| A
statement about Club Liability in North America
Here
the problem for the
Standard Motor Club is product liability cover
which excludes the USA and Canada. We have explored the
possibility of extending our cover but the problem is that
whereas we presently have £5 million cover to include safety
critical items extending worldwide except the USA and Canada, if
we extended cover to those countries the only insurance we could
obtain would be to a maximum of £1m, our worldwide cover would
be reduced to fall into line and it would not in any event cover
safety critical items, i.e. brakes steering parts etc. As
a personal injury lawyer I am aware that there are nowadays even
in the English courts many damages awards of well over £1m.
if e.g. a part failed and a head injury ensued. Had
we even taken this limited cover the premium would have
increased by half as much again and we only have about eight USA
and two Canadian members.
We
have tried to extend
our cover not only through our
existing broker but also the brokers recommended by the
Federation of British Historic Vehicle Clubs. The Federation
tell us that we're lucky to have safety critical parts
cover at all even with the USA and Canada exclusion.
Whilst I
appreciate that our N.
American members would probably not sue us there is no guarantee
that an injured 3rd party would not and it would be
foolhardy for us to operate without cover as a members unlimited
club. Constituted as such we would be at risk in a legal action
of all our members being sued and so we owe them a duty to
protect them with insurance cover .If we cannot obtain cover to
protect North American members, who are as much at risk of being
sued as any other member, we need to ensure that they
are protected by our not supplying products to N. America
at all.
I
have thus instructed all the spares officers and our Regalia
Officer to continue our existing policy to ensure that nothing
is supplied to our members in the USA or Canada. I am aware
that until now some items may have slipped through but that
cannot continue.
As
a club I hope we can still assist members in the USA and Canada
in other ways by e.g. giving advice, pointing out parts which
are available on the open market, referring members
to people with similar cars and so on.
If
possible at all, at a practical cost, I would have obtained products
liability cover which
included North America but it seems to be
unavailable. I appreciate that Ian Leggett
wished
to continue to supply regalia but even there I have had no
alternative but to advise him that the risk of litigation
without insurance is too great and I for one do not wish to lose
my home to satisfy a judgment against the club
if say a child swallowed a lapel badge.
I hope our
North American members will understand the position
and would emphasise that we have full insurance cover for the
rest of the world.
Peter
Lockley,
Chairman
Standard
Motor Club.
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