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Monday, March 17, 2014

Are you - we insured for the sport??? DIESEL Motorsports

Had a call over the weekend from a longtime diesel competitor who found himself in a unpleasant situation with his insurance company.

He had a legitimate vandalism claim regarding his truck which is a daily user, they investigated and found where he used it on the weekend to compete at diesel events.

In order to keep from paying the claim they countered with a fraud charge because their policy named the policy holder as not using their vehicle for competition. By signing the original policy they agreed they did not use their vehicle in competition, thus the fraud charge.

Now not only are you out of the vandalism claim on your truck but now you are out attorney fees and possible fines.

As claims get more abundant for insurance companies and profits tighter for them the insurance companies are finding ways to get out of paying a lot of claims. To us it's no different than using your truck for offroading or hill climbing but since it is a paying competition the insurance companies consider it motor sports.

CHECK your policy carefully before you sign the bottom line. You could get caught in the same trap if you ever have to place a claim. Regardless if the claim is legitimate be it a wreck, vandalism, etc, the insurance company can deny any claim based on their policies statement.

A few years back DIESEL Motorsports offered through a company associated with us cheaper business liability insurance, it amazed us how many diesel shops had the wrong kind of insurance for their business. Yes, theirs was cheaper but one was designated as a gas station with no flammable products in the building, yet they rebuilt engines and had fuel and oils in the building. If the building ever had a claim the insurance company could deny any claim no matter how legitimate it was because they had fraudulently labeled their business.

As a sanctioning body we insure for all possible claims at an event, in fact we carry the same insurance as a NHRA or IHRA large event. We have too, the facility requires us to carry the proper insurance in order to rent the facility. We don't use track insurance because it only covers the track's claims leaving the sponsors possibly open for liability. We cover all aspects of liability including our sponsors, fans and competitors.

Now what this doesn't cover is the insurance for the competitors personal vehicles at the track or off of the track. Even if you trailer your competition vehicle to the track is your truck trailering covered? Better check your policy - they are getting REAL picky on what they cover!

Make sure to ask will my truck be covered since I use it for recreational competition at diesel events? In order to get the business normal companies will write an add-on policy to include the activity. Then you are covered but at least you told them up front and have it in writing.

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