You pay your hundred (plus) bucks a year for a race license. Locally, from Cycling BC... And one of the benefits is insurance. This is mostly 3rd party liability in case you run over some bystanders while racing etc...
But it also has some limited benefits to help cover expenses if you get injured competing. Today I finally got a payout for my crash last year at the 6-day (broken collarbone..) I was out of pocket about $2600 for various expenses, mostly physio and paying for an MRI. The physio was capped at $1000, but I still got a payout just under $2000.
So, apperently, the race insurance does have some benefits.
Just remember, you have one year, from the date of the injury, to submit all of your expenses. Keep track of everything and don't loose any receipts. You'll need to forward copies to the claims adjuster.