Contractor Insurance?

[drkrider]

I'd like to throw out a question about insurance for contract Pilots/Engineers.

 

Operators are required by law and by our customers to have a certain amount of liability insurance coverage.

 

Is there any company's requiring that contractors have their own liability insurance? Do any of you contractors carry insurance?

 

I'm asking out of curiosity and I'm referring to true contractors who bill through their own company not short term / seasonal employees.

 

I realize I might be opening a can of worms here, but I think it might be a good discussion.

 

 

Sean

[skidsup]

I've been contracting for almost ten years. I've never carried my own liability insurance.

I always ask and get some kind of assurance that I am listed on a companies insurance policy.

 

I think the can of worms would be if insurers started coming after individual pilots for damages.

 

You think it's hard to get good pilots now just see what happens if a company is known for hanging you out to dry!!

 

 

Gross negligence is another story though, you could be on your own.

[gasguy]

You have asked a question that every contract pilot should ask. Insurance only covers the named insured, and that is the person or company that pays the premium. If the named insured and the insurance company agrees, then an additional named insured(s) (pilot, customer, lien holder etc) can be listed on the policy. Do not confuse this with being a named pilot. The two terms are very different. A named pilot is authorized by the insurance company to fly the aircraft and the company will reimburse the named insured in case of a loss. An open pilot warranty is the minimum experience requirements to keep the policy in force and the named insured covered.

This is a very short note on a very complex subject, but as a contract pilot you are on your own in the event of an accident, unless you are an additional named insured.

[skidsup]

Good Reply! I guess I will specifically ask to be: 'a named insured'.

 

Thanks

[drkrider]

Thanks GasGuy,

 

This is a subject that has come up a more then a few times over the last few years.

 

I'm sure like anything to do with insurance it is a complicated matter.

 

Sean

[zeroairspeed]

I just started as a contractor. i agree it should all be in writing to cover yourself.

but the little explaination i got was that it doesnt matter where the company hires from, full time or contract. If you are signing with there AMO. that is who is liable.

They should of done there checks and you do there entry exams and paperwork for the MCM/MPM.

[PIC]

I haven't written anything in this forum in a long time but this is worth mentioning. Not quite the same subject but close.

 

I have had a corporation for 14 years (in BC) and never carried my own company WCB (Work Safe BC). I always made sure that the helicopter company I was flying for covered me. But that recently changed. If you have a company, you must sign up and contribute to WCB. Plain and simple. If you don't, they will eventually catch up to you and you'll then have to pay premiums, including back pay. It's a new thing, the Federal Government now shares info with WCB. I got a notice in the mail this spring and fortunately, my company is now dormant and soon to be closed so they left me alone. But beware.

 

Also, the WCB lady I spoke said that despite the helicopter company saying that I was covered by their insurance, she said that if there had been a claim, I wouldn't have been covered.

 

Ok, back to insurance (which I never carried by the way - foolish of me!)

 

Cheers!

[Helilog56]

After 20+ years as working as a contractor in the industry, I switched to full time and part time employee position with my customers.

 

After audits by WCB, Revenue Canada, meeting local Business license requirements, accountant costs, etc. (on more than a couple of occasions), I called it quits !!!

 

The costs, headaches, time spent (book keeping) and sorting out numerous insurance issues as mentioned here, hardly made it worth while as rules changed !

 

My life as an employee these days, makes for much better time off and no hassle..... !!!!

 

 

Ahhhhhhh......time off :up:

[RonnyRotor]

As I understand it. It is the company's responibility that hires you as a contractor to ensure that you are covered for WCB... UNLESS you have more than just yourself as an employee of your company...in fact WCB will not accept registration unless you have at least one employee.... at that point YOU are required to register and report and pay premiums for coverage. You should have it included in your contract agreement that you are covered for WCB in all jurisdictions that you will be working in. That is my experience in 29 of 32 years of contracting as a pilot an have been audited 3 times, not without some penalties but nothing serious and I continue as a contractor.

[Batiskaf]

As I understand it. It is the company's responibility that hires you as a contractor to ensure that you are covered for WCB... UNLESS you have more than just yourself as an employee of your company...in fact WCB will not accept registration unless you have at least one employee.... at that point YOU are required to register and report and pay premiums for coverage. You should have it included in your contract agreement that you are covered for WCB in all jurisdictions that you will be working in. That is my experience in 29 of 32 years of contracting as a pilot an have been audited 3 times, not without some penalties but nothing serious and I continue as a contractor.

 

the BC Workers' Compensation Act states the following:

 

s.51(1) "Where work...is performed under subcontract, both the contractor and the subcontractor are liable for the amount of the assessments in respect of the work; and the assessments may be levied on and collected from either, or partly from each...but..the subcontractor is...primarily liable for the assessments..."

 

In BC it is mandatory to be registered with WCB even if your assessment is $0.

In Alberta you need a minimum to be eligible and that minimum will cost around $200 in remittance.

 

The best way for contract pilots is to establish a written agreement with the operator(s) clarifying who is responsible for WCB payment based on Pilot pay.

 

Skaf.