorry it took me so long to update this, but I was waiting for a finalization.

We ended up going with Pachner & Associates it came to about $570 per year for our club. That includes club activities such as group rides, and most important trail building/maintenance. One of the other recommended agencies did not cover trail maintenance. Which to us was worthless. We do not hold races, so I can't comment on that.

I feel IMBA would be doing a great service to all its clubs and members to better educate and provide insurance to clubs. It has been by far the most confusing and uninteresting aspect of our club issues to date.


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## kapusta (Jan 17, 2004)

9GUY9 said:


> Sorry it took me so long to update this, but I was waiting for a finalization.
> 
> We ended up going with Pachner & Associates it came to about $570 per year for our club. That includes club activities such as group rides, and most important trail building/maintenance. One of the other recommended agencies did not cover trail maintenance. Which to us was worthless. We do not hold races, so I can't comment on that.
> .


We too went with Pachner & Associates.


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## slocaus (Jul 21, 2005)

Did anyone else get mail bombed this week by Mike Van Abel about the insurance ending? Then mail bombed again about the mistake? I'm talking over 10 of each. Come On Man!  :skep: :nono:


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## Mark E (Feb 7, 2006)

slocus, it sounds like you may have multiple identities in the IMBA database -- not unusual for people who operate at the officer level with a club or chapter. You can probably resolve the issues by logging into imba.com/user

The old insurance e-mail was sent inadvertently when we changed e-mail support providers last week. Someone drafted it and forgot to delete the draft. When the new carrier uploaded all the old e-mail drafts this one escaped. Sorry for the trouble!


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## option157 (Oct 4, 2015)

I am looking to get a policy through Pachner for our club here in Cincinnati. Are those that have gone with them still happy with them? By chance, do you have copies of the Waiver form and Emergency Plan you had to provide them that I could use as a template?

Any help is greatly appreciated!


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## B.A.R.K. (Oct 17, 2007)

option157 said:


> I am looking to get a policy through Pachner for our club here in Cincinnati. Are those that have gone with them still happy with them? By chance, do you have copies of the Waiver form and Emergency Plan you had to provide them that I could use as a template?
> 
> Any help is greatly appreciated!


We are in the same boat. Can anyone share their forms as a template?

Thanks.


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## GraniteRash (Jun 3, 2006)

Huh? $2.9m for riding into a closed gate. The newspaper article makes it sound like it was her own fault-- going really fast and not looking ahead. Tell me there is more to this please.


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## slocaus (Jul 21, 2005)

option157 said:


> I am looking to get a policy through Pachner for our club here in Cincinnati. Are those that have gone with them still happy with them? By chance, do you have copies of the Waiver form and Emergency Plan you had to provide them that I could use as a template?
> 
> Any help is greatly appreciated!


You really need to get the waiver and such that is valid in your state, since the laws vary state to state. What we use in California is probably very different from Ohio. Surely thers is an attorney who rides MTB in you area who would offer some pro bono assistance? Maybe offer them a club membership for free in return? That is what we do here.


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## nov0798 (Nov 27, 2005)

Disregard - OLD thread


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## 9GUY9 (Jul 14, 2007)

option157 said:


> I am looking to get a policy through Pachner for our club here in Cincinnati. Are those that have gone with them still happy with them? By chance, do you have copies of the Waiver form and Emergency Plan you had to provide them that I could use as a template?
> 
> Any help is greatly appreciated!


We are on our second year with Prachner. I am satisfied with them. They have been pretty easy to deal with and answer our questions quickly. Our policy for this year was around $900, and included coverage for 2 time trials.

Our emergency plan is "Contact 911, in case of emergency"

This is our trial work waiver, we have similar waivers for group rides, and time trials. We have participants sign one of each per year and we hang on to them.

Mankato Area Mountain Bikers (MAMB) Trail Work Waiver
In consideration of my participation in the voluntary, extracurricular activity described 
below, I hereby agree to assume all risk of any kind of injury or damage I may receive or 
sustain as a result of my participation, including property damage, bodily i
njury, personal 
injury or death. Accordingly, by signing below, I hereby completely release and hold 
harmless and forever discharge 
MAMB organization
and each and every representative, 
employee, officer, volunteer, and agent of each of them, from liability
or responsibility for 
any and all claims, damages, injuries, losses or causes of action that may result from or 
arise out of my participation in the described activities. I also understand and agree that 
this release shall be binding as against my heirs a
nd assigns.
Description of Event Activities: Mountain Bike Trail Work
Date: ______________________________________________________________________________________
Location: _______________________________________________________________________________
___
_____________________________________________________________________
Participant Name (Please Print):
_____________________________________________________________________
Participant Signature
Date
___________
__________________________________________________________
Name of Parent or Legal Guardian (if under 18 years of age


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## option157 (Oct 4, 2015)

Thanks for providing that!


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