Are llc companies required to be insured aircraft [Expert Answers]

Last updated : Sept 12, 2022
Written by : Chang Feuerstein
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Are llc companies required to be insured aircraft

Do you need insurance for aircraft?

Although federal or state laws don't mandate aircraft insurance, you should have it if you're an aircraft owner. You'll need aircraft insurance that covers your plane while it's in the air, on the ground, and even in the hangar.

How does Aircraft insurance work?

Aircraft are insured on an “agreed value” basis. Premiums charged for physical damage to the aircraft are a percentage of the value on which you and the insurer agree. Knowing that, you may be tempted to insure to a value less than the true value of your aircraft to save some premium dollars.

What is aircraft hull insurance?

Aircraft hull insurance covers losses arising from the physical damage to aircraft hull as a result of various perils, including war and terrorism. Aircraft liability insurance covers operators of aircraft for third party liability.

How much does it cost to maintain a Cessna 150?

On average, it costs around $5,000 to $10,000 per year to own and fly a Cessna airplane. This includes both fixed and variable costs such as insurance, hangar space, maintenance, fuel, repairs, oil changes, landing fees, cleaning costs, and more.

Can you self insure an airplane?

Self-insure wherever possible. Consider fully self-insuring the airplane — carry liability coverage only, and accept the risk of having to pay for repairs to your airplane if it's damaged.

How much is commercial insurance on an airplane?

You can expect an annual premium of between $100 and $500, depending on the amount of coverage, your experience level, and the type of flying you do.

What are five types of insurance coverage particular to aviation?

  • Public liability insurance.
  • Passenger liability insurance.
  • Ground risk hull insurance not in motion.
  • Ground risk hull insurance in motion.
  • In-flight insurance.

Are commercial aircraft insured?

An aircraft must be insured before it can fly Operators of aircraft are required by law to have certain minimum levels of insurance. The precise level depends on the Maximum Take-Off Mass (MTOM) of the aircraft and on the number of passengers carried. Insurance must cover several separate areas.

What does non owned aircraft insurance cover?

Non-Owned Aircraft Liability insurance provides coverage in the event a corporation becomes legally liable for bodily injury (including passengers) and property damage to third parties as a result of a loss involving a corporation's or employee's use of a non-owned aircraft.

What two coverages are typically provided in aviation policies?

To protect themselves, businesses should buy aviation insurance. There are two main categories of coverage: aircraft liability insurance and hull insurance, which covers physical damage to the aircraft. They can be purchased together or separately, and in a variety of iterations.

Which of the following is correct about aircraft liability insurance?

Which of the following is correct about aircraft liability insurance? Aircraft liability coverage is written as a combined single limit of coverage and applies per occurrence. Policyholders may also purchase a sublimit of coverage that limits loss payments to a single person or passenger.

What does an aviation liability policy cover?

Bodily injury or property damage arising out of the ownership, maintenance, or use of aircraft, auto's, or watercraft that are owned, leased, or operated by the insured. Property damage to property you own, lease, or rent. Property damage to your product or the work you performed.

What is the cheapest plane to buy?

The Cessna 150 is the most affordable plane on the market. It's perfect for beginner pilots who are looking for an easy-to-fly aircraft. The Cessna 150 has a single-engine and can fly up to speeds of 124 miles per hour. It also has a service ceiling of 15,300 feet and a range of 350 miles.

How much does it cost to land a private plane at an airport?

Landing fees vary by airport and usually depend on the size and weight of the aircraft. Expect fees to be in the $100 to $500 range. Sometimes these fees are waived if your aircraft is refueling at the airport. The fees are used to maintain runways and airport buildings.

How much does it cost to fly a Cessna 172 per hour?

Cessna Skyhawk operating costs are typically broken down by hour and include, fuel, insurance, tie-down or hangar storage fees, regular maintenance inspections, and landing fees. Typical Cessna 172 Operating costs average between $100-$200 per hour depending on a wide range of variables.

Which type of aviation insurance is more expensive?

In-Flight Insurance: This is the most comprehensive and hence, the most expensive type of aircraft insurance policy. This aircraft insurance policy covers all types of damages sustained, irrespective of whether the aircraft is in motion or not.

What is aircraft damage liability?

A basic aircraft hull liability insurance policy protects against all physical loss or damage risks. This includes the following: Physical damage. Owners, operators, passengers, baggage and cargo carried on the aircraft. Medical coverage for passengers, pilots and crew members.

Why is general aviation so expensive?

Aircraft manufacturers frequently cite the cost and complexity of FAA certification as a reason for high retail costs and the relatively low degree of innovation in certified aircraft.

How much does it cost to insure a Cessna 172?

For qualified pilots the Cessna 172 Insurance Cost typically ranges between $150-$250 per year for $1,000,000 in Liability Only coverage. Adding hull coverage in the amount of $50,000, for example, increases the annual premium range to between $450-$1,100 total.

What is general aviation insurance?

Aviation insurance is insurance coverage geared specifically to the operation of aircraft and the risks involved in aviation.

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Are llc companies required to be insured aircraft

Comment by Dusty Shapiro

hello and welcome i'm rene bralehanty with flying proof and today's video is all about should we go llc or incorporated or should we not and some of the pros and cons with that we're also going to go over different accountants and lawyers to look for how to create and how to get your eia n if you plan to get an incorp or an llc we're going to use florida as an example for that and then we're going to talk about some resources as well and throughout it i'll kind of give some tidbits here and there i do want to add i am not a lawyer i am not an accountant so this video is not detailed this is to be like that person like me when i went okay i want to get an airplane should i put it under an llc or incorporate it or not and this is kind of a beginning guiding step to then find yourself to better people to talk to more details because every state and every person's story and what your uses for that airplane is different so i can't sit here and answer that for everybody unfortunately well alright let's get started in this video so what are your pros and cons pro to getting an in corp or an llc first off i want to mention i keep saying llc or incorporated it's very state dependent on which route you want to go with those so really talk to an accountant or a lawyer on those specifics most states you're going to find an llc is more behooving for the case of aircraft in florida they've recently made some changes in liability and taxes and so in corp when i was getting my last business flying proof incorporated i was actually guided to go the incorporate so what are the pros to getting an llc urn incorporated well there's a liability side to it taxes and also for the professional pilot so let me go a little more in detail so on the liability side let's say you're flying along and you decide you need to bail out of your aircraft did you successfully bail out parachute to the ground nobody's hurt but your airplane goes right into a cornfield and now the farmer wants to sue well instead of them suing rene rohanti they would be suing if my aircraft which was registered under flying proof they would be suing flying proof so it depends on what your entities are if the only thing flying proof had was this airplane then i don't have much to give up in a lawsuit where if it's my name it has everything to give up now i'm going to bounce into a con here depending on your state rules and depending on llc are incorporated and depending on actually what happens in a lot of cases in today's uh today's society you're actually going to find if you are the sole owner of that company it's not really going to give you any liability protection to be an incorp or an llc because they're going to go to the owner of that company which is me or you or any of that so actually your liability side of things where a lot of people go towards isn't always a protecting factor but there are still a few cases and depending on state rules it may still be a benefit for you to have an incorporeal llc for liability's sake so let's talk about taxes so a pro to having an incorporate llc for your taxes is you can actually write off some of your business expenses with the aircraft so if the aircraft is under an incorporate llc or you have an incorporate llc some expenses you could write off as business expenses this is considered a non-profit organization that you've created you founded then you can also have additional tax breaks as a non-profit along with a number of other things that could make give you tax breaks as well and that's where an accountant very knowledgeable with aircraft and your state is use is very useful all right fellow professional pilots out there let's have a little discussion on our additional pro that i incorporate llc has all right so i'm an airline pilot so i'm not allowed to do any other side flying unless it's approved so i got additional side flying approved it'd be the aerobatics doing upset and loss of control recovery instruction because that's an area of deficiency in our professional pilots so it was welcomed however nothing was in written of that approval most cases you're going to find this is just a verbal we're cool with it we're happy you're doing it and you move on so then you wonder in the back of your mind if something is to happen or were to happen am i actually covered or is the company going to come back and say oh look at her she's doing all the side flying and that's dangerous and everything all the faults on her so an additional way of protecting you as a professional pilot beyond just getting approval with your company is have your paychecks of that additional flying go to your incorporated all right so let's talk about the cons to having it in corp or an llc and your airplane being under that incorp an llc so if your airplane is under an incorporate llc you have to do a lot of additional paperwork along with additional costs as well for having that business so all businesses they have to have some kind of annual report of some sort which could also mean an annual fee as well sometimes it's just 25 a year it's not a big deal also though you're going to have to file if you're in corporate llc meet the requirements to have to pay taxes and if they do meet the requirements to pay taxes with the state that you have your incorporate llc under you're going to have to pay to file your taxes and whatever means that you plan to do that so that means additional paperwork and additional money with that so where it became a turning point for me is with my aircraft i have my name under it let's say this aircraft was registered under flying proof incorporated in order for me to fly it flying proof incorporated has to rent or lease the aircraft to me a lot of people just do this as one big statement that says okay there's a lease agreement for this person to fly flying proof incorporated aircraft dot dot dot but whenever i would use that aircraft or anyone else use that aircraft there has to be some kind of paperwork trail of all the flights that you've done how much was i paying either was it like a monthly at least at least type of thing was i paying by hour and you have to manage that and so when it comes to taxes all the income made from that is taxable depends on the state maybe some states that's not the case but for flying proof incorporated where it was registered at that was the case so this is where i learned this from talking to an aopa lawyer and accountant to get that information from now if you are going to be making money with the aircraft you have to have the aircraft under a business of some sort because you're making money if you're not going to be making money there is this hybrid option you could actually have the airplane registered under your name and then just have an incorporate llc separate it's not going to give you any liability protection but it can reduce some of your taxes and you can get work-related expenses still by doing this kind of i'm calling it a hybrid fashion and that's actually the route that i chose because that was the best route for my current use of the airplane in the state that my company was under and w

Thanks for your comment Dusty Shapiro, have a nice day.
- Chang Feuerstein, Staff Member

Comment by ferfelendC

Mr. Trinh Huyen lacks family and

Thanks ferfelendC your participation is very much appreciated
- Chang Feuerstein

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