Part 91 Flight Department Insurance Ques

[dpilot_citation]

I’m looking for some comparisons on what insurance cost should be. We have a 1992 Citation C-560 with a value of 5 mil, we also carry 100 mil in liability and have a policy with a non deductible clause. It seems what we are paying is quite high but maybe it is just me.

Also has anyone been able to get discounts based on having a good SOP and continuing education? Maybe…an in-house, monthly training program, reviewing operations or safety?

Any thoughts or figures would be greatly appreciated!

Thanks..Dpilot_Citation

 

[hogdriver00]

Survey or audit

You should be able to get a Safety survey or audit from your Ins. Co. They look at Ops manauls, safety programs, training, etc. It might help to get a better rate assuming you do well. Even if you don't get a discount the process well help to identify problem areas if there are any.

 

[cvsfly]

It has been getting ridiculously expensive over the last few years, especially after 9/11. Carring $100 mil liability will put the premimum way up there. Only 2 or 3 underwriters doing $100 mil. We originally had $100 mil before 9/11 and had to drop to $50 mil. For comparison sake we are a 135 (70%) and 91 (30%) on a 1996 BE-200 - $50 mil liab/$2 mil hull, recently changed brokers and negotiated strongly with new underwriter and pay about $44,000. The comm. policy adds about $10 - 14,000. I hear many bigger operators are self-insuring.

 

[h25b]

dpilot_citation,

What kind of experience levels are your crews... Total time, time in type, and so on can get in to the equation. I would probably look at the audit deal like hogdriver eluded to. Your profile states somewhere between 2000-3000 tt. For some reason I believe I've heard 5000 to be some sort of magic number for insurance purposes. (not sure though)

 

[KeroseneSnorter]

550 single pilot, part 91, 4 mil hull, a touch under 40 k.

Had quotes as high as 55 k, but if you work it a little and have a pretty high time crew it can be had cheaper.

We take a 9 grand hit for single pilot ops.

5000 tt and 1000 jet seems to be the break for getting a better rate, under that time the rates go up a lot.

 

[501261]

You might seriously consider getting less insurance. $5M on the hull, for 92' 560??? I'd get the old Vref out and see if your really need $5M. $100M in liability is nice, but do you really need it? Things to consider, we dropped to only carry $50M in liability after 9/11 on our 92' 560 and it's $42K a year. We also changed brokers and insurance carriers last year.

 

[dpilot_citation]

Thanks for the replies. Actually we are carrying 6 mil, on a 92 C-560 and 100 mil liab. They have it divided between six different carriers. I feel top dollar for this aircraft would be 4.5 mil. I agree 100mil is a lot of liability. We have been with the same underwriter for 22 years no claims. Our cost is over 58k.

Two Captains
1. 17,000 TT, 5000 in Citations, 69 years old
2. 2800 TT, 1100 in Citations, 51 years old

I’m going to work with the insurance company to see what we can do. I have almost a year before we get our next policy. I’m trying to work to save the company money with out pissing off the CP.

I finally took the plane out for the first time in 22 years with out the CP on board. We went to Mexico. We did our homework and went without a handler, and the boss was really pleased.

Again thanks, to all who has given advice on this and other questions in the past.

Dpilot_Citation