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Protect Your Racing Operation with Motorsports Racetrack Insurance

Introduction Are you in the motorsports industry? If so, you understand the unique risks and challenges that come with managing a racetrack. From thrilling races to lively crowds, it's important to ensure the safety of...


Are you in the motorsports industry? If so, you understand the unique risks and challenges that come with managing a racetrack. From thrilling races to lively crowds, it's important to ensure the safety of both participants and spectators. That's why investing in motorsports racetrack insurance is essential. In this article, we will explore the different types of coverage available and why it is crucial for your business.

What is Motorsports Racetrack Insurance?

Motorsports racetrack insurance is specifically designed to protect race tracks that host various motorsports events, including auto racing, drag racing, kart racing, and motorcycle racing. These venues provide the perfect stage for exciting competitions, whether it's for amateur or professional races. As a racetrack owner or operator, you face unique risks and liabilities that require specialized insurance coverage.

Motorsports Racetrack Insurance Motorsports Racetrack Insurance Policy Information

Why Do Motorsports Racetracks Need Insurance?

Motorsports racetracks are high-risk environments with inherent dangers associated with the industry. While modern safety measures have significantly reduced the risks, accidents and incidents can still occur. It is crucial for racetrack owners to have insurance coverage to protect against financial losses in the event of accidents, injuries, property damage, or legal liabilities.

What Types of Insurance Do Motorsports Racetracks Need?

There are several types of insurance coverage that motorsports racetracks should consider:

General Liability Insurance

General liability insurance is a fundamental coverage that protects your racetrack against third-party bodily injury or property damage claims. It provides financial protection in case someone is injured on your premises or if property damage occurs during an event.

Property Insurance

Property insurance covers damage to your racetrack's buildings, structures, and contents, such as seating areas, concession stands, and equipment. It protects against risks like fire, theft, vandalism, and natural disasters.

Workers' Compensation Insurance

Workers' compensation insurance is a legal requirement that provides coverage for employee injuries and illnesses that occur while on the job. Racetracks have unique risks that can result in accidents or illnesses, and this insurance ensures that your employees are taken care of.

Event Cancellation Insurance

Event cancellation insurance safeguards your racetrack's financial investment in the event of unforeseen circumstances that force the cancellation, postponement, or curtailment of an event. It covers expenses and lost revenue associated with event cancellation, such as ticket refunds or venue rental fees.

Liquor Liability Insurance

If your racetrack serves alcohol, liquor liability insurance is crucial. It protects against claims of alcohol-related incidents or accidents caused by intoxicated patrons. This coverage is especially important to prevent potential lawsuits and financial losses.

Motorsports Racetrack's Risks & Exposures

Premises Liability Exposure

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As a racetrack owner, you face a high premises liability exposure due to the large number of visitors and the strong emotions that can arise during races. It is essential to ensure guest safety by meeting all public and life safety codes. Effective barriers should be in place to restrict spectator access to the vehicles and prevent accidents.

Good housekeeping practices, adequate lighting, marked exits, and well-maintained parking areas are critical to prevent slips, trips, and falls. Security personnel should be present to handle emergencies, prevent unauthorized entry, and protect against theft and vandalism.

Products Liability Exposure

If your racetrack operates restaurants, snack bars, or gift shops, you have products liability exposure. Proper training for employees handling food and consumables is crucial to prevent food poisoning or foreign objects in food. Additionally, if gift shops are contracted out, it is important to ensure that the operators have adequate liability coverage.

Environmental Impairment Liability Exposure

Racetracks have high environmental impairment liability exposure due to the potential for contamination of air, water, or soil from spillage or leakage of fuel, lubricants, or other hazardous substances. Compliance with federal and state regulations for storage, disposal, and cleanup is essential to protect the environment and prevent costly litigation.

Workers' Compensation Exposure

High workers' compensation exposure exists in the motorsports industry. Employees may be at risk of being struck by vehicles, injured by racing debris, or exposed to noise levels that can result in hearing impairment. Other potential hazards include burns, cuts, scrapes, and falls associated with food operations, cleaning, general maintenance, and stage setup.

Property Exposure

Arts And Recreation Insurance Arts And Recreation Insurance

Racetracks have significant property exposures due to the presence of fuels, lubricants, and other flammable substances used in pits and garages. Proper storage, handling, and maintenance are necessary to prevent fires and explosions. Adequate extinguishing equipment should be easily accessible throughout the facility.

Other property risks include electrical systems for lighting and electronic equipment, cooking equipment in restaurants, and waste disposal. Loss prevention measures, such as regular maintenance and proper control of smoking areas, are essential to reduce the risk of fires or other property damage.

Crime Exposure

Crime exposure includes potential employee dishonesty and theft of money or securities. Background checks should be conducted on all employees and volunteers. Regular inventories and audits are necessary to monitor and detect any discrepancies. Cash should be regularly stripped from cashiers' drawers to prevent a buildup of cash, and all money should be double-counted and stored securely.

Inland Marine Exposure

Inland marine exposure arises from accounts receivable, audio-visual equipment, computers, and valuable papers and records. Duplicates of critical data should be stored off-premises for easy restoration. If the racetrack is responsible for drivers' gear, equipment, or property of visiting entertainers, bailees customers coverage may be needed.

Commercial Auto Exposure

The commercial auto exposure for racetracks is generally limited to hired non-owned vehicles for employees running errands. However, if your racetrack provides transportation for drivers, crews, or guests, the exposure increases. Regular vehicle maintenance and driver background checks are necessary to reduce the risk of accidents.


Owning or operating a motorsports racetrack can be an exciting venture, but it comes with unique risks and liabilities. Motorsports racetrack insurance provides the necessary coverage to protect your racing operation, employees, and spectators from financial losses and legal liabilities.

To determine the right coverage options and cost for your specific needs, we recommend speaking with a reputable commercial insurance agent. They can guide you through the process of selecting the appropriate policies to safeguard your racetrack and ensure peace of mind.

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