| URGENT
LIABILITY INS. MESSAGE UPDATE |
We hope you received and read the important insurance email we sent you
Wednesday, July 17. In that message, we alerted you to the possibility - in
fact, the likelihood - that the current IMBA club liability insurance policy
is not in force.
Here's an update:
1) McKay Insurance (the broker of IMBA club insurance) is working hard to
secure replacement coverage. McKay has submitted written proposals for new
IMBA club insurance to six companies. According to McKay, one company in
particular seems enthusiastic about providing coverage and has told McKay
that they will provide details (coverage parameters and prices) by the end of
next week. New coverage could be available by early August, but we don't know
for sure. We don't have information yet on the cost of any new coverage.
3) McKay told IMBA that all of the payments he has collected from IMBA clubs
have been remitted to Harbour Entertainment and Sports to pay for coverage.
McKay says that Texas Division of Insurance fraud investigators are working
to recoup those payments. The California Division of Insurance is also
investigating. We'll keep you posted as we hear news.
4) Some of you have asked us to describe McKay's relationship with Harbour
Entertainment and Sports. Harbour groups the insurance needs of small
organizations and presents this consolidated group to large international
insurance companies to receive volume pricing. McKay says this is a common
practice in the insurance industry. Formerly based in California, Harbour
moved to Texas. Thus, the insurance departments of both states are
investigating this situation. McKay says that more than 100 insurance agents
have been affected by this issue with Harbour.
5) Several IMBA clubs have contacted us since Wednesday asking for advice
related to upcoming special events. We have recommended two courses of action:
a) IMBA suggests that small events such as trailwork days, skills clinics and
group rides be postponed, pending the outcome of this insurance issue. We
believe it would be prohibitively expensive to find liability coverage for
these small events.
b) We recommend that larger events be postponed, cancelled, or alternative
insurance secured. Some club liability coverage is available from NORBA. The
coverage is primarily designed for racing clubs: you'll need to describe your
needs and special activities and ask if they will be covered. Your group will
need to be a member of NORBA to qualify. The folks at NORBA are aware of the
situation and are available to help. They are pro-rating annual club
membership dues and waiving late fees related to event permitting and
insurance. Contact Rita Lucas, NORBA promoter services, by phone at
719-866-4581 or email at rlucas@usacycling.org. General information about
NORBA club membership and insurance is available at:
http://www.usacycling.org/membership/?clubs/clubinsurance.html
We will continue to gather information and share it with you as quickly as
possible.
Thank you for your understanding and cooperation as we work to resolve this difficult situation.
Best wishes,
Tim Blumenthal
IMBA Executive Director
Tim Blumenthal-Executive Director
International Mountain Bicycling Association
ph: (303)545-9011 x 102, FAX: (303)545-9026
e-mail: tim@imba.com website: http://www.imba.com