Umbrella policies

Let'sgoflying!

Let'sgoflying!

Touchdown! Greaser!
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Dave Taylor
If you have direct involvement with these, teach me about umbrellas, esp with regards aviation.
I do personal, recreation/business flying, and contract piloting - Pt91.
Do I need one, can I get one?
Yes I have assets to protect.
I have my own policies and I'm named insured on the contract planes, with good limits.
This came up when I asked my home insurance broker about an umbrella (apparently umbrellas must arise from auto policies), I asked him about if an umbrella could extend to my airplane - he was unable to find one that did.

Do you have one?
How did you decide it was needed?
How did you obtain it?
How did you decide what limits you needed?
 
Let'sgoflying! said:
Do you have one?
How did you decide it was needed?
How did you obtain it?
How did you decide what limits you needed?
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Yes
My lawyer friend told me I did.
Went to my insurance agent
Matched the value of attachable assets.

Unfortunately, Most (all?) umbrella policies exclude private aviation activities.
 
I have an umbrella policy from USAA. They made it absolutely clear that anything related to GA is not going to be covered by it. It's useful if you have assets in excess of what your normal liability coverages (homeowners, auto) have and covers you also in odd situations that don't fall under one of those.
 
I have had an umbrella for about 8 years. Every year I ask about GA coverage. Every year they laugh at me.
 
Let'sgoflying! said:
Do I need one, can I get one?
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I'm not sure how to quantify the need... we're all self-insured at SOME point. When I began flying in the '70's, there were a few umbrella policies that had overlooked the aviation exclusion. I think since then, everyone has gotten on board with excluding aviation. But, you can ask your aviation insurance broker for an excess liability policy, that may or may not come from the company providing your principal aircraft insurance (doesn't really matter who...) They're not terribly expensive. Hull coverage is the expensive part of aviation insurance.
 
My guy told me 20 plus years ago that if I’ve been flying for a long time and had the policy for a long time, what ever ”long time” means, they may cover it. But who knows until a claim is filed, which is never I hope. At this point in my life, I may put all my other assets into my wife’s name or trust, and the airplane in mine. Going to a lawyer to get professional advice.
 
I was in insurance as a second career…there are no aviation covered activities in any personal umbrella underwritten in the U.S. just does not exist at a price you want to pay.
 
I’m in the process of getting an umbrella policy,however my insurance company won’t cover the airplane.
 
Why do I think this is a time to get a good lawyer and build a trust. Then figure out the insurance position?
 
I believe the only way to do it and get much higher coverage is via commercial policies with commercial pilots. The issue is that some of the high limit policies on smaller airplanes require two commercial pilots - which would be cumbersome to qualify for. But once you operate a plane "commercially" with "pro pilots" then the set of rules, and policies for insurance are different.
 
Initial Fix said:
Why do I think this is a time to get a good lawyer and build a trust. Then figure out the insurance position?
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A trust is no panacea. If you have constructive access to it, it likely can be attached in a judgment. An irrevocable trust can put the assets out of reach, but any money from it headed your way can still be enjoined.
 
I carry a 2MM umbrella; it's a bit under $1000/yr. Almost a quarter of that is due to the semi's. It does exclude aviation, and I'm pretty certain they all do. I've had umbrellas with a couple different companies, all have been standalone policies, not attached to a homeowners policies. I currently have my home, farm, umbrella, and vehicles with the same company. The umbrella is far cheaper than increasing the limits on the farm & vehicle policies, and they won't write limits that high anyway.

I priced a 2MM limit on my airplane policy, but it was several thousand more than the standard 1MM limit.
 
Do any personal umbrella polices cover incidents arising from GA aviation business (where you are not a pilot). I.E. If I own a small business that leases planes or sells plane parts.
 
Samuel Seidel said:
Do any personal umbrella polices cover incidents arising from GA aviation business (where you are not a pilot). I.E. If I own a small business that leases planes or sells plane parts.
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Personal umbrella polices don’t cover any business activities, including home based businesses. You need a business umbrella policy for that and being aviation related is going to drive the premium.
 
Clip4 said:
Personal umbrella polices don’t cover any business activities, including home based businesses. You need a business umbrella policy for that and being aviation related is going to drive the premium.
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To clarify, if the business goes bankrupt and comes after the owner, the veil is pierced .
 
Samuel Seidel said:
To clarify, if the business goes bankrupt and comes after the owner, the veil is pierced .
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Cool, that doesn’t mean your personal umbrella policy will cover you for your business loss liability.

Here are other problems typically not covered by umbrella insurance:

  • Business losses
  • Criminal acts by you
  • Written or oral contracts
  • Intentional acts or injury by you
  • Damage due to nuclear radiation, war or terrorism
  • Communicable disease, such as a lawsuit against you for giving someone herpes
If you want insurance to protect against financial loss, become a farmer and buy crop insurance.
 
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