Race Owners and Sponsors Liability Coverage
                     Race Owners and 
Sponsors Liability 
Coverage
Auto racing sponsorships are a great way to market 
your business, but are you covered for the risks?
Auto racing and motorsport events are 
exciting and a great way to connect with 
customers. In fact, it’s estimated that 
almost half of fans are willing to switch 
brands to buy race-sponsored products. And 
that could mean big revenue for your 
business.
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You’ve thought about the opportunities, but have you 
considered the risks? Any time you get lots of people and lots of 
cars, heavy equipment, and alcohol in one place, things can go 
wrong—fast.
Risky Business
Accidents happen—both on and off the track. So, whether you 
plan on investing in a race team, venue sponsorship, or other 
event, or are looking to make a trade arrangement in exchange 
for publicity, you need to make sure you take steps to protect 
your business.
In the event of bodily injury or property damage at a racing 
event, you and your business could be named in a suit even if 
you are only a sponsor and even if your company had nothing 
to do with the incident.
Here are four tips for protecting 
your company and investment:
 1 Talk to your team
Many sponsors believe they have 
insurance coverage through the team they 
sponsor. This may be the case, but it’s 
important to have an understanding of the 
team’s coverage and if it extends to 
sponsors. Be sure to have this discussion 
with the team you sponsor and have a 
contractual agreement in place.
2 Put it in writing
Make sure you have a written contract in 
place between your company and whatever 
business or group you are entering into a 
sponsorship agreement with. The contract 
should clearly
state that the race team, racing facility, or 
sanctioning body will not hold your business 
responsible for claims arising out of incidents 
related to the race team or the facility. Have 
all contracts and
addendums reviewed by an attorney.
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3 Keep your partners 
covered
The race team, racing facility, sanctioning body, and any 
other business or organization you partner with must have 
insurance that covers spectator and participant liability. It’s 
important to not only verify that these coverages are in 
place, but to also have your company named as an additional 
insured.
4 Keep an eye on your 
coverage
When dealing with third parties—other businesses and sponsors, 
venues, and attendees—it is important to continually review your 
coverage. For example, many standard business insurance 
policies will exclude higher-risk ventures like racing. This is a 
common oversight with massive repercussions. It’s important to 
work with your insurance provider to make sure your coverage is 
complete. You may need to purchase your own Race Owners and 
Sponsors Liability coverage to make sure you are protected if the 
policies from the race team, racing facility, or sanctioning body 
are not enough to cover a loss.
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