Liability Insurance for Motorsport: Don’t cut corners – protect you and your business

Why motorsport businesses might need liability insurance

This short article focuses on the essentials of why you might need Public, Product, and Employers’ Liability insurance as part of your motorsports business insurance.

Protect Your Motorsport Business: Avoid Costly Claims

Public and Product Liability (PL) Insurance

When you take out PL insurance, it protects your motorsport business from financial losses if someone (other than an employee) gets hurt or their property gets damaged due to negligence or actions your business may be responsible for.

While not compulsory, many venues and tracks require PL insurance, so it’s a major consideration for motorsport teams and businesses, and we would recommend this cover.

Examples of PL claims include:

• A guest tripping over a cable in your hospitality tent, causing them injury. 
• An accident with a vehicle your business serviced that was found to have improperly fitted brakes.

There are many other scenarios in which PL insurance can respond, hence the reason why this cover is important.

Employers’ Liability (EL) insurance

EL insurance differs from public and product liability insurance. While both protect businesses from financial losses, EL specifically compensates employees injured or made ill due to employer negligence. It’s a legal requirement in the UK for employers, including those with part-time, temporary, or unpaid workers. Exceptions are rare, such as employing a close family member in a low-risk role.

Examples:

• A part-time employee becomes ill from toxin exposure at your workshop.
• A weekend volunteer is injured operating machinery without proper training.

Why Liability Insurance is important:

• It protects your business and its owners from financial losses
• Not having EL may be unlawful and can lead to hefty fines
• A claimant has up to six years to submit a claim for personal injury or damages

Effective communication is key

Insurance companies rely on accurate information. Discussing your specific motorsport business activities with your broker is essential to obtain the right policy and agree the levels of indemnity required.

Insufficient insurance cover can be costly to both your finances and reputation.

Contact Reis Today!

At Reis Motorsport Insurance, we pride ourselves on being knowledgeable, understanding the motorsport industry and the products we arrange, reflecting the inherent risks and associated activities that go with it.

Don’t compromise on your insurance needs. If you’re involved in motorsport and require liability cover for your business contact Reis Motorsport Insurance. We speak your language!

Call us on 0115 965 1050 to discuss liability insurances for your motorsport business