Know What is Insured; Not What You Think is Insured
I wrote a piece a few years ago about a fatal RV4 accident that involved two great persons: The pilot, my stepson, and a family friend. The best news about accidents; they always happen to someone else. Unfortunately, my aircraft was involved, so even though that accident happened to someone else, I was involved. Aside from the emotional scars, the truth about insurance became a reality. Tell me this is not so, was run up the flag pole to the top EAA lawyers. I was informed that what it says is not what it means by two leading EAA attorneys.
Although your policy may state that your Vans RV is a 2-place aircraft, the pilot does not count on the insurance policy; only the 2nd guy or gal is insured. What the policy says is not what it means. The pilot, as per the insurance industry (AVEMCO in this case), is not an occupant in that 2-place airplane and is not insured. Nowhere in any fine print does it say this. I have had comments posted that go so far as to say that everyone knows that the pilot is not an occupant, so I should have known. Only, I did not purchase the policy. My Dad did. He is a very brilliant man who also did not know what occupant really means. So have your own personal accident policy and never allow anyone to fly your aircraft without reviewing that persons personal accident policy. And, yes, my stepson, the pilot, had a personal accident policy, but in the fine print, flying was excluded. Therefore, his loss had no insurance. Bob was 21 with no children, but a great Mom, who did not need or want a dime except to rewind the clock. What if Bob was a Dad with a family?
Also, never register the aircraft in your name. You are liable and every asset you have is attorney bait. A simple LLC and a separate expense account purchase the greatest insurance policy you can imagine. If this sounds complex, remember, accidents always happen to the other guy doing something you would never do; so why bother. If that is the case, why waste money on insurance to begin with? My insurance policy did pay for the hull loss; and the policy did pay a small sum to the passenger's family; but the LLC became the greatest friend I had. Several of their attorneys looked, but chose not to participate because the LLC was legitimate and I did nothing to contribute to the accident through negligence or recklessness.
