Umbrella Liability policy that includes aviation-related incidents?

TangoWhiskey

TangoWhiskey

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Most insurance, financial and wealth advisors will suggest you carry an umbrella liability policy to protect yourself above the limits of your normal policies. And while I can find tons of umbrella policies that cover above the limits of your homeowners or auto policies, I can't find any that cover above and beyond for a claim resulting from bodily injury, personal property damage, or a civil lawsuit arising from an aviation accident you as the pilot are involved in.

How about y'all?
 
Mine is through USAA. They are on & off about offering it as I understand. Not sure what their current practice is.
 
Never been able to find one. If anyone has a source, that would be great.
 
Could not find an umbrella that would cover aviation related. You can often buy an aviation policy with increased limits though.
 
I just wrote to my aviation insurance broker for their thoughts on this. Will share what I find out.
 
Looks like the general consensus was correct. From my broker (Falcon, in Texas):

I am not aware of any general umbrella policies that do not exclude aviation, but we might be able to either increase your liability coverage on the aircraft policy or obtain a separate, Excess Liability policy which would add $1 or $2MM to your coverage. But if you were looking to purchase one umbrella type policy which would cover auto/home/aircraft, etc., I do not believe one is available.

Rough ballpark you are looking at about another $1,000 per policy term to add another $1MM to the coverage. Let me know if you would like to line up some firm numbers.
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Walboy said:
$1,000 to add $1MM? That seems way high. I pay $800ish for $2MM and that also includes hull insurance. I wouldn't think that liability is tied to the value of the airplane, but more to the insured's experience level.
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No kidding. I have London and $2MM it was less than $500 to add the extra Mil.
 
I've tried unsuccessfully to get an umbrella policy to cover aviation. My financial advisors are desperately trying to get me to give up this hobby (not going to happen).
 
All of our assets are going into a family limited partnership.

That protects them from all liability as long as I do what the attorney said to do. It is a long list of what to do, what not to do, and a pain... but it protects us.

It is not cheap. $6000 to set up and about $1500 per year to maintain. That is more than an umbrella would cost, but as it is shown in this thread, for aviation it cannot be found.
 
Even worse than not covering claims arising from aviation, my umbrella policy has the unusual statement that it is not available to pilots. Not sure what happens if I have a non-aviation claim.
 
texasag93 said:
All of our assets are going into a family limited partnership.

That protects them from all liability as long as I do what the attorney said to do. It is a long list of what to do, what not to do, and a pain... but it protects us.

It is not cheap. $6000 to set up and about $1500 per year to maintain. That is more than an umbrella would cost, but as it is shown in this thread, for aviation it cannot be found.
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A FLP can help, but keep in mind that depending on the particular circumstances the transfer of assets into a FLP can be unwound as fraudulent transfers (transfers made with the intent to hinder, delay or defraud your creditors). It's not necessarily an absolute protection (a fact estate planning lawyers tend to gloss over).
 
bradg33 said:
A FLP can help, but keep in mind that depending on the particular circumstances the transfer of assets into a FLP can be unwound as fraudulent transfers (transfers made with the intent to hinder, delay or defraud your creditors). It's not necessarily an absolute protection (a fact estate planning lawyers tend to gloss over).
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Like I said, it is a pain. Lots of rules. While I was forming it, I had to disclose all possible liabilities. It is a tool in the tool box, not a magic fix. Umbrella policies are similar, a tool.
 
My USAA umbrella policy specifically DOES NOT cover personal aviation.
 
I couldn't even get liability for the hangar not the plane in case somebody slip and fell. One mention of aviation or aircraft and most insurance companies run away.
 
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