STEVE---
I think most clubs come around to this issue, once they start displaying and
operating a layout at public shows. Our club----the Bristol S-Gaugers----
operated for years without insurance, but we were forced into it when we
began sponsoring our own public show. The school facility that we used
required us to carry a $1 million policy. We ended up purcasing a policy
which covered us at up to four public locations (shows) per year. We have
since changed to a different policy which places no limit on how many times
we display and operate. I THINK our cost for this policy is around $1000 per
year.
I found Don's response very interesting, becauase we have had "discussions"
(read that, "squabbles") at club meetings, even within the past year, about
the need for us to maintain this policy now that we no longer sponsor our
own show. Not to everyone's satisfaction, but we ultimately voted to
maintain it, just because of the "far-fetched" examples which Steve notes.
Arguments were made at our meetings that because the club is incorporated,
members won't get sued....only the club (which has few assets). Others
argued (supported by a legal opinion) that incorporation does not prevent
lawsuits to members. It may protect the members from ultimately being held
financially liable, BUT all can still get sued, and it will cost you $$$$ to
defend yourself in court. With a proper liability policy for the club, the
insurance company will cover the cost of that defense....not the
individuals! That's an important consideration.
In my mind, and most of our membership agreed, it is a well-spent $1000 per
year.
The issue of incorporation is a related one. We hired a lawyer to do all our
paperwork related to club incorporation. I don't recall the cost, but it
wasn't huge, and it was a one-time cost.
Good luck with your own deliberations!
Doug Peck
Port Lines Hobby Supply
6 Storeybrooke Drive
Newburyport, MA 01950-3408
Shop Hours - Tuesdays, Wednesdays, Thursdays: 2-5 PM (EST), and 7-9 PM.
Saturdays: 2-5 PM.
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<<< Date: Sat, 11 Jan 2003 13:22:02 -0500
From: Steve Blancard <[EMAIL PROTECTED]>
Subject: Club insurance ?
Guys,
My club, the Washington & Old Dominion division of the Atlantic Coast S
Gaugers has recently been discussing the need for club liability
insurance. This would be to protect us against lawsuits in case someone
were to be injured by our modular layout set up at a show. For example,
if while demonstrating the rocket launcher car, a kid gets hit in the
eye by the rocket. Or if while kids were to be shocked by a shorted
operating button, or if a kid were to fall off a step the club built to
facilitate viewing. These examples may seem far-fetched, but in this
lawsuite crazy society, it is unfortunately a valid concern.
Our club has been discussing whether we should incorporate as a
non-profit club in order to obtain liability insurance. None of us
wants to loose everything because of a minor accident and an aggressive
lawyer.
I would appreciate hearing how other clubs handle this issue.
Steve Blancard
******************************************************************
From: Don Thompson <[EMAIL PROTECTED]>
Subject: Re: Club insurance ?
Dear Steve,
Once this subject is brought up., it is best to disband the club.
Now that you are all aware of the legal liabilities to each individual
who is associated with your club you will have to purchase liability
insurance. When you discover how much this will cost (if you find a
company willing to write a policy) to protect each and every member from
possible law suits, and then try to collect the premiums from your
members you will realize what a huge problem you now have on your hands.
We lost a member several years (or was it a decade ago) over this very
subject. He had an article about a mid west modular club that was sued
by a train show spectator that somehow was injured during the show.
Actually, the club did not get sued, but each member did. I am not
sure of the outcome, but we ended up losing a member. I hope I may be
wrong about the insurance, and let me know if you foresee a different
outcome.
Don
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