Liability Insurance ?

Liability Insurance ?

<HTML>I am a private pilot and would like to use my plane for transportation from Nebraska to Indiana
I may go out there on business 8 or 10 times a year. I carry full coverage on the aircraft but my boss told me that his insurance would increase about 2000.00 per year if he would let me fly.
It would be much more convenient for me to fly myself. Does anyone know why my Boss would have to assume any liability if I were flying myself and no other company personal?</HTML>

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Re: Liability Insurance ?

<HTML>Im NOT an expert in the insurance field,but I suspect it has something to do with either of two situations(or a combination of both).
#1....Quite a few Insurance companys have an exclusion of coverage for an employee if he/she is killed in a "non scheduled air-carrier".Basically meaning that unless you are flying Commercial,you are on youre own.
#2.....Concievably IF you have an accident whilst on company business,either youre estate,and/or youre employer can be held liable for any damages.
I work for an Avionics Firm,and the VP has his own plane,however the President of the firm insists that when he does fly(for business purposes)he flys a regular scheduled carrier.
I imagine that the increased insurance premium youre boss is speaking of is liability coverage for the company....</HTML>

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<HTML>You've nailed it Alan.  I ran into this when I was Chief Pilot of an AMEX subsidiary.  Company personel had to fly either commercially, or on the company aircraft, never in their own aircraft.  The reason was that if they did crash into the "schoolyard" that all these hypothetical crashes occur,  then it would be a company employee travelling on company-required travel, that made the crash.  The company would be perceived as having had the employee make the trip, and therefore would be one of the named partners in the lawsuits.
Two ways around this:
1. Have your employer and his company added as "additional named insureds" in your aircraft insurance policy.  In this case, your employer may require higher liability limits than you ordinarily carry, which in turn will likely cost more.
2. Have an agreement drawn up stating that the employee will never travel on company business.  Then, before each trip, have the employee state in writing that he will be travelling on personal business to the destination, and only as a result of already being there and completely aside and unassociated with the company's interests,  volunteer to "call in" while there, during which time the employee will offer to take care of business, and CONCLUDE business, prior to beginning any further personal travels.  Admittedly, this second option has risks of  the corporate "veil" being penetrated, but company legal advisors may have a method of accomodating such offers.
  Generally, the additional liability is not worth the exposure for a company to allow employees to travel in personal aircraft simply because the employee enjoys doing so.  But if the employee would be willing to insulate and/or insure the company against such liability, then sometimes an arrangement can be made.  Good luck.   (Sorry that the company doesn't understand the fact that the employee is safer, and less likely to be involved in any accident in the airplane than the car.)  ;{</HTML>

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Re: Liability Insurance ?

<HTML>P.S.--Perhaps if a cost analysis were performed, showing that the company would incur lower costs, MORE than sufficient to offset any increased liability premiums, then the CEO might have a change of heart? 
Understand that I'm neither an attorney, nor an insurance agent in any state.  Anyone contemplating these actions should consult their own specialists.</HTML>

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