[Tengu]

I hope you don't mind my 2 bob's worth......Insurance for an organisation only covers the owners / operators / staff / volunteers of that organisation in the event a claim for injury or damage is made against them. The cover does not extend to other parties. If another party, lets say a track user, collides and injures another driver, they are generally not covered under the organisation's insurance. It is common practice that the injured party's lawyers will sue both the offending driver and the organisation (track owners). In the absence of insurance cover for the offending driver, the organisation ( track owners) wears most, if not all of the litigation determination and associated costs. If however, the offending driver has extended third party cover, then they will most likely wear most if not all of the law suit costs (covered by their insurance), unless of course, the track owners have been proven to have been negligent and contributed to the accident. So in short.....by ensuring that participants have adequate cover, the owners or organisers are less exposed to losses resulting from claims brought against them.
I hope that makes sense.