Audi Club North America Frequently Asked Questions About Club Insurance

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1 This set of frequently asked questions (FAQ) will help address questions about Audi Club North America (ACNA) insurance coverage and processes. These questions were developed by a team of volunteers from across North America based on their experience planning and hosting events; questions received from event participants, chapter members, and facility owners; and questions we have individually explored with our professional contacts. As such, this is not intended to convey a complete picture of ACNA insurance coverage or contents of policies, but to facilitate a general understanding of what is covered and to what extent. This FAQ should not be considered a substitute for chapter leaders and event organizers consulting with ACNA about insurance-related questions. Full details about the content of ACNA insurance policies is available at Audi Club of North America, W359N5920 Brown Street, Ste. 103, Oconomowoc, WI Phone: Fax: admin@audiclubna.org. The intended audience for this document is the ACNA Board of Directors, ACNA Chapter Leaders, and ACNA Chapter event organizers. It is organized in four parts: 1) Insurance related to general ACNA Board activities including the ACNA Board and Chapter Boards; 2) Event Planning, 3) Event Management, and 4) Event Wrap-Up. There are several other resources available; these are highlighted in the body of the text below through links. Some of the questions below relate to ACNA policy. Others involve process. Still others require management judgment. Q ACNA BOARD ACTIVITIES Questions 1-3 (Directors and Officers Insurance D&O) A 1. What protects members of Chapter Boards of Directors from personal liability when directing chapter operations? 2. Does ACNA coverage protect board members from liability associated with their fiduciary duty to preserve club/corporate assets? 1. ACNA provides Director and Officer (D&O) insurance, which is intended to protect ACNA and its affiliated clubs and chapters and their Directors, Trustees, Officers, Volunteers, Employees and Committee Members from claims for alleged wrongful acts in their club capacity and the costs to defend against these claims. The liability limit per event (claim) is $1,000,000. Claims do not have to be a "legal proceeding" to be covered. 2. Yes: Please see FAQ #1 above. 1 3/28/2013

2 3. Are the liability coverage limits established by our policies in line with the limits in our peer organizations? 3. Your ACNA Board of Directors believes the limits are in line with those in place at our peer organizations. We consider our peer organizations to be the other European marque luxury and performance automobile owner clubs that conduct similar activities for their members. The ACNA insurance policies are reviewed annually to evaluate the coverage provided while considering the risks associated with our club activities. Q EVENT PLANNING Questions 4-17 Note that only ACNA directors, members, and volunteers are authorized to plan and operate ACNA-sanctioned events. A 4. What kinds of insurance cover ACNA events? 5. What kinds of events require insurance? 4. ACNA has three different types of policy that pertain to club events. a. Director and Officers insurance (See also FAQ # 1) b. Liability insurance covers event organizers, volunteers, and others from personal liability and ACNA from liability in case something goes wrong at an ACNA-sanctioned event. c. Participant Accident insurance covers potential medical claims that would arise where event participants or guests were injured at an ACNA-sanctioned event. See also FAQ # ACNA carries liability insurance for all activities and events that are associated with Audi Club of North America, its Chapters, and Members. In general, ACNA sanctions various social, charity, and driving events. To qualify for ACNA insurance coverage, events that have a wheels in motion component require application for a Certificate of Insurance from ACNA. The process for submitting an application involves: 1) contacting ACNA, 2) discussing the event with ACNA representatives, and 3) completing a form. If you have any 2 3/28/2013

3 questions about this, please call the National Office. ACNA and its Chapters organize several forms of events: a. Social events (no driving, small numbers of people, minimal organization) no request for certificate of insurance is required. (Note) b. Technical Sessions (no driving, e.g. held at a dealership) no request or certificate of insurance is required. (Note) c. Car shows and Corrals for the pleasure of individual owners and ACNA members no request or certificate of insurance is required. (Note) d. New product/professional car shows no request or certificate of insurance is required. (Note) e. Driving events called wheels in motion organizers are required to apply for and obtain a certificate of insurance (see ACNA Policy at: roved_ pdf.) i. Fun runs, Tours ii. Teen driving clinics iii. Basic car control and handling clinics iv. Driver education (at track or other facility) v. Autocross, Gymkhana, Ice driving events vi. Rally, TSD Rallies vii. Driver education schools viii. Lapping days f. Meetings (ACNA or Chapter board, Committees, etc.) no request or certificate of insurance is required. (Note) (Note) Where individual members and owners meet up to drive together to an event that does not otherwise involve wheels in motion ACNA strongly recommends that all drivers sign a waiver even though no Certificate of Insurance is required. 6. How do I as the organizer assure that my event is covered? 6. Two conditions must be met: a. Discuss your event with the ACNA National Office. Complete the Request 3 3/28/2013

4 for Certificate and submit it to ACNA per instructions at: b. At the event, make certain that Members, Participants, Staff, Instructors, Volunteers, Guests, and Visitors (everyone) sign the current Release and Waiver forms. Assure that the Release and Waiver forms disclose the event name, date(s), and location prior to signing. Please use a fresh waiver form for each event do not recycle the forms. 7. May I purchase other event insurance instead, such as an additional policy to cover high cost areas of North America? May I purchase additional insurance in situations where the liability limits may be viewed as too low to adequately attract event venues and volunteers? 8. What is the cost for the Club insurance? 7. ACNA provides liability and participant accident coverage as a basic underpinning for the activities of the organization as a major and fundamental value-add from ACNA to the Chapters. The policies are reviewed annually to ensure that coverage is adequate in all geographic locations in North America. a. Alternative coverage to replace ACNA-provided insurance may not be acquired for ACNA sanctioned events. b. Club Additional coverage to enhance the ACNA-provided insurance may be acquired. ACNA recommends contacting Wells Fargo through the ACNA National Office to establish contacts for requested supplemental liability coverage. See also FAQ #8. c. Individual Additional coverage is available through an ACNA relationship with Lockton Affinity where participants can get a declared-value policy on their street or track car at reasonable rates at their own expense. See 8. The insurance policy costs are determined annually and paid by ACNA. ACNA charges back to chapters organizing events that require certificates of insurance a pro-rata share of the applicable annual costs. These fees for event liability and participant accident insurance coverage are also determined annually and authorized by the ACNA Board of Directors. The charge-back fee structure is published to the Chapters when the ACNA Board approves the policies, typically in 4 3/28/2013

5 March of each year. There is no cost to Chapters for the Club D&O insurance (there is no charge-back). This is considered a fundamental value-added feature of membership within the organization. If a chapter elects to acquire additional insurance for a specific event, ACNA recommends that the chapter coordinate with ACNA to contact Wells Fargo. Alternative coverage for events should not be requested. The additional coverage will be at the chapter s expense. See also FAQ #7b. See also FAQ # If my ACNA event is to be co-hosted with another car club, how do we jointly assure insurance coverage? 10. Does the event coverage amount and limit fluctuate depending on geographic location of the event? If my event will be held in an area having high property and medical costs, the insurance limits could be reached quickly in the case of a claim. How are claim amounts over the limits covered? 9. First, the event must be consistent with the types of events authorized by ACNA. See also FAQ #5. See also FAQ #16. Ordinarily, one club must supply the coverage, and the coverage must meet minimum ACNA requirements. Please contact the ACNA National Office for details. 10. Coverage and limits apply to all locations in North America. Note that claims tend to settle within policy limits if such limits are reasonably adequate such as ACNAs. Ultimate settlement depends upon liability and actual damages more than geographic location. 11. Is there insurance coverage for medical expenses related to injuries to volunteers and guests at ACNA events? 11. Participant Accident coverage includes: a. $15,000 Excess Medical that supplements the participant s own Health Insurance (or acts as primary coverage if they have none) 5 3/28/2013

6 b. $10,000 Accidental Death c. $10,000 Accidental Dismemberment (by schedule) d. $100/week loss of income (up to 52 weeks) 12. Is there insurance coverage for property damage? 12. Damage to rented premises (property) is covered up to $300,000 per occurrence. Coverage for physical damage to participants vehicles is not provided by ACNA; this is the responsibility of the participant s primary vehicle insurer. See also FAQ #7c. 13. Is there insurance coverage for environmental damage? 13. There is coverage for sudden and accidental pollution damage such as fuel spills. 14. What are the limits of event liability coverage? 14. Commercial General Liability coverage and Personal & Advertising Injury Liability coverage applies through granting of additional insured status to ACNA, its affiliated clubs and chapters and their members, event officials, instructors, drivers, crews, and other event participants (defined as anyone who has signed the required release and waiver form), as well as event site landowners, managers, lessors and participant vehicle owners and sponsors, and event sponsors from bodily injury, property damage, personal injury or advertising claims arising out of a covered incident at an ACNA event or activity. $5,000,000 per EVENT DAY - Bodily Injury Liability (including Spectator Liability), Property Damage Liability, Participant Legal Liability, Contractual Liability, Products Liability, Personal and Advertising Injury Liability, Host Liquor Liability, Mobile Equipment Liability, Medical Professional Liability (Excess). 6 3/28/2013

7 $100,000 per EVENT DAY - Event Officials Errors and Omissions Coverage regarding rules enforcement at Events. 15. Do the limits shown on the Certificate include legal costs, or are legal costs in addition to those amounts? 16. Are any specific activities excluded from the General Liability policy? 17. Can I give the insurance policy to property owners at the event site when requested? How do I get a copy? 15. Legal costs and expenses are outside, in addition to, the policy limits, and those legal costs and expenses are covered by the ACNA policies. 16. Certain types of events are excluded and should not be considered by ACNA event organizers. These include: Concerts, drifting events, amusement rides and devices including rock climbing walls, cage activities, thrill shows including motorcycle stunts, and events where no effective system is in effect to collect Release and Waiver forms or where members of the general public are permitted to enter restricted areas without signing Release and Waiver forms. Consult with the ACNA National Office if you have any questions or concerns about whether a particular activity is covered. 17. ACNA s insurance policies are proprietary. Summaries of insurance coverage are listed in this document: 122/chapter-resources/track-insurance-policy. Under certain circumstances, summaries may be given to property owners by ACNA. Nondisclosure agreements may be required under these circumstances. The property owner may contact ACNA National Office at (262) (phone), (262) (fax), or admin@audiclubna.org for further information. See also FAQ #14. Q EVENT MANAGEMENT Questions A 7 3/28/2013

8 18. What coverage assurances can I give instructors, volunteers, and participants? 19. Should I / can I advertise this information? 18. Summaries of insurance coverage are posted at: These summaries may be given to your participants if they ask about coverage. 19. Insurance information is almost always provided in response to questions, and that is the recommendation. The Summaries and other information are posted on the ACNA website for your use with questions. It is important that everyone be given ample opportunity to examine the Release and Waiver of Liability Assumption of Risk and Indemnity Agreement ( Release and Waiver ) before they sign it. Some chapters are posting the Waiver on their websites and then referencing to it with a link in their communications to participants. This gives everyone an opportunity to examine the document they will be signing prior to the high stress environment of the registration line at the event. See also FAQ # Am I personally liable if something goes wrong at the event? What about instructors and volunteers? 21. Should we restrict the release of video, still imagery, and audio bites taken at an ACNAsanctioned event (especially if an incident occurs)? 22. What is the covered start date and time for the event? 20. If an organizer, instructor, or volunteer were to be accused of personal liability, then that person would be covered as an additional insured under the ACNA liability policy. See also FAQ # ACNA recommends that guidance should be given to participants, volunteers, and instructors consistent with direction in the Drivers School Guidelines at The event starts when participants report for registration (sometimes the day before or hours before the actual driving begins.) The correct start date and time 8 3/28/2013

9 should be specified on the insurance certificate. See also FAQ #5. Where individual drivers choose to drive to an event together, and this wheels in motion component is not included in the insurance certificate, ACNA recommends that the drivers sign release and waiver forms anyway. See also FAQ #5 - Note. 23. What do the organizers and volunteers need to know about the release and waiver forms? 23. Organizers need to know that everyone involved at the event, including the organizers, volunteers, instructors, guests, and participants must sign the ACNAprovided Release and Waiver forms prior to the event start. This requirement may include corner workers and concession workers depending on the type of event and facility. This requirement credentials the participants and workers for ACNA insurance coverage. Please note that the parents or legal guardians of minors at wheels in motion events must each sign a Minor Release and Waiver of Liability and Indemnity Agreement for each minor participant at the event. Organizers should assure that the event name, location and event date(s) are written at the top of the form before people read and sign the form. Nothing on the form may be crossed-out. This is to make sure that everyone is signing for the specific event described on the form. To assure that Release and Waiver forms are valid in case of a dispute, be sure that those signing have the opportunity to examine and understand what they are signing. See also FAQ #19. The Release and Waiver is intended to 1) inform all involved about the event risks, 2) obtain agreement that the risks are understood and accepted by the signor, and 3) document who participated in the event. The waiver language is consistent at all ACNA events nationwide. The only release and waiver forms authorized are those 9 3/28/2013

10 provided by ACNA. Note that at track facilities, driving school facilities owned by others, the facility owner s insurance may cover the facility employees. 24. What should I tell participants at wheels in motion events that they can and cannot do such that the insurance always applies? 24. First, everyone MUST follow laws and regulations, including posted speed limits. Everyone MUST follow ACNA rules for the type of event and the specific event. Second, instructors should not instruct participants to operate their vehicle outside its normal operating parameters during the event without fully discussing and disclosing the intended lesson (do not turn off stability controls, execute hand brakes, take over steering the car, etc.). ACNA prohibits timing of participant circuits in ACNA high speed driving events, including timing with the vehicle s nav unit. Sanctioned autocross or gymkhana events may involve timing and that in newer car models, the nav unit can be used to perform timing please be sure that the student/participant understands ACNA s restrictions and how not to use or learn from this aspect of the car during events. Third, pre-event technical inspection (tech inspection) by a qualified entity (e.g., dealer, authorized service center, mechanic) may be required. Event participants are solely responsible for the safe condition of the vehicle to be driven to, at, and from the event. Non-stock safety equipment should undergo a tech inspection. ACNA does not require an on-site follow-up inspection, but recommends this as conditions can easily change between the pre-event inspection and the event itself. Chapters may add additional requirements. Sample tech forms can be obtained at the National Office. Completed forms are to be collected prior to any driving event activity or driver participation. 10 3/28/2013

11 25. If something goes wrong, what do I do? 26. What do I do if my event is cancelled? 25. Follow the event s emergency response plan. Tend to the safety and personal needs of all participants involved.. Follow the ACNA Emergency Contact Information process in the 2013 ACNA Driving School Guidelines ( to inform those who need to be involved. The Guidelines should be available in hard copy at every wheels-in-motion event. Contact the ACNA National Office at (262) (phone), (262) (fax), or admin@audiclubna.org for further information, including how to report the incident. 26. In the unfortunate event of a cancellation, the event organizer should immediately contact: a. ACNA to discuss requirements for process and communication protocols. b. Participants who have registered to reschedule and arrange for fee refunds if necessary. c. Sponsors to reschedule and arrange for sponsorship refunds if necessary. d. Facility owners to reschedule and to renegotiate or settle contract commitments if necessary. Q EVENT WRAP-UP Questions A 27. Do I need to notify ACNA that the event is over to stop insurance coverage? 27. The request for a certificate of insurance requires that the organizer identify the 11 3/28/2013

12 end date of coverage. No other notification is needed. See also FAQ # When the event is over, what records does the Chapter need to retain. How long must they be retained? 28. Record retention for chapter activities is the responsibility of each individual chapter. ACNA only requires that federal (e.g., IRS) and state requirements must be met for chapter business. Each chapter will supply reasonably secure space for chapter records. For ACNA sanctioned events over and above chapter business, the following guidelines are offered: Release and Waiver forms should be retained for at least four years. The signed technical inspection sheets should be retained for at least three years. Financial records (registrations, expenditures, budgets) should be retained for at least three years. ACNA will retain insurance certificates and documents related to claims in the central office. Original Release and Waiver forms must be kept for four years. You may mail them to ACNA for record keeping. References: 1) Insurance Information and Summaries: ACNA General Liability Insurance Summary ACNA Participant Accident Insurance Summary ACNA D&O Insurance Summary 2) ACNA Event Management Policy 3) ACNA Event Forms: Insurance Request Form ACNA Contribution Support Form Waivers for Minors /28/2013

13 Adult Insurance Waivers 4) ACNA Safety School Driving Manual /28/2013