MID-VALLEY ATV CLUB         Weather Greenwood ,NS

                  FREQUENTLY ASKED QUESTIONS REGARDING ATVANS INSURANCE

                                                                 Revised 08 Jan, 2007

The following are frequently questions asked about the $ 5,000,000 general liability insurance provided for ATVANS and their scheduled clubs:

1. An ATVer is riding along the trail and is a member of a club/ATVANS. Are they covered? NO, the policy is for the “business operations” of the club or ATVANS, and does not provide individual coverage for members ATV’s

2. An ATVer is participating in a poker run hosted by one of the local clubs. Are they covered? NO, not as a participant. Their individual liability on their ATV is where coverage would be provided. If they are working as a volunteer at the event, such as working at a check point, they are covered under the master policy while working there, as well as going to and from the location.

3. I am a licensed safety instructor. Am I covered while giving a course? You are covered while giving a course sponsored by the club. It will NOT provide coverage while acting as an instructor to others as this is considered a business venture and should be covered under a separate general liability policy.

4. As of April 1, 2007 third party liability insurance is mandatory on an ATV in Nova Scotia. What impact does this have on the master policy? Nothing, as the master policy is not covering the individual’s third party liability or accident benefits on their ATV unless it is being used for the benefit of the club as a volunteer on a sanctioned event such as a poker run or doing trail patrol or trail grooming, maintenance, etc. Even then, it is only providing excess insurance over the individual’s policy.

As a result of the legislation, Jones Brown is in the process of obtaining approval to extend our Open Skies program for club members on their individual ATV’s. It will offer $ 1,000,000 third party liability, accident benefits and optional physical damage coverage on the ATV. Premiums should be very competitive as they will be written on an Association basis. Local agents are also going to be involved throughout the Province to provide local service.

5. Who else is covered under the master liability policy? Coverage is automatically extended to cover land owners who have given approval to use their property as part of a trail or event. It is preferred, but not mandatory, that this agreement be in writing. Any volunteer, whether a member or not, is covered “while acting within their scope of duties” as required. Example, the spouse of a member is selling hot dogs at a fund raiser. They are covered while performing these duties. Once they leave the stand, they are no longer covered.

6. I am working as a volunteer for the local club to sell memberships at a mall. Am I covered? Is the mall covered? How do I get confirmation of insurance for them? Yes, you are covered while selling memberships. The mall would also be insured for their vicarious liability while you are operating there. If they require written confirmation of insurance, please provide a request with complete information (who, when, where) to ATVANS office who will order a certificate from us. They are usually done within a working day via email or fax.

7. The club is hosting an ATV pull. Is it covered? Yes, the event is covered as well as the volunteers working the event as long as it operates under the standards provided by the association. Poker Runs are also automatically covered as neither is considered a race or timed event by underwriters

8. The club is hosting drag races? Are they covered? NO, they are not covered as considered a special event and they must be insured separately. Coverage can be provided through our Motorsport facilities, including participants. You would have to contact Ken Anderson well in advance of the event to obtain a quotation. This is also applicable to mud bogs, as they are considered a race or timed event.

9. The club is hosting our AGM and liquor will be available. Are we covered or do we have to obtain separate liability insurance? Yes, the policy provides Host liquor liability without having to report the event to us.

What does the Directors & Officers policy cover? The general liability covers “bodily injury and/or property damage” to a third party. Directors & Officers excludes those claims covered under the general liability, and covers for “wrongful acts including miss-management of a club”. Wrongful Acts is defined in the policy as any error, misstatement, misleading statement, act, omissions, neglect, or breach of duty committed, attempted or allegedly committed or attempted by an insured person in his insured capacity or any matter claimed against him solely by reason of his serving in such insured capacity. It is commonly referred to as director’s errors and omissions.

Examples of allegations of Wrongful Acts:

The list goes on and on, but these are prime examples of events not covered under the general liability, but are under the directors and officers policy. As you can see, none of these involve bodily injury or property damage. Every incorporated club or entity should carry directors and officers liability. If not, and you serve on a board, consider your personal assets at risk, because they are.

This coverage is not automatically provided by ATVANS, but must be applied for with a completed application, financial information, list of Directors etc. Applications should be sent to ATVANS who will then forward the application to Jones Brown for approval and processing. The Association rate plan will provide clubs with operating budgets of up to $ 100,000 a limit of $ 1,000,000 for as low as $ 250 a year or an alternative $ 2,000,000 limit for $ 400 annual.