The cash needs to be 30 to 40% of anual turnover to safely cover the uninsured excess risk on a number of events each year, without risking the survival of the club.

Why? We are involved in motorsport where "if sh*t really happens" the liability can be very large, running into millions. Yes there is insurance but the policy excesses reflect the potential risk. A bridge club it is not!!

We also used to underwrite the travel club, we continue to underwrite the MOG annual event and other MSCC events, including some of the motrsports activities.

Consider what would happen if we had a MOG event booked, planned and so on and an outbrake of foot and mouth or a major terrorist incident resulted, at very short notice, in the venue being "off limits" and travel restricted in the area, as has happened in the past with foot and mouth. We would have to cancel could lose perhaps £50K on the event and hotel cancellations.

Again, consider what would happen if, at a sporting event, a major accident resulted in the death of spectators. Again these days the "compensation culture" means everyone would be after as much as they can get. Insurance foots the bill, but there is a big excess to pay.

Both are highly improbable, but two such bad events in one year could see 50% of the reserve gone. Without the reserve the club would go.

We are working on managing the risk, by outsourcing activities, which means the reserve might be brought down in the future. But at the moment the National Committee considers it to be "prudent" to maintain it.

Peter,
66, 2016 Porsche Boxster S
No longer driving Tarka, the 2014 Plus 8...