Insurance Questions
Revised September 2007
This document outlines some frequently asked questions about NAR insurance. It is not an exhaustive review of NAR insurance, and is not a legal document in any contractual sense. Its sole purpose is to provide NAR members with a plain-English explanation of the coverage available to them and to NAR Sections as a standard membership benefit. Members are encouraged to review their particular insurance circumstances with their personal insurance professional.
- What activities does NAR individual insurance
cover?
- What are the coverage limits of the insurance?
- What are the deductibles for the insurance?
- When do NAR insurance benefits kick in on a claim? After my personal insurance has been exhausted?
- If my rocket hurts someone at a club launch (with or without my own stupidity contributing to the accident) does the NAR insurance cover it completely?
- If I or a family member get hurt, does the NAR insurance cover the medical expenses?
- My Section often has non-members attending our launch. Are they covered by NAR insurance when they fly
with us?
- Does this cover rocket-related injuries only? What if I trip over a hole on the launch field and break
a leg?
- Does the NAR insurance cover property damage? If my rocket damages a car (including mine) is this covered? Are we covered if a rocket hits a house and causes damage?
- Are we covered if a rocket hits someone who is not part of the launch?
- Can NAR offer a rider to allow the individual rocketeer to purchase extra coverage above the policy limits?
- Does my insurance expiration date match my membership expiration date?
- Does my insurance (as a senior member) cover my minor children too?
- Will the NAR insurance cover claims related to use of non-certified motors?
- Who is protected under NAR Section insurance?
- Any difference between individual and Section insurance as far as what stuff it can cover?
- OK, what about the site owner insurance we get after we've covered our Section? What does it cover?
- How do I convince Farmer Brown that this is real insurance backed by a reputable provider, so that he'll let me launch on his land? What benefits can I show him?
- A launched rocket is responsible for seriously injuring a human being. The loss of income and medical damages comes to several millions. The NAR covers up to $1 million. The landowner's personal policy doesn't fully cover the
difference. What happens to the landowner?
- Why is that we need to list launch sites in the Section renewal form in order for them to be covered by the insurance?
- When an insured Section is flying, do club officers of that Section need to be present?
- Is there anything that clubs can do to minimize the risk of paying a judgement?
- When should an insurance claim be filed?
- If a claim must be filed, how do I file it?
- How many claims have been filed to date? For what?
- Can I call someone if I have questions about insurance?
- What activities does NAR individual insurance cover?
- What are the coverage limits of the insurance?
- What are the deductibles for the insurance?
- When do NAR insurance benefits kick in on a claim? After my personal insurance has been exhausted?
- Are we covered if a rocket hits someone who is not part of the launch?
- Does my insurance expiration date match my membership expiration date?
- Does my insurance (as a Senior member) cover my minor children too?
- Will the NAR insurance cover claims related to use of non-certified motors?
- Who is protected under NAR Section insurance?
- Any difference between individual and Section insurance as far as what stuff it can cover?
- OK, what about the site owner insurance we get after we've covered our Section? What does it cover?
- When an insured Section is flying, do club officers of that Section need to be present?
- Is there anything that clubs can do to minimize the risk of paying a judgment?
- When should an NAR insurance claim be filed?
- If a claim must be filed, how do I file it?
- How many claims have been filed to date? For what?
- Can I contact someone if I have questions about insurance?
NAR insurance is general liability coverage included as part of your membership benefits. Member insurance helps protect the NAR member from liabilities arising out of NAR sport rocketry activities, including both model and high power rockets. In the event his rocket causes damage or injury to the person or property of another. NAR insurance provides primary coverage for your rocket activities
Return to the top of page.The NAR policy limit is $1,000,000 per occurrence and $2,000,000 aggregate per annum.
Return to the top of page.The NAR policy has a $5,000 deductible per Bodily Injury & Property Damage Claim. Members are personally responsible for payment of the first $1,000 of the deductible. If a member is responsible for more than one claim in any NAR policy period, they will be responsible for the entire amount of the NAR deductible. In the event of a claim filing, failure to pay the deductible may be cause for the loss of membership benefits.
Return to the top of page.No. NAR individual insurance is primary coverage, meaning it applies for all your rocketry activity covered under the NAR Safety Code.
Return to the top of page.NAR insurance will cover individual members up to the existing limits in the policy (up to $1 million annually). However, "stupidity" in disregarding any part of the NAR Safety Codes is never covered. Member protection is void if you violate the NAR Safety Codes.
Return to the top of page.Yes. The NAR policy has a medical payments provision for accidents during NAR operations. The applicable limit for this coverage is $5,000. This would also apply if a fellow club member were to be injured. Other medical insurance coverage you possess (for example, from your employer) must be exhausted first. (The $1,000 per claim deductible also applies to medical expense claims.)
Return to the top of page.No. Non-members are not covered by NAR insurance. To obtain coverage, they must join and become members of the NAR. However, your Section's coverage and your individual NAR members' coverage remains, and they are covered by the policy.
Return to the top of page.Coverage applies to losses arising out of NAR sport rocketry activities. "Activity" would include meetings, field trips, launches, etc. An injury on the premises of such an activity would be part of the activity. (Rules regarding deductibles still apply.)
Return to the top of page.Property damage to "third parties" are covered. Coverage for property damage to the member's owned property is also covered. Any existing member insurance (in this case, auto insurance) would be primary. (Rules regarding deductibles still apply.)
Fire damage coverage is limited to $100,000 per occurrence.
Return to the top of page.Yes. The individual NAR member has primary coverage for rocket activities conducted under the NAR Safety Codes, over and above any existing personal liability coverage (e.g., homeowner's policy). The NAR, and the applicable NAR Section, are also covered. Non-NAR members are not covered. (Rules regarding deductibles still apply.)
Return to the top of page.Currently the NAR's insurance provider has no provisions for additional coverage.
Return to the top of page.All NAR members are additional insureds on the NAR policy as long as they have paid their membership dues and are entered on the NAR membership list.
Return to the top of page.Only if they are also members of the NAR. If your children are not members, then your NAR member insurance does not cover them when they fly rockets. They must also be NAR members.
Return to the top of page.No. NAR insurance is null and void if the accident involves a Safety Code violation. Use of uncertified motors is prohibited by the NAR Safety Codes.
Return to the top of page.Section liability insurance protects the group, corporately, against bodily injury and property damage claims during activities sponsoredby the club. If the Section, as a group, is sued as a result of a rocket accident, the NAR liability policy would respond to the alleged damages, pay for the expenses resulting from the lawsuit, plus damages awarded. Individual members may still be held liable for their own actions. Some additional protection may be achieved if the club is a registered nonprofit corporation -- contact an attorney in your state for guidance.
Return to the top of page.No. Policy limits, deductibles, and coverage are the same for individuals, Sections,and site owners.
Return to the top of page.The coverage to the site owner is to defend him from third-party liability claims brought against then, due to covered activities of the Section held on their property.
Return to the top of page.The NAR Section can deliver "Farmer Brown" an insurance certificate listing the landowner as an additional insured regarding NAR activities on their site. This certificate will be delivered directly to the NAR section contact and it provides the site owner with policy facts such as limits, effective dates, and the insurance company providing the coverage. We strongly recommend the section keep one copy on file with your Section records. You can then deliver the original copy to your landowner. If your landowner has additional questions or concerns, they can then contact our insurance agency directly.
Return to the top of page.The landowner is the least likely party to be found negligent and legally liable for injuries from a rocket. If, however, a court found the landowner legally liable for the loss, and his NAR insurance, and all other personal liability insurance available to him, and the responsible NAR member had been exhausted, he could be personally liable for the balance. (Personal umbrella insurance for NAR members would increase your personal liability coverage, and personal asset protection, in increments of $1,000,000. This coverage is very inexpensive and is strongly recommended for all members to contact their personal insurance agent for at least a $1,000,000 quotation.)
Return to the top of page.Our insurer needs to know the site owner detail information at which Section-sponsored events are held. Listing your Section's sites is a policy requirement.
Return to the top of page.There is no requirement for officers to be present at a Section launch. However, we strongly encourage a responsible club officer to attend all flying events. In all cases, we strongly recommend that a Range Safety Officer be appointed and on duty at all times.
Return to the top of page.Yes! Follow the Safety Codes. Use only certified motors at your launches. Make sure there is a designated Range Safety Officer (RSO) supervising your launches at all times. If in doubt, err on the side of safety.
Return to the top of page.You should file a claim anytime there is an incident at an NAR event which results in more than $500 in property damage or personal injury. If in doubt about the amount of damage, err on the side of caution and file the claim as soon as possible after the incident. Prompt reporting of claims is a policy requirement. File the claim as soon as possible after the incident.
Return to the top of page.Contact NAR HQ immediately after any accident for which you believe you might have to file a claim. They'll have complete information available for you to file a claim. You can also file a preliminary report of your claim by using the Online Claim Form at the NAR website. After completing the form, you will be contacted for further information in order to complete the claim filing.
Return to the top of page.Since NAR first offered insurance in 1993, four claims for approximately $8,900 have been filed. All of these were for property damage claims.
Return to the top of page.NAR members may call or email Bob Blomster at the J. A. Price Agency: (952) 944-8790, Ext. 127. Please understand that Bob is there to address and help with your insurance issues only. Questions about Safety Codes, By-Laws, Section activities, other NAR services and other sport rocketry issues should be directed to the NAR.
Return to the top of page.Disclaimer
These scenarios listed above are for reference purposes only. Coverage acceptance, or denial, depends on the material facts of the incident and the applicable coverages, or exclusions, on the policy. Final coverage determination can only be made by the respective insurance company.