As Seen In “South Florida Business Aviation” the SFBAA official news letter.

What is the cost of Insurance?

Better yet, what is the cost of not having the proper insurance? Our total cost for all of our insurance is around $35K. That provides us with liability insurance of $5MM, $1MM of auto and workers comp coverage as required by the state. The total bill is 8-10% of our total revenue for the year depending on sales. This is what it takes to properly protect your investment. It is also close to minimum premiums for the coverage amount required by airports and FBO insurance agencies. When evaluating vendors keep in mind their business operations as well as quality of work.

Does your vendor have the insurance to cover the cost of a repair? A detailer has more exposure than damaging paint. What is the cost to repair a hole in the pressure vessel due to a lift hitting your aircraft? In addition, what is the cost of loss of aircraft value and loss of use while the repair is being completed? Finally, what is the long term impact and cost of your insurance company having to pay for the loss if your vendor does not have the proper coverage?

Jerry Gemma

Pro Guard.