Contractor Insurance?

[drkrider]

WCB coverage aside,

 

A few posts back it was stated that the AMO assumes all the liability if they give an Engineer an ACA. I do agree that the AMO would shoulder a large portion of the liability, but wouldn't a contractor also get a large portion of the liability since they are a company that is representing them selves as licensed and qualified to do the work?

 

Is it any different then hiring a licensed electrician? If some thing did burns your house down they are liable that's why they carry insurance.

 

 

Just trying to get some discussion going.

 

Sean

[RTR]

WCB coverage aside,

 

A few posts back it was stated that the AMO assumes all the liability if they give an Engineer an ACA. I do agree that the AMO would shoulder a large portion of the liability, but wouldn't a contractor also get a large portion of the liability since they are a company that is representing them selves as licensed and qualified to do the work?

 

Is it any different then hiring a licensed electrician? If some thing did burns your house down they are liable that's why they carry insurance.

 

 

Just trying to get some discussion going.

 

Sean

 

 

The difference is, you are not in the business of carrying out electrical work.

 

It seems to me that once you, as an AMO, determine that an AME's qualifications meet your requirements and you hire them to perform maintenance on your aircraft, then they should be included on your insurance.

 

I see no difference in that regard between a full time employee or a short term contract. In fact, as a full time employee if my company wouldn't include coverage for another AME working beside me who was contracted, I would have a significant doubt as to the level of my own coverage.

 

With all that being said, today we work in a highly litigious industry built on the need to care and feed all the new Lawyers that spawn. Looks like a good time to go shopping for personal liability insurance. And do you know who will end up paying for that anyway? I will give you a hint...the operator. Through higher contract rates.

 

At any rate, do your work by the book boys and girls, let the aircraft manufacture and TC hold the liability.

 

And check your coverage.

 

cheers,

RTR

[helidude]

Don't assume the operator you work for will automatically cover you in the event of a lawsuit. If you are a contractor (You invoice under an incorporated or limited company), you are not automatically covered by their insurance company.

I was required to attend an examination for discovery a few years ago for a lawsuit relating to a 2003 accident. One of our engineers and my self were contractors at the time of the accident and about 2 hours in the examination, the defendant's lawyer found out that we were contractors and he got a big grin on his face and made a comment to the effect that we were going to be named in the lawsuit as well.

The case was settled out of court before this could happen but our contract engineer still had to spend many thousands of dollars for legal representation for an examination of his own. Our company paid his expenses anyways but the point is, we were under no legal obligation to do so. Let me tell you, those lawyers are good at making you feel like a piece of shiiiiiiite! It will make you want to quit aviation and go clean toilets for a living!

I'm no legal expert but the way our lawyers explained it goes something like this: As a contractor, you're on your own unless you have a written agreement with your operators' insurance company. If you are named as a defendant weather you are guilty or not of any kind of negligence, your personal assets are probably not going to be affected but you still have to get a lawyer to defend yourself. That's expensive.

[RTR]

Good post helidude.

 

I didn't intend to imply that you should assume that you were covered under the operators insurance. Always get it in writing that you are in fact listed on the insurance policy.

 

At any rate, anytime an insurance company ends up paying out, there will be lawsuits.

 

Play safe kids.

 

RTR

[Guest Angry Egg Driver]

Everyone wants to be a contract pilot or engineer because they think thats where the money is.But no one wants the responsibility of running their own business?If you want to make the big bucks there are responsibilities that come with it.

[Batiskaf]

It is not about big bucks but rather about who is responsible for what. It is to the benefit of everyone, contractors (Operator or AMO) and sub-contractors (Pilots or AME) to have a clear understanding in terms of Insurances (liability, WCB etc.). One cannot "assume" the other is paying for it without having a written agreement that will protect (to some degree) everyone in case of...

No one needs to make it to unclear for the benefit and pleasure of the lawyers.

 

Skaf

[PIC]

I never thought this would happen to me...

I suddenly lost my medical last summer and fortunately, happened to be a full-time employee. I had been a contract pilot for most of the past 15 years before that (read no benefits).

Luckily, I had access to disability benefits during this ordeal. I don't know what would have happened without this insurance. Maybe we would have had to sell the house?

So, if you are a contractor, do you have personal insurance? Not only liability but disability?

Don't believe that this cannot happen to you. It can.

Fly safe,

PIC

[apell]

Hi i am new to this forum, as an aviation insurance broker, i can say their are some differences when requesting to be added as an additional insured vs. named insured, some of which you do not want to be responsible for.

WCB is of course entirely different than buying your own liability insurance policy.

I would be happy to help anybody out, as we have some products that address these issues. I can be reached by email.

Thanks.

[Duke222]

Hi i am new to this forum, as an aviation insurance broker, i can say their are some differences when requesting to be added as an additional insured vs. named insured, some of which you do not want to be responsible for.

WCB is of course entirely different than buying your own liability insurance policy.

I would be happy to help anybody out, as we have some products that address these issues. I can be reached by email.

Thanks.

 

Can you post your email address, or pm me?