SORBA’s General Liability insurance:
What to tell SORBA members about SORBA’s General Liability insurance
First, SORBA and its Chapters are covered until March 2021.
SORBA, like all other mountain biking and trail organizations that actively build trails was informed in January that our existing coverage would not be renewed.
After a thorough search for a new policy, the only product SORBA could find was acquired in time to prevent a lapse in coverage. This coverage was not ideal.
The new policy cost twice as much as SORBA budgeted for insurance coverage. Generously, IMBA loaned us the difference in an interest free loan. This loan needs to be paid back by November 2020.
On a web-based SORBA Board of Directors meeting held on Saturday, March 22, the Board decided, in a unanimous vote, that each chapter would pay $3.50 per member to repay this loan to IMBA. SORBA’s goal is to have this debt paid in full by November 1.
In order to help prevent a repeat of this situation for 2021, SORBA will work with the chapters and IMBA to create a plan so that SORBA and its chapters can better anticipate rising insurance costs.
Among the solutions that will be considered will be an increase in membership dues, an even greater effort to raise membership, and consideration of altering the SORBA Chapter revenue split.
Even more important than the price SORBA is paying for this coverage is that SORBA is not fully satisfied with the current coverage, which has reduced limits; especially concerning is the $300,000 on completed operations.
Completed Operations is a provision that covers SORBA, its chapters, and members from lawsuits stemming from user accidents that occur on a trail, pump track or bike park. (anything constructed by SORBA volunteers).
SORBA and the full Board believe the completed projects coverage should be $1 million. SORBA will look into alternative insurance products for 2021. The higher coverage could cost much more than we are currently paying.
How this impacts the SORBA Orlando chapter:
For us, we have 135 members. 135 times $3.50 is $472.50. That is what is due by SORBA Orlando. Also, membership dues will be going up to cover the higher insurance premium. Not by much though.