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If your affiliate is considering sponsoring a bicycle fundraising event, you are required to obtain separate Liability/Special Event insurance coverage to cover the event.
Please take note that Special Event insurance coverage for bicycle events is becoming increasingly difficult to find. Several very large insurance claims involving bicycle events have steered most insurance companies away from writing this coverage. There are several insurance carriers that offer coverage for spectators, but coverage for event participants is excluded. Such spectator-only coverage is NOT sufficient or acceptable for Habitat affiliates.
We have found that the only way most insurance companies are now willing to offer coverage for event participants is if the event route is completely blocked off during the course of the event (which is not a feasible option in many cases). We are aware of only one remaining open-course solution, discussed below.
Please note, however, that we are not affiliated with this company and do not know whether, or for how long, their policy will continue to be a possible solution for affiliate-sponsored bicycle events. Accordingly, we strongly recommend that affiliates give immediate consideration to moving away from bicycle events or, at a minimum, begin planning to have these events on closed courses only.
In the meantime, McKay Insurance Agency (Knoxville, IA) currently offers a Special Event program for bicycle events, underwritten by Lexington Insurance Company (an AIG Company). Coverage for participants is included in the policy, without the street closure requirement.
The policy limit is $1 million per occurrence, with a $2 million aggregate limit. The policy includes a form that outlines the conditions and requirements of coverage. One of the essential requirements is that of securing a signed waiver from all event participants. Failure to comply with these conditions will void coverage, so it’s important to read the conditions and requirements carefully.
Habitat affiliates should work with McKay Insurance Agency directly to secure a policy for bicycle events. Call toll free: 800-942-0283.