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Self Insurance, can a club insure themselves?

Discussion in 'Ferrari Discussion (not model specific)' started by Artvonne, Sep 24, 2005.

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  1. Artvonne

    Artvonne F1 Veteran

    Oct 29, 2004
    5,379
    NWA
    Full Name:
    Paul
    #1 Artvonne, Sep 24, 2005
    Seeing these various Leland threads, and some others that have came to light, I was wondering. Is it possible we could somehow invest in ourselves and self insure our own property? From the states perspective we only are required to carry liability, although many of us want to carry higher limits. I would just imagine that with 20,000 people here, although perhaps only a few percent would be interested, we could potentially form our own group. Thoughts??
     
  2. M512

    M512 Formula Junior

    Sep 5, 2005
    635
    Earth
    Full Name:
    M512
    #2 M512, Sep 24, 2005
    I think that is a nice idea but not realistic. Many of the newer models are substantial money. I do not believe there are enough owners on the site to cover the risk at a reasonable rate. Even if there are 1000 owners on this site, and assuming you get together and have people that can manage the funds for free, many would want collision and OTC in addition to liability. I know I will not insure mine without those (when I get it). For illustration purposes, if everyone pays $4,000 in premiums per year, that's $400,000. One wreck could eat that entire pot, then there is no liability or theft (OTC) or collision coverage left for anyone else.

    Self insurance only works for larger businesses with cash flow significant enough to absorb the larger risks.
     
  3. docweed

    docweed Formula Junior

    Dec 8, 2004
    452
    Morgantown,WV
    Full Name:
    Chuck Stewart
    #3 docweed, Sep 25, 2005
    How about timing belt insurance?
     
  4. GERRA456gt

    GERRA456gt Formula 3

    Jun 4, 2005
    1,407
    Australia, Melbourne
    Full Name:
    Anthony
    #4 GERRA456gt, Sep 25, 2005
    i am curious,
    what is the insurance for say a
    355,360,430?
    F40?
    F50?
     
  5. yasir

    yasir Formula Junior

    Nov 5, 2003
    352
    #5 yasir, Sep 25, 2005
    $4,000 x 1000 people = $4,000,000 which is a million and not $400,000,fuuny how just one zero can make such a huge difference....
     
  6. M512

    M512 Formula Junior

    Sep 5, 2005
    635
    Earth
    Full Name:
    M512
    #6 M512, Sep 25, 2005
    Guess I shouldn't have been doing math after that many Oktoberfest Lagers. LOL Nice catch!
     
  7. FarmerDave

    FarmerDave F1 World Champ
    Consultant

    Jul 26, 2004
    15,782
    Full Name:
    IgnoranteWest
    #7 FarmerDave, Sep 25, 2005
    $4MM may sound like alot of money to have in reserve, however,

    -Regardless of being a club effort, there are still administrative costs associated with underwriting, billing, claims service, etc.
    -Untold legal and compliance costs associated with getting regulatory approval to do business in the states where your members exist (each state will be different and have different rules, laws, etc.)
     

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