As you will have learned from KARM Levels 1 & 2, managing risk can be a rewarding experience for any club. You may enjoy a variety of benefits through a structured risk management process including higher standards of service to your members, improved morale and effecive decision making.

Risk management is as much about protecting your club from foreseeable risk as it is about reducing exposure to litigation or fines/penalties.

In any class of Motor Sport, including Karting, injury to Participants and Spectators is the highest risk faced by organisors & administrators.

From injury as a result of an on-track accident, to a spectator injured as a result of debris being flung over a protective barrier to a simple slip & fall of a visitor to the track, a serious injury at your club is more likely a case if when, not if.

It is important to note that as a club, your obligation to ensure a safe environment goes beyond just the drivers and support crew competing on the circuit.  Be it supporting family and friends, spectators and other guests to your venue, your club carries a legal responsibility to ensure a safe environment to participate and support the karting events.

Failure to do so can result in both Public Liability claims against the club (insured via the Australian Karting Association policies) and the Directors' for breaches of Workplace Health & Safety Laws (Statutory Liability insurance - purcahsed seperately to the Australian Karting Association's policies).

It is mandatory that every Kart club has a fully stocked First Aid Kit available and easily accessible for use in the event of an incident.  As part of the Karting Australia Risk Management Program, an approved Karing Australia - First Aid Checklist can be viewed by clicking here.

On a regular basis your club’s first aid kit should be audited, using the checklist, to make sure that all materials are contained and that they are in date. If a material is out of date it should be disposed of and replaced. A tip to make sure this audit occurs is to place several checklists in the front of the first aid kit so that when someone goes to complete the audit, the checklist is right there.

The first aid kit should be visible, easy to access (e.g. not locked away in the office) and near the medical emergency plan of the club.

As per Karting Australia Rules, qualified First Aid Personnel must be in attendence at all meetings.  The minimum recommended qualification is Level 2 First Aid (HLTAID003).  For further information regarding First Aid Qualifications, please visit St. John First Aid Training.

However in the event of a serious incident at your venue, the on-site First Aid personnel may not be equipped to deliver the emergency assistance required and the ambulance service will be required to attend.  Depending on the location of your club, this could result in either an emergency vehicle or helicopter attending the circuit to commence treatment.

“Clubhouse burns to the ground in Brisbane East”

“Canteen fire destroys new sports centre”

“Senseless blaze destroys clubhouse & contents”

News headlines such as these are becoming more common.

More so than most sporting groups, Kart clubs, with a combination of circuit, clubhouses and storage facilities, are classified as high risk in terms of Fire damage.  

It is common to find storage of flammable liquids, the use of timber in the construction of club buildings and comparably low levels of security protection to stop unwated trespassers accessing the property at Kart clubs across the country.

Fire can be devestating to a Kart club.  From the cost of repairing heat damage to the circuit, to the buildings and contents within them, if a Kart circuit was to be ravaged by fire, if not insured, it would be near on impossible to recover.

It is strongly recommended that every club should consider how they can reduce their risk of fire damage, and what level of insurance they have in place to replace or rebuild any damaged property.

To make the process as easy as possible, as part of the Karting Australia Risk Management Program, an approved Karting Australia Fire Safety Checklist can be viewed here.

Fire Extinguishers are the easiest and fastest way of protecting you and your club when a fire occurs. Over 90% of all fires are first extinguished using a portable fire extinguisher, and countless lives are saved due to diligence in testing and maintaining fire extinguishers.

The Karting Australia Fire Safety Checklist provides advice as to the number and location of fire extinguishers at your club:

Fire Extinguisher locations - Paddock

• Fuel testing area (if in use at the event)
• Fuel disposing area (if in use at the event)
• Four other accessible points in the paddock (events up to 200 competitors)
• Additional paddock extinguishers (1 extinguisher per 100 competitiors in excess of 200)
• Weigh scales
• Out grid

Fire Extinguisher locations - Circuit

• Flag or signal light points
• Adjacent to control line
• Grid entry road from circuit

Ready access to fire extinguishers (that are serviced as per Australian Standards AS 1851 2012) is one of the key Risk Management procedures that have the ability to:

• Reduce injury to any participant / spectator
• Reduce damge to property
• Protect a clubs financial viability
• Ensure compliance with Karting Australia guidelines

Karting Australia's National Circuit Construction and Safety Guidelines provide guidance on where fire extinguishers are to be located at any Karting circuit.

In order to complete KARM Level's 3 and 4, your club will be required to partially complete a Risk Management Action Plan.  The purpose of a Risk Management Action Plan is to guide you through  a five step process of Risk Management being:

• Step 1 - Establishing the context (Level 3)
• Step 2 - Identify the risk (Level 3)
• Step 3 - Analyse the risk (Level 3)
• Step 4 - Evaluate the risk (Level 4)
• Step 5 - Treat the risk (Level 4)

"It will never happen to me!"

Many people and businesses have uttered these famous last words only to have the worst occur.  The world of Sport has seen its fair share of tragedy, and despite all the best endevours of the clubs, owners and participants, disaster can strike.

From grandstand collapses to debris flying through barriers, there are risks that whilst seemingly fanciful, have occured within the Motor Sport community and could happen to your club.  So when considering risk at your club, regardless as to how unlikley a risk may be, having a plan to address and minimise the exposure puts your club in a better position than the next that ignores the risk and simply hopes for the best.

When considering the Likelihood of risk when completing a risk matrix assessment, you need to chose as to if the risk is:

• Almost Certain
• Likely
• Possible
• Unlikely

"How bad could it be?"

Much like "It will never happen to me", downplaying the severity of the consequence has often been the downfall when considering the negative outcome of a decision or risk.

From minor injuries to the death of a participant or spectator, to the loss of club property and legal action against commitee members, there are consequences that whilst seemingly fanciful, have occured within the Motor Sport community and could happen to your club. 

So when considering risk at your club, regardless as to how unlikley a risk may be, having a plan to address and minimise the exposure puts your club in a better position than the next that ignores the risk and simply hopes for the best.

When considering the Consequence of risk when completing a risk matrix assessment, you need to chose as to if the potential impact is:

• Major
• Moderate
• Minor
• Insignificant

The following insurance policies are automatically covered through the Karting Australia National Insurance Program.

Affiliated clubs are covered by the policies as per the policy terms, limits and scope of cover.

For further information, please refer to www.ajg.com.au/ka

PUBLIC LIABILITY - INCLUDED IN KA INSURANCE PROGRAM

Accusations of negligence may be made against the club (as a legal entity) or they may be made against individuals within the club who allegedly caused or contributed to the negligence.

Administrators, volunteers, officials, etc. can incur personal liability.

Public liability insurance covers liability that results from loss of or damage to property, loss of use of property and death or injury due to negligence, but excluding breach of professional duty. 

Public Liability Insurance is automatically provided to all affiliated clubs within the Karting Australia National Insurance Program and provides cover to all affiliated karting clubs including their volunteers, officials and administrators.

PROFESSIONAL INDEMNITY - INCLUDED IN KA INSURANCE PROGRAM

Professional indemnity insurance indemnifies the insured against claims for compensation for breach of professional duty where an accusation of negligence is made suggesting that an act, error, omission or advice caused their losss.

PERSONAL ACCIDENT INSURANCE - INCLUDED WITHIN THE KA NATIONAL INSURANCE PROGRAM

Participating in sport has the potential for injury. Personal Accident Insurance provides agreed benefits in the event of injury where permanent disability is incurred, earning capacity is lost or medical and associated expenses are incurred.

At times those unfamiliar with insurance have difficulty in identifying how public liability insurance interacts with personal injury covers.

Public liability insurance responds only in the case where injury or property damage occurs as a result of negligence. A breach of a duty of care is involved, and any compensation is brought about by mutual agreement between the insurer and the injured party or as determined by a judgment in court.

In the case of personal accident insurance, this is often a 'no fault' policy.  The policy responds with pre-agreed benefits between the insurance company and the insured at the time of taking out the cover and confirmed in the policy schedules. Subject to policy conditions, the agreed benefits are payable if an injury and resultant financial loss occurs.

The following policies are not automatically covered by the Karting Australia National Insurance Program.  

Clubs who require further information should make contact with AJG direct or visit www.ajg.com.au/ka

DIRECTORS AND OFFICERS LIABILITY - NOT INCLUDED IN KA INSURANCE PROGRAM

A Directors and Officers insurance policy has two insuring clauses.

The first states that the insurer will cover a Director and Officer for any loss where their club (as an incorporated body) may not legally indemnify them as an individual through their incorporation status.

The second insuring clause states that the insurer will cover the club (as an Incorporated Body) for any loss for which they are legally permitted to pay arising out of any wrongful act committed by any director or officer in their capacity of director or officer.

It must be noted that these insuring clauses relate to the actions of the directors and/or officers personally, not the actions of the legal entity of the club for whom they act as directors and officers.

Examples of Directors and Officers Liability coverage may include:

• Libel & Slander
• Occupational Health & Safety
• Attending Investigations/Enquiries
• Employment Practices Liability
• Fraud & Dishonesty of Employees
• Breach of Contract
• Trade Practices Legislation

TRAVEL INSURANCE - NOT INCLUDED WITHIN THE KA NATIONAL INSURANCE PROGRAM

Travel Insurance is a variety of personal accident insurance, but it can include liability protection, luggage and personal effects cover, travel cancellation benefits, kidnap, ransom and extortion, rental vehicle collision and theft excess waiver benefits in addition to the standard personal accident protection.

ASSET INSURANCE - NOT INCLUDED WITHIN THE KA NATIONAL INSURANCE PROGRAM

Karting clubs are extremely diverse in terms of size, financial turnover and assets. Therefore the types of insurance they will require to protect their property will vary considerably from one club to another.

Property can be damaged or destroyed by any number of means. Fire, storm and other water damage, vandalism, explosion, burglary and theft, breakdown, misappropriation, impact by vehicles, other types of damage, even earthquake; they all have the potential to provide financial difficulty.

Some general insurance packages are often not appropriate for the property of karting clubs.  However, by choosing a broker with motor sport experience, it is possible to obtain the various sections of cover required.

CANCELLATION AND ABANDONMENT INSURANCE - NOT INCLUDED WITHIN THE KA NATIONAL INSURANCE PROGRAM

Cancellation and Abandonment insurance policies guard against the costs and loss of revenue associated with canceling, postponing or abandoning activities due to events as specified in the policy schedules e.g. weather, non appearance of special guest, airline strike.

The cover is specifically designed to fit the requirements of the situation. Special care should be taken to understand the terms and conditions of these covers.

CONTINGENCY INSURANCE - NOT INCLUDED WITHIN THE KA NATIONAL INSURANCE PROGRAM

Has your club ever wanted to offer a large prize incentive for a special activity or event? Special Contingency Insurance protects against financial disadvantage from a nominated contingency e.g. hole in one cover for a golf day - if you offer a prize for a hole in one and someone wins that prize, you can be reimbursed for your financial disadvantage.

To complete Task 2, you must download and save the KARM First Aid Checklist file.  

FIRST AID CHECKLIST EXAMPLE (PDF VERSION).

Once downloaded, please complete the declaration below.

To complete Task 2, you must download and save the KARM First Aid Checklist file.  

FIRE SAFETY CHECKLIST EXAMPLE (PDF VERSION).

Once downloaded, please complete the declaration below.

To complete Task 2, you view the KARM Club Risk Management Plan below.  On completion of the Online portion of KARM Level 3, you will be e-mailed your own copy of the KARM Club Risk Management template to work from.

Once viewed, please complete the declaration below.