Notices of Race always require entrants to have third party liability insurance but there is often variation between clubs and classes on how to capture, process and store evidence of insurances.

Why would an event seek to capture and store this information?  Having third party liability insurance typically provides an indemnity (and hence protection) to an insured party in the case of an incident that caused injury, damage or loss to a third party. In the case of such an incident, the insurance serves to reduce the likelihood of complex, emotionally exhausting and costly litigation to pursue damages. It isn’t to protect a sailor against the costs of fixing their own damage to their equipment, though the usual policy wordings available in the Australian market provide both first party (hull and equipment) and third-party liability cover in the same package., 

World Sailing have led the requirement for boats to have third party liability insurance to ensure that at least a minimum level of protection is in place. Race officials will find default wording in Appendix KG which gives an example of how the Notice of Race can express the requirement. In Australia the minimum cover is typically set at $10,000,000 – an amount that is generally available through the local insurance market for both off-the-beach and larger sailing craft.

Given the important role insurance plays in mitigating the impact on an incident like this, race committees should give consideration on what level of diligence they apply when checking entrant’s third party liability insurance cover. Some race committees consider best practice as being to ask for a copy of the certificate of currency that shows the cover is for the boat, that it covers the type of racing in question to the right value, is valid and current. This of course requires the registration staff to know what they are looking for. 

Not all clubs have the capacity to undertake that level of diligence and it then becomes a question of what is reasonable for the race team in the particular circumstances of an event or regatta. When short staffed or relying on time stressed volunteers, some events ask for the details of who the insurer is, the policy number and its expiry date. This enables the race committee to look at the information and identify anomalies or missing information and pursue those prior to commencement of the event.

Keelboat fleets are more accustomed to having paperwork organised as they usually deal with rating certificates, stability documents and equipment auditing forms. A requirement to submit a copy of the certificate of currency is not out of context. Dinghy fleets seem to represent a different challenge with one sailing manager saying, “it’s like herding cats” and their club does what they can. At a club level event that may be true, but fleets of dinghies attending State and National championships are usually subject to greater rigour and asking for a copy of the certificate of currency is more common. Class associations often set this as a matter of policy for their premier events.

Whilst asking for a copy of their certificate of currency may be seen as best practice, race committees need to consider what is practical and reasonable in their circumstances. Given the capacity of any modern online entry system and their prolific use (including the RevSport system supported by Australia Sailing), it is easy to require an entrant to check a box asking them to explicitly declare they have the required insurance, and provide fields to capture the insurance policy details e.g., name of insurer, policy number, expiry date in a format that can be used and retained by the event. 

The online system therefore requires the entrant to check that their insurance is current and valid, and for the required amounts before entry can be processed and completed.   Most sailors are fine, indeed probably 95%. It is those last five percent who might need a nudge to help remember to tidy up loose ends or check they have what is needed before the insurance is required to be called upon! 

Resources on insurance can be found at https://www.sailingresources.org.au/clubresources/insurance/
World Sailing’s Notice of Race Guide can be found at https://www.sailing.org/raceofficials/eventorganizers/nor.php

By Glen Stanaway