LSCFI insurance

[Randy]

I have purchased an airplane for Light Sport flight instruction and am going for my LSCFI test Friday. I am having trouble finding an insurance company willing to write commercial insurance for a flight instructor with one airplane (Ercoupe). I have a private license, Instrument rating, 3rd class med, and do not have a commercial rating.
Are there insurance companies that will write insurance under these criteria.
I have a company willing to cover other instructors but not myself. What company should I check with?
Randy Thompson

[drseti]

I am having trouble finding an insurance company willing to write commercial insurance for a flight instructor with one airplane

Randy, I am in the process of setting up a one plane, one instructor flight school, and I ran into the same thing. My regular acft insurance broker shopped the market and got me a quote, but it came in amazingly high (over $7500/yr). This for a COMML/CFII with over 3500 hours and more than 37 years teaching experience! So, if you plan to instruct, you'd better do enough hours to cover your insurance costs. Good luck!

If you need the contact info for my ins broker, feel free to PM me.

Safe skies,
Paul

[Rtrhead]

$7500 is way too high. We started a school with a Remos for $6500 a year and we are $1000 higher than another startup I know with the same plane, because my broker neglected to go to AIG so I got stuck with a specialty market that was more expensive. As of 6 months ago, AIG was writing insurance for new flight schools using sport planes. What aircraft were you guys trying to insure? I know Remos and Gobosh are in the $5-6k range annually for instruction and rental insurance.

[drseti]

$7500 is way too high.

I thought so, too (though that's the second quote my agent got me -- the first one was higher!)

my broker neglected to go to AIG so I got stuck with a specialty market that was more expensive.

I've just forwarded your post to my agent, with a request that he check AIG. Thanks for the tip.

What aircraft were you guys trying to insure?

A Gobosh 700S. Insurance on my previous trainer (a Cessna 172H) was just over $5k/yr, so I hope I can get the costs down for the Gobosh.

Safe skies,
Paul

[AZPilot]

Paul, that doesn't sound that bad considering that
the LSA probably has 4 times the hull value of the
172H.

Also I just read the Dan Johnson blog that had an interview with the underwriter at Avemco. He stated that the LSA accident rate is still about 2x than the part 23 rate, however it has been improving over the last 2 years.

He also cited the cost of repairing the much higher value airframe.

3 years ago, we were paying about $3600 for a 152, and in the neighborhood of $14,400 on a new 172SP.

One of the things all potential flight school/rental operations need to do is to put together a written "rental agreement" with "pilot minimums" and negotiate with the underwriter. Sometimes you can do little things to help the bottom line, like requiring time for checkouts, shorter currency periods than required by FAR.

Also specific BFR/checkout requirements with Instructor and Student/Renter signing off on the fact that everyone is happy with the outcome.

[drseti]

Paul, that doesn't sound that bad considering that
the LSA probably has 4 times the hull value of the
172H.

As it turns out, I did better than expected. The deal on the Gobosh didn't go through, so I ended up buying a used SportStar Plus. I got reasonable coverage ($1M/100k liability, 85k hull) for $5100/yr thru the EAA insurance program. Bob Mackey not only got me a good rate, but he was very prompt and responsive. I couldn't have asked for better service.