I did and it all seems OK as stated. A couple things may be being overlooked here.

#1. The CD at any sanctioned event, be it a demonstration, fly-in, get-together, contest or whatever, is required to ".... be present at all times when the event he is responsible for is taking place. It is his responsibility to find a suitable replacement if he is unable to fulfill his responsibility."

Point: In large contests there is an overall CD, but the different disciplines may have different Category Directors, then subdivided down to Event Directors. The overall CD can't be everywhere all the time. Not even JR, or AMA can do that!
The highest I ever got up that food chain was Assistant CL Director at the '73 Oshkosh Nats.

#2. If anyone has some reason to sue the landowner, then the for the AMA insurance to be activated also requires that the suit also names the AMA, OR the landowner files a claim against AMA, wherein AMA's liability insurance comes into play to protect AMA. Just like if I run over your dog, you file a suit against me, then I notify my liability insurance carrier and they take it from there, usually settling out-of-court.

Point: AMA PROVIDES insurance, they do not sell insurance. For our level -- all same, for IRC, charitable organizations, not same.

I'm glad I don't have to worry about this crap anymore. I only CD at my club. The Club is the Landowner. I have a Trust account that holds the Club's mortgage and that trust account is additionally insured on the club charter. Sanction or no sanction, it's all covered.

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