insurance requirments

[navpilot]

just wondering what it may take to get insured to fly a king air with the following experience: total time-2700, multi-1000, turbo prop-150(no king air time),current pt 135 pic navajo. i know some formal training would be required but what about time in type.

 

[cvsfly]

Our insurance is about to renew (will probably go up again!). Our current policy appears pretty strict. We have a late model BE-B200 with all the godies, current value probably around $2.8 mil. We operate 91 for the company and then do 135 charter on the side - about 400 hrs/year total. We carry a high $50 mil in liability. Our current ins requires annual training with full motion sims (Flight Safety and Simuflight approve right now). The "open" pilot mins are: Captain - 3500 ttl, 2000 twin, 100 in type and required co-pilot (91 & 135) is 1000 ttl, 500 me, 25 in type. Lower mins are, of course, allowed with "named pilots". We pay $32,000 in prem with USAIG. For ref. our policy in eff 1/2001 was $22,000/year with no req for co-pilot, but a 10% discount for using a full-time co-pilot and we had $100 mil liability and $3.5 mil on hull. That same policy after 9/11 went to $43,000 - we reduced the liability and hull to get $32K. We just tried to add a named contract co-pilot on who had 3000ttl, 500me, 25 TP (but mostly in skydiving ac) and the underwriter balked - started to ask for more experience than the open co-pilot requirements. We argued it and they let us use him for 1 trip - any more and we have to send himm to training.

I'm feed up with these insurance companies (I know many have dropped out - I think only 3 writing $100 mil liability on GA) Anyone know how to go about self-insuring? My record is good - well above the open pilot req. and have been with this aircraft/company for 3.5 yrs and a long history with our ins agent as well as our current co-pilot who has 1.5 yrs with us. No accidents/incidents on any record, except 1 claim in 1999 (I wasn't flying) where the ins co. paid $80,00 for a lightening strike. The boss sees alot of his friends operating similar ac without the 2 pilot req and stipulations. Our agent explains it has to do with the 135 and high liability. If we wanted single pilot ops it would cost us $50,000/yr. Can anyone else confirm similar requirements and be specific - cost, hull, liability. Thanks.

 

[350DRIVER]

King Air PIC - 3000TT with inhouse training....

421 PIC- 2000TT with inhouse training....

328 Jet PIC- scared to even speculate...

Funny because we have an operator who piggy backs on our 135 ticket with a C90B and another and he uses a different insurance company and he has one captain on the 90 with 1300TT and around 400 multi- (go figure) He is listed on the policy as a "risk" and different stipulations must also be met.- There are ways to get away with "lower" time pilots even present day.

good luck

3 5 0

 

[cvsfly]

I'm sure there is always a way to insure. Just have to be willing to pay the price. I'm sure many people disregard the policy stipulations as well and take the risk from time to time. I assume there are also discounts for multiple aircraft with one agent/underwriter. How much are operators paying on King Airs, jets? Liability limits? Our best bet it seams to reduce cost would be to cancel the charter.

 

[Pilotadjuster]

self insurance

My advice is to talk with your broker about a possible self-insurance plan or perhaps a large self-insured reserve (kinda like a huge deductible). All depends upon how much of the risk you want to keep with your company. The more you retain of course, the lower your premiums...but with more risk you need to look at financing options to keep cash around in case of a loss. A good broker should be able to look at your situation and determine alternative financing options.

If your broker doesn't want to go into that, find another independent broker---you might try getting a list of self-insured companies from your state insurance department and asking a few of them how they administrate and set up their plans.

With a premium that high, it would seem as if you could take the money and invest some of it somewhere to set asside for potential claims, at the very least. Just be sure to look at all options. Total insurance coverage is not your only option, in any case. I would guess total self-insurance is not either. A large SIR might be a better idea, so get with your broker. With premiums this out of whack, I am surprised more companies have not gone that route.

You might also look for any consultants in your phone book under risk management. They are there to provide you with a possible alternative to total insurance coverage, if it is feasable. They will look at your loss frequency and possible severity and try to determine how much insurance vs. self-financing you need.

Good luck!