AOPA Pilot Magazine - April 2014 - 104

NEWS & NOTES

INSURANCE SERVICES

INSURANCE FILE

Flying club insurance
SPRING WILL BE HERE BEFORE YOU KNOW IT, and now is the time
to set up that flying club. Most clubs have from three to 25 active
pilots per airplane, the aircraft are generally equity owned, and are
set up under a holding company. LLCs are the most common legal
entities and, in addition to the legal and tax advantages, registering an aircraft under an LLC also means the club will not have to
re-register every time the club membership changes.
I recommend that a club has sufficient insurance to meet the
requirements of the club member who needs the greatest protection. Clubs often find that such coverage limits are not easily
available, especially when the club includes lower-time pilots.
However, AOPA has recently developed an innovative means to
increase the protection of those individual club members needing
higher liability coverage limits. Also, the new club policy includes
very broad territorial limits; coverage is now available for some
multiengine aircraft; and, for the first time, "for profit" clubs can
obtain this same broad protection.
Flying club insurance rates are influenced by many factors,
but the most important include the make and model aircraft; the
insurance coverage limits needed (including aircraft value and
liability limits); the number of members per aircraft; the ratings,
experience, and claim experience of members; aircraft location
(hangared or tied down); and any expanded coverage needed (clubhouse or hangar protection, aviation event and contest coverage,
extra equipment and tools, etc.). Clubs operating retractable-gear
or high-performance aircraft, or needing significant expanded

BY BILL SNEAD

President,
AOPA Insurance Services

coverage (such as insurance protection for a club-owned private
airfield), should expect to pay higher insurance premiums.
The most commonly requested club quote is for three to four
pilots, with a Cessna 152, 172, or PA-28. For example: a Cessna
172 with a $50,000 hull value, hangared, and three pilots, with
the lowest time a 100-hour private pilot. Based on liability limits
of $1,000,000 each occurrence/$100,000 per passenger and full
ground and flight hull insurance, this new club would pay about
$818 the first year, or about $23 per member per month. If the club
adds a fourth partner the rate drops to $21 a month.
Bill Snead is an aviation insurance professional with more than 35
years of experience.

ANSWERS FOR PILOTS

TIME TO START A FLYING CLUB?
Find encouragement and practi-

selecting an aircraft, marketing

cal guidance on forming a flying

your club, understanding insur-

club with AOPA's online Guide to

ance, and more. Read more

Starting a Flying Club. It includes

about it in this month's Answers

detailed information on getting

for Pilots (www.aopa.org/Pilot-

started, from understanding FAA

Resources/Answers-for-Pilots.

guidance to setting a budget,

aspx).

CONTACT AOPA
AOPA FOUNDATION
ADDRESS CHANGE?

Send your new address and AOPA
membership number to AOPA:
421 Aviation Way
Frederick, Maryland 21701-4798
Fax: 301-695-2375
www.aopa.org
TOLL-FREE PILOT
INFORMATION CENTER

800-USA-AOPA (872-2672)
www.aopa.org

AOPA INSURANCESERVICES

AIR SAFETY INSTITUTE

AOPA AIRCRAFT PARTNERSHIP PROGRAM

AOPA CREDIT CARD PROGRAM

AOPA PILOT PROTECTION SERVICES

AOPA AIRCRAFT FINANCING

AOPA RENTAL CAR PROGRAM

800-955-9115
www.aopafoundation.org
800-638-3101
www.airsafetyinstitute.org
800-523-7666
www.aopa.org/creditcard
800-627-5263
www.aopafinance.com

800-622-AOPA (622-2672)
www.aopainsurance.org
800-622-AOPA (622-2672)
www.aopa.org/aircraftpartnership
800-USA-AOPA (872-2672)
www.aopa.org/pps
866-315-9155
www.aopa.org/cars

NEW EXTENDED PILOT INFORMATION CENTER HOURS

Now you can enjoy a whole new level of access to the team of aviation experts in our Pilot Information Center with our convenient
extended weekday hours. The Pilot Information Center is now available until 8 p.m. Eastern time every weekday. Call 800-USA-AOPA
(872-2672) Monday through Friday, 8:30 a.m. until 8 p.m. Eastern time, with your questions and our staff will be happy to assist you.
WEB Visit the website (www.aopa.org/aopapremier) to learn about upgrading to the AOPA Premier membership.

104 | AOPA PILOT April 2014

http://www.aopa.org/Pilot-Resources/Answers-for-Pilots.aspx http://www.aopa.org/Pilot-Resources/Answers-for-Pilots.aspx http://www.aopa.org/Pilot-Resources/Answers-for-Pilots.aspx http://www.aopafoundation.org http://www.aopainsurance.org http://www.airsafetyinstitute.org http://www.aopa.org/aircraftpartnership http://www.aopa.org http://www.aopa.org/creditcard http://www.aopa.org/pps http://www.aopa.org http://www.aopafinance.com http://www.aopa.org/cars http://www.aopa.org/aopapremier

AOPA Pilot Magazine - April 2014

Table of Contents for the Digital Edition of AOPA Pilot Magazine - April 2014