Owners Insurance?

[JDJ]

I am contimplating buying a C-150 and instructing out of it. My question is what kind of insurance do I need and where is it purchased? Also what price range can I expect? What are the in's and out's of insurance for instructing? Any information or experiences would be greatly appreciated.

JDJ

 

[JDJ]

AOPA

Thanks for the info. I checked with AOPA and the lady I talked to said they did not insure flight instruction.

Thanks again,
JDJ

 

[cwuflyboy]

I am buying a 150 right now and just got a quote on insurance for a 150 for $575 / yr 0 deductable, full coverage.

I have not been able to get a quote for flight instruction, basically anything commercial it is going to be hard to get insurance. One rumor I heard is that to cover a 150 for instrucing was $3,000 / yr. Another thing to keep in mind is that there are many flight schools that have had to close their doors because they cannot make enough money to cover the insurance costs.

 

[SPiper]

Last check for a Cherokee 180 was $6,700/year

 

[tarp]

Check the back of your magazines (Aopa, Flying, etc) for "independent" brokers that can get you to commercial insurance. It's my understanding that AOPA and Avemco no longer offer instructor insurance and many people who have existing coverage are only grandfathered. Many companies refuse to take the chance on us.

Single CFI, single airplane no longer makes economic sense - I got out when the Cherokee went to $5200 for flight instruction vs. $1100 for just personal ownership and use.

If you want to purchase a plane, I would suggest that you find a flying club and talk leaseback to them (same with FBO). You could be put on their "blanket" policies.

 

[TriDriver]

JDJ

You may be starting a business if you rent the plane and sell your services as an instructor.

I ran into problems a number of years ago when I tried to do what you have in mind. The FBO where I tied my plane down wouldn't let me do it. They had a contract with the airport for doing business off the ramp space they leased from the airport, and I could not subcontract business off their ramp. You couldn't even go out and do anything other than incidental maintenance on your plane on their ramp either, because they had the sole right to do that on their premises, and they were also worried about legal liability, of course.

Depending on the state you are operating in, you may have to collect sales tax on your services and the rental fee you charge for the plane. You may have to incorporate to get a state tax number to use as a company when you collect tax and pay your employees (yourself).

The states take a dim view of you doing business and not paying them their share.

It's not as easy as it should be!!!

As I think somebody said in the thread, it may be easiest to lease the plane to somebody who already has an established business.

TriDriver Bob