Just to get the two policies separated, there is the policy you get with your $100 membership fee or whatever, which supposedly covers participants in sanctioned _s. Then, there is the second policy, which costs an amount dependent on the number of courses, sites, jumps, ramps, etc. that your club has. That is more in the nature of a general liability policy, wherein if little Suzy, who is not a club member, swims out in the lake, gets tangled up in the buoy lines and drowns, the insurance coverage would be applicable.
That is, at least, how I read it. Not tested in the field, fortunately.
Thoughts?