If a company enters a car in club or pro racing (lets say an SCCA event), is the company liable for insidents on the track? For instance, Company X enters a Company X owned car into a race, and due to a vehicle or driver malfuntion the car veers off and destorys other cars or even people. Can Company X be sued? Are there ways of minimizing this liability?

 

Not a legal expert, but unless the incident is due to gross negligence I think you're okay. Otherwise race sponsors would not exist...

 

Anybody can be sued for just about anything. Company X would do well have a special liability policy to cover this activity. It would be arranged as a per event fee. Check with some of your local car autocross clubs. I know the Miata club here has to have supplement per event insurance. IIRC it's a $120-150 per event.

 

Actually, in some cases it may be better if "company x" enters the car.

At one time I considered renting out a car but decided that if I did, i should form a LLC first as a way to help limit liability.

tom

not a lawyer but wish i had one.

 

I'm not talking about Joe Blow running a car sponsored by Company X, I'm talking about Company X entering a Company X owned vehicle with Joe Blow driving it for them. I'm sure this is different for the lawers. But I guess Company X may need some type of special insurance in this case?