Class Action Claims Savage Race Operator Profited From Selling ‘Essentially Worthless’ Insurance

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A proposed class action out of Florida claims the organizer of Savage Races has unlawfully profited from selling “nearly-worthless” insurance to race participants. The case claims that despite representing its mandatory insurance fee as a pass-through charge, defendant Mad Cap Events, LLC has secretly retained a portion of the fee for itself, generating millions in profit.

According to the complaint, Savage Race is “one of the nation’s largest and most popular obstacle course races.” The case explains that upon signing up for a Savage Race event, participants are required to pay a roughly $70 registration fee plus a “Participant Insurance Contribution” of $15 that they are led to believe is meant to cover any injuries sustained during the race. The lawsuit argues that the insurance is, in truth, “essentially worthless” given the coverage is secondary to participants’ own medical insurance.

At particular issue in the suit is that the defendant allegedly represents the mandatory insurance fee as a “pass through” charge that is paid in its entirety to a third-party insurance carrier. The non-refundable “insurance” fee, whose details are never disclosed to participants, led the plaintiff to believe that Savage Race had no financial interest in the charge, the case says. The suit claims that the defendant further reinforces the impression that the fee is a “pass through” charge in that the company includes the insurance as a separate item in participants’ invoices.

According to the lawsuit, the amount Savage Race pays for insurance coverage is “significantly less” than the $15 charged to race participants. In truth, the suit alleges, the insurance fee is a “hidden profit center” that allows the race organizer to retain a portion of each fee and rake in millions of dollars for selling insurance despite not being licensed for such.

“On information and belief, Savage Race pockets the overcharge as additional profit and conceals this fact from consumers,” the complaint contends. “Savage Race’s records will demonstrate the exact amount it retains for each insurance fee charged.”

The lawsuit claims the defendant’s “insurance kickback scheme,” which reflects allegations in a similar suit filed against the operator of the Spartan Race, has unjustly enriched Savage Race at the expense of event participants.

The lawsuit looks to cover anyone who paid the “Participant Insurance Contribution” at a Savage Race event, with a proposed subclass of Florida residents.