Re: Quickie insurance
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Robert Cringely
There are no easy solutions, but there are solutions. Mine isn't easy but it works, sorta. I run a little startup company that owns several difficult-to-insure aircraft, none of which I am yet qualified to fly, by the way. The two 1980s Falcon 10s aren't difficult to insure (yet -- they are about to be recertified as Experimental R&D, which I am sure will bring new insurance headaches) but the five Lockheed F-104s are another matter altogether. The only way to insure the Starfighters is by reinsuring them, much as many companies do with their health insurance. The planes are "insured" by AVEMCO, but they are actually insured by our company (self-insured) backed-up by a reinsurance policy from Lloyds of London. Reinsurance is insurance for insurance companies. So AVEMCO administers the coverage for a fee but pays no claims, just passing them through to us. If there are any claims (none so far) our little startup pays for the first $1 million, then Lloyds picks-up anything above that amount. We have a separate corporate liability policy that covers the liability portion of all claims with a $100,000 deductible. So to be perfectly accurate we are on the hook for about $600K per airplane taking into account hull value, all for under $100K total per year. What does that have to do with little experimentals? I use my Thorp T-18 for work so my employment contract includes as a fringe benefit covering my airplane insurance, which so far has been free for the company. Just to be completely transparent, the insurance is bundled into my hangar benefit (we already had a couple hangars full of jets, remember). Doing it that way allows me to get reimbursed for standard IRS car mileage for my business use of the plane, which I guess in this instance is considered a flying car? I actually make a small profit on the mileage. When I get my turbo-diesel Q1 in the air I'll make an even bigger profit. Bob
On Fri, Mar 11, 2022 at 1:55 PM Frankenbird Vern <smeshno1@...> wrote:
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