Re: Quickie insurance

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.


On Fri, Mar 11, 2022 at 1:55 PM Frankenbird Vern <smeshno1@...> wrote:
Easy solution.. do as Charlie Johnson did for his Dragonfly and BUY the airport.. or a piece of it.  Then tell the municipals to jump off a cliff!

From: <> on behalf of Troy Zawlacki <troyzc3@...>
Sent: Friday, March 11, 2022 3:12 AM
To: <>
Subject: Re: [Q-List] Quickie insurance
This is good to know and it seems like im getting consistent info from the insurance agent at least. 

I’m getting into exactly the catch 22 I predicted. I’m trying to figure out a place to put the plane for final inspection and phase 1 fly off, and the airports require liability insurance for a tie down or hangar. Then the insurance won’t insure me until after xx amount of hours in the plane… Exactly the conundrum I expected after researching the topic. Something doesn’t add up here.


On Mar 11, 2022, at 12:15 AM, Corbin via <c_geiser@...> wrote:

Haha…every once in a while we do joke a little about his special they are.  


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