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If you are planning a bicycle event to raise funds at your affiliate, don’t forget that you are required to obtain a separate Liability/Special Event insurance coverage to cover the event. HFHI requires that affiliates have Special Event coverage with a $2 million per occurrence limit. Additionally, the policy must name Habitat for Humanity International, Inc. as an Additional Insured.
Please be aware, however, that coverage for bicycle (and some other types of special events) is NOT included in the General Liability insurance issued by ACE as part of the Habitat for Humanity Affiliate Insurance Program. (See the Insurance Management & Other Tools section on the affiliate page of our website for more information about covered Special Events.)
In fact, insurance coverage for bicycle events is becoming difficult to find. Several very large insurance claims involving bicycle events have steered most insurance companies away from writing this coverage. There are some insurance carriers that offer coverage for spectators, but coverage for event participants is excluded. Spectator-only coverage is NOT sufficient or acceptable for Habitat affiliates.
We’ve found that the only way most insurance companies are willing to offer coverage for event participants is if the event route is completely blocked off during the course of the event, which in most cases is not a feasible option.
A good option for your Special Events coverage
McKay Insurance Agency (Knoxville, IA) offers a Special Event policy 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 through McKay offers a $1 million per occurrence limit ($2 million aggregate). To meet HFHI’s $2 million per occurrence limit requirement, affiliates also need to purchase an additional $1 million Excess Liability policy limit from McKay.
One of the essential requirements of the policy through McKay is that a signed waiver MUST be received from all event participants. Failure to comply with this and other policy conditions will void coverage, so it’s important to read the conditions and requirements carefully.
Lockton is not affiliated with McKay Insurance Company and therefore, we do not know whether McKay’s Special Event program will continue to be a possible solution for affiliate-sponsored bicycle events. If affiliates are unable to obtain adequate bicycle event coverage, they will no longer be permitted to sponsor bicycle fund-raising events.
Habitat affiliates should work with McKay Insurance Agency directly to secure a policy for bicycle events. Call them toll-free at 800-942-0283.