Chris_RC

I am looking to reopen a track that closed down after the Hobbytown that leased the land left. I am getting a $1 a year lease and insurance it the main issue. I was told to get RC Pro insurance, but if that didn't work out to get ROAR insurance. Even though ROAR is alot cheaper, racers will need to get a $30 membership and most people around the track are just bashers that will come on practice days. I was told to get a 2million insurance, but will 1million be adequate? And does anyone know of any other insurance companies that would be cheap? Does ROAR require me to hire an inspector to inspect everything to get it up to code? Because there are some open wires, etc. but elctricans will charge alot of money.

Here are some pictures of the track. [link]http://s190.photobucket.com/albums/z94/mrc20023/[/link].Go the first line, last picture to the 3rd line, 2nd picture. The facility already has lights (not up to code though), electricity (probably 20 outlets), a 480V to 110V converter that cost $1000 new, and a power box. It is missing a meter though. For drivers stand it is based on a container where I can store stuff, and has a smooth walkway up to the stand. The owner said it cost $3,500 to build it up the way it is. There are 2 watering outlets, but like elctricity, they need to be hooked up.

moebigslee

Have you actually talked with roar and rc pro yet and gotten numbers from them? If so how much do they want for 2 million in coverage? If the city told you 2 million in coverage was needed then thats probably what your going to have to get. I'm sure their risk assesment people or their own insurance company came up with the 2 million dollar figure. Insurance is weird sometimes, just because you need 2 million in coverage it doesn't mean it's going to cost twice as much as 1 million in coverage. This is all just speculation until you actually talk with the people from road and rc pro and get the real numbers. Good luck.

kistner

My Feedback: (10)

it also does not hurt to talk to your local insurance agent, tell him you need liability insurance for a hobby track. doesn't hurt to have a third quote. My business insurance is from nationwide, they all have some. On the other hand I also have special error insurance for my line of work that is not available from every insurance agent; you have to ask to find out.

Also, insurance agents (should be no cost to you) will usually do a walk through of the site/premises. these guys are not contractors, etc but open wires will be a red flag to them and if they see something like that they will require repair. I'd try to get that stuff squared away prior to them coming out. I would attempt to be 'up to code' prior to doing the insurance stuff. I'll also add that an insurance office may actually have an inspector on staff or on call that is up to speed with codes and such.

electric company will throw a meter on there after you get service.

Moe is correct about insurance, it will not be half price for half the coverage. who came up with the 2 mill figure?

Chris_RC

I will ask an insurance agent, but I will almost guarantee that they will charge. I want to try to get the least certified person I can, because the facility isnt totally up to code. For example there is a set of outlelts right by the 480 to 110V converter, probably round 30 lights, then there is a cople lights scattered around the track, like on the other side, on the drivers stand, and some have open wires. I will not use those though. Also, the drivers stand doesn't feel totally secure when talking up it and if you step on a certain palce it makes a craing noise from all the heat.

kistner

My Feedback: (10)

charge for what? if you buy insurance from them they will not charge you to walk the site. They might drive by it first before they let you get insurance. You need to fix the deficiencies prior to all of that. Open wires are easy to fix, put them in a junction box with wire nuts.

Chris_RC

That's the thing, if I buy insurance from them. I was talking to the owners at Thunder Alley and they said they pay $1,200 a year for 2mil insurance, but if they would of done it over they would of went with RC Pro Insruance, then ROAR Insruance which are alot cheaper.

Chris_RC

I haven't talked to ROAR or RCPRO yet, but ROAR has a link that says it is $35 a year to cover. Also, I don't have the lease yet, so I can't do anything with the property except jump the fence to get a better view. I will be required to ahve insurance before the lease, so I wont get much of a chance to get it up to code.

kistner

My Feedback: (10)

many insurance carriers will give you some time to fix the deficiencies. Also, I know you have talked to the owners, etc, ask for the key, even if its just for a weekend and get some of the work done. particularly the wiring.

AMOUREDTANK

Definately safety first! It is way more important to get the wiring covered and the stand secure. Unless you want to be using your insurance right away. I wouldn't go anywhere near the track once you got it running if i read your posts. Your making it sound like you want to do a quick half@$$ed setup. Safety is not something that you can short cut. If you want people to come and race you need to get that stuff taken care of first and foremost and put a little pride in your work.

Chris_RC

The city owns the property. It is a place where you cannot build anything on so that is why they are giving me the land so cheap. I think I will have to break the locks as the previous owner locked everything up.

AMOUREDTANK, When i read it over, it is not that bad, just not all metal and top of the line like everything at Thudner Alley is. Talking about TA, I went there, and the big question is LLC (Limited Liability Company) or NonProfit. If I go LLC and someone sues me, they will take the track, not my house. If I go nonprofit, it is harder to get into, and I will have to tell whoever is in charge of the nonprofit that it will be a club, and I can get insruance cheaper. I don't think that even a 300 pound person will fall through, but like I said, it will definitly not collaspe. Just the years of summer and heat took a toll.

And insruance, to go RC Pro, ROAR, or another company (Allstate, Ntionwide, etc.)? ROAR is only $35 a year, but everyone who steps foot on the track will need to have a ROAR membership which is $30, and like I said most people around here just have basher setups. I have heard RC Pro is great, but the lady hasn't emailed me back in a couple days. And I need to know how much the other companies would charge for a 2million liability.

I will ask the city once they call me back to go in there to fix the wires, etc. and see what needs to be done. So looking at about $1,000< to start it up.

Chris_RC

Another small update. I scheduled an appointment with city hall Friday at 3:00 PM. What should I talk to them about?

RCtruckRacer

First, your overall basic business plan. You do have one don't you? If not that should be your priority. If you can afford it, get an attorney's office to do it for you. Most won't charge more than $250. It sounds like you might need their advice anyway, as they will be able to tell you specifically what would be best for you in your particular situation: LLC, Non-profit, C corp, etc. If I remember correctly, your premiums might vary widely depending on what you are too. From a private insurer anyway.

How many people are we talking about? Will you hold any scheduled events, or will it just be a free for all place to bash? My guess is that the city would be less happy with an unsupervised playground than your standard race track that holds regular club events. But, I obviously can't say for sure. But those are some of the things they will want to know.

Your business plan (needed to form a C corp, LLC or even a Non profit) should answer most any questions that the council will have. In fact, the closer that is to being true, the more likely they should be to approve it. If it were me, I wouldn't even consider a venture like this without consulting an attorney. They are the best CYA insurance you can buy. I realize this is supposed to be a small deal, but you already mentioned one biggie - what if someone sues you. An ounce of prevention is worth a pound of cure, so the saying goes.


EDIT:

P.S. I am SO jealous. My club might be losing our track and we may be looking for a new home. We would SO be all over that if we lived near you!!!

Chris_RC

EDIT

MonkeyFist

If I understand ROAR rule correctly they only cover you at a ROAR sanctioned event's. Basic club racing is not covered. That is what I have read in the past. What about AMA? The local non profit club here requires AMA insurance even for us car guys. That covers you on an individual basis. AMA membership is like $55 a year.

RCtruckRacer

The reason I say a business plan should be your priority is because you have to have one to file the paperwork for the Non profit, LLC or whatever. To be perfectly honest, I don't know quite enough about it to say with authority what exactly needs to be in it. I must suggest going to an attorney. You may even be able to find a business that has para-legals to help you with this. That will lower the costs considerably.

I have seen our club's Business Plan (we have a 501c non profit tax ID #, which sounds like what you want/need) and its not much. But I really can't remember what was on it. Club by-laws, member requirements, Articles of Incorporation, Officer list... I think it was only 1 page with a few attachments. It sounds like a huge undertaking, but its really not too bad. Especially if you have someone to help you - like an attorney or a legal forms company. At least make some calls about it, you might be able to find a place that will help you do everything yourself on the cheap!