Writer's Note: In this first of two parts, we'll investigate what happens when someone gets injured at a track, and what factors into how much coverage is available.

Almost every typical race day starts the same way. You wait in line at the pit gate to dish out your pit pass money, sign a waiver, and collect your wristband. Then it's time to get down to business.

But have you ever read that form you're signing? Do you understand what it is saying? That's going to help get your bills paid if you get hurt at some point throughout the day, right?

See all 17 photos

The Waiver

It all seems so simple. Walk through the gate, sign the waiver, and you're covered on the insurance. While that may be the mindset of the racer, it isn't necessarily the truth. The waiver is more of a document saying you know that you're in a dangerous place rather than a guarantee of coverage.

See all 17 photos The waiver doesn't necessarily guarantee your coverage at the track, but it is an important tool for the promoter to validate the insurance policy.

"The release basically is a legal document that outlines that a participant knows of and understands the risks involved in racing and provides agreement that they will hold the promoter harmless and that they release a group of 'releasees' from liability," Sinclair said.

"The waiver and release form isn't necessarily about guaranteeing coverage although it is generally a part of the policy, meaning the promoter must secure signatures to validate coverage," added Sinclair. "It is the best line of defense the insurer and the promoter's attorney will have to defend against a suit."

Don't try to outsmart the system though. Signing the waiver also gives you the privilege of entering the pits and being able to participate in the day's events. There can be some serious consequences from your promoter if you try to slip through the cracks.

If You're Injured, Who Picks Up the Tab?

There can be a misconception among drivers and crew that the race track's insurance will be the first line of defense if you get injured. That's not true. The first line of defense is your personal health insurance.

Sinclair took us through what you should expect if injured. "That depends on whether the participant has health insurance and also the insurance coverage a promoter has purchased. If a participant is injured during an event, you will need to get with the promoter to determine if Participant Accident coverage is available. Most promoters today purchase what is called Excess Medical Benefit. This means that the track's coverage will be excess of any other valid health insurance the participant may have. The coverage is really there to help defray the out of pocket costs including deductibles up to the track's policy limit and subject to any deductibles within the track's coverage. There are a wide variety of limits available."

Former racer Robbie Rice who oversees Short Track Independent Drivers and Associates (or STIDA) explained just how important it is to check your personal health insurance and not take for granted that it is your first line of defense.

"By law, everyone must file their personal insurance first. In the last six or seven years when social media was getting really big and injuries were reported on all the social media sites and the news picked up on it, insurance companies figured out that a lot of racers were using their personal insurance for their injuries," Rice explained. "They did a lot of digging and found out that if they're racing for a purse, it's no longer a hobby, it's a profession. Almost every single insurance company has an exclusion for race car drivers."

See all 17 photos Jeff Van Oudenhoven was injured in this crash last season. Thankfully he was able to use his personal medical and the track's insurance to cover his bills. (Chuck Look photo)

"For a participant, [personal health insurance] will speed up any claim filed with a motorsports insurer if they also file with their personal health provider if the coverage is excess," Sinclair added. "The motorsports Participant Accident insurer will require an explanation of benefits (EOB) from the personal health insurer before they can assess any payments under the policy."

Perhaps the most critical aspect about having the track pick up the excess is the communication among the injured participant, the track, the health provider, and the insurance company. It may sound like a lot, but it can save you massive headaches and the possibility of having a bill that doesn't get covered. This was the case for Van Oudenhoven.

See all 17 photos Somehow this driver (Mark Simonsen) walked to the ambulance, but it was later discovered he had some significant injuries. Communication among the driver, track crew, insurance companies, and medical providers can help make sure everything is handled correctly.

"It has to be clearly written out what the injuries were and what happened in the crash, Van Oudenhoven said. "I had a concussion they never checked me for at the hospital. It wasn't in the report." Because of this the claim for his CT Scan was denied. However, after some phone calls and paperwork, things were settled. Van Oudenhoven had the track safety crew resubmit a letter to the insurance company explaining the extent of the injuries.

The moral of the story here is communication. It isn't always possible to get into detail when you're injured, but it's important to be as open as possible to the safety team treating you. So much as letting them know your wrist hurts could save you from an endless run around between your health insurance, the track's insurance and the medical provider. Whatever needs to be treated must be documented for the insurance.

Protecting Yourself

So if the first line and second line of defense don't cover you, then what? Thankfully, there is a third option to save you from high medical bills. This is where an organization like STIDA comes into play.

"It was basically formed to protect me and the more we read into the policy we were allowed to add other drivers to also cover them," Rice explained. "So if we wanted to make it cheaper we could split it. It went from four of us in '98 to, I think, 13 in '99, and it just grew from there."

Rice said initially it was a group rate that was split among drivers, but it is now a straight rate. Much like what the tracks experience, the extra insurance from STIDA is based off claims and losses. For the most part the rates have stayed the same over the past ten years. The organization covers drivers across the county. They even have some international members from Canada and Australia who pick up the extra coverage when they come to race in the United States.

"It's just peace of mind. If you're a family man and you're doing this for a hobby, do you really want to go to a race track, break your back and find out you only have $15,000 worth of coverage because your personal insurance has denied it and the race track only had $15,000," Rice said. "You have $100,000 in bills and rehab in front of you with no help. No one wants to talk about getting hurt in race cars because they all want to be invincible. But the reality is that racing is dangerous. If you race long enough, you're probably going to get hurt in some fashion. We just try to offer this for the local racer to have peace of mind, so if something bad does happen, they won't have to worry about losing their house."

See all 17 photos Thankfully there were no injuries here. Drivers can protect themselves from excess medical bills with supplemental insurance and companies like STIDA.

Many drivers have raved about the benefits of STIDA. Dave Ely from DMI/Bulldog Rear Ends spoke highly of STIDA and its helpful nature when Circle Track paid him a visit this past summer. Another huge proponent is Jack Hewitt.

"He was a STIDA member in 1999, the second year we were involved, until he quit racing," Rice said. "When he got hurt the last time, we paid a lot of his medical bills. He tells everyone he knows every chance he gets. He's so big in the open wheel world in the Midwest. When he talks, a lot of people listen."

As for the levels of coverage offered by STIDA, there are three.

Green membership is $100,000 ($85,000 plus a $15,000 deductible) in excess medical coverage. Cost per member is $299

White membership is $250,000 ($235,000 plus a $15,000 deductible) in excess medical coverage. Cost per member is $399

Checkered membership is $500,000 ($485,000 plus a $15,000 deductible) in excess medical coverage. Cost per member is $499

"For the longest time we just did the $250,000 membership. About 4-5 years ago we had a lot of people asking if we could go lower on the prices, and we had some race car drivers asking if they could have more coverage," Rice explained. "We sat down and decided that offering different tiers would help us grow and help the drivers get what they need. If you don't need $500,000 in insurance, you can get the $100,000 policy. If you drive Sprint Cars or Drag Racers, which is a lot more dangerous than running a Street Stock, you can bump up your membership tier and get a half-million."

Rice will admit that insurance isn't the most enticing racing product to sell. However, he has teamed up with several safety companies offering discounts to STIDA members on their products. "Obviously the main draw to STIDA is the extra insurance that you get. The biggest thing we've been working on in the last few years is getting safety companies to give discounts to our members. We've been very lucky to get the top guys in the safety world to recognize what we're doing and offer a significant discount if you buy their safety products."

The companies involved include: Butlerbuilt Seats, Hinchman Racewear, Impact, Bell Helmets, Hooker Harnesses, and Safety Solutions.

Disability Insurance

If you do get injured, the medical bills may not be all you need to worry about. Van Oudenhoven was out of work for 10 weeks. He did receive disability insurance through his employer, but had to work through some of the savings in his bank account, as well.

Those who participate at the track should be mindful of disability insurance, as well as supplemental policies.

"Disability insurance is available more easily for professional and semi-professional racers—those that generate all or significant portion of their income from racing. Finding coverage that does not exclude racing for amateur racers may be more difficult," Sinclair said.

Once again STIDA can come to the aid of racers and offer help with their policy. "You'll get $100 a week for 13 weeks. It's not a lot, but it will help pay grocery bills until you get back on your feet and get back to work," Rice said.

The Track's Policy (Injury)

When it does come to working with the track's insurance, it's important to note that every track's policy is different and there are several areas for your promoter to consider when building a policy. In a later article, we'll discuss some of the other things tracks and racers can do to protect their investments.

Here are the main points pertaining to injury according to Sinclair:

General Liability - The main exposure for a promoter is bodily injury or property damage to other people's stuff. This is covered by a liability policy.

Motorsports Liability Policy A motorsports liability policy will remove the normal exclusions for autos and for racing and stunting activities. It will provide coverage for bodily injury to participants—often called Participant Legal Liability or PLL.



So what does this mean for you? Quite simply, you should have knowledge of what your track is carrying, and how much it is carrying. You should also know that just because you aren't a "participant" doesn't mean that there isn't some coverage for you. Even the fans in the stands are covered under most tracks' liability policies.

See all 17 photos Different tracks will carry different insurance policies. Some tracks (such as Evergreen Speedway in Washington) carry NASCAR sanctioning, which brings on different coverage. It is important to know what your track offers.

In the event of an injury or fatality, how much liability falls on the track? Each case is different, Sinclair explains.

"All cases are investigated to determine liability. The rules of liability also vary from state-to-state and the legal climates are different from place-to-place even within a state. A pure racing incident may not generate any liability against the track, but it may still generate a large amount of legal fees to defend a lawsuit if one is filed."

Why Do Different Tracks Have Different Policies?

See all 17 photos Different types of tracks can see different rates. The track's rate is based off claims and loss. If a track has a good history of being safe, the insurance rates will be lower.

There are a few different aspects that play into why tracks have different policies. The main aspect is that no two tracks are alike. Therefore a track may differ in how much coverage it has on its facility or it may differ on how much coverage is available for an injury. Again, it is important to do some investigating.

Each track is taken on a case-by-case basis. Most promoters will determine how much insurance they need and weigh that versus the rate. The rate is where the variances can come into play for your track.

"Rates really are based on losses. Tracks with better loss history will generally have lower rates," Sinclair explained. "Of course, there are a variety of factors that may affect rates like track length, dirt vs. paved, type of classes run, physical factors like type and height of barrier walls and debris fencing and placement of barriers and fencing to provide maximum protection to all people and property in and around a facility. When a track runs Sprint Cars for example, we would want to know about the areas directly adjacent to the track since they have been known to occasionally get out of the park."

See all 17 photos Some forms of racing may be considered by an insurance company to be of greater risk than others.

So are some race tracks safer than others, according to the insurance industry? Sinclair says that is indeed the case. "There are probably preferred situations: paved versus dirt due to the debris factor; quarter-mile versus five-eighths-mile due to the speed factor; pit outside versus infield; track exit/pit entrance configuration that do not allow direct access into pit parking are examples."

Keeping that in mind, there are some things the track can control, but there still are things well out of their control. Any loss will boost rates and not only increase the risk profile for the track itself, but for the industry as a whole. Sinclair said one of the biggest things tracks can do to improve their risk profile is establish rules to help reduce the number of claims. However, it takes a team effort across the industry.

"The total claims for the entire industry establish the overall rate required that get split among all tracks and promoters, so the greatest impact is when the entire industry moves in the same direction when it comes to safety rules and regulation. One track or one promoter can't do it by themselves."

Sources:

Bell Helmets

(800) 216-9446

www.bellhelmets.com

ButlerBuilt Seats

(800) 621-7328

www.butlerbuilt.net

Hinchman Racewear

(317) 634-6268

www.hinchmanracewear.com

Hooker Harness

(815) 233-5478

www.hookerharness.com

Safety Solutions

(800)731-4404