Posted by: Christopher Turnbull | March 15, 2011

Risk…What Does It Really Cost?

It’s not uncommon for me to talk with pilots who think that an accident or claim will never happen to them.  There are even individuals who believe that they won’t survive the plane crash, therefore don’t have to worry about the aftereffects.  As a result, they cut corners on their insurance coverage, aircraft maintenance and/or training.  They push the envelope of common sense and what they’ve been trained to do.  Why not?  An accident will never happen to them.  And if it does, the insurance policy will solve everything.  Right?  We know that’s not the case…

Have you ever thought about all the things a person must deal with if an accident does occur?  For example, personal tragedies including severe, crippling injuries; Death … loss of a parent, spouse, child, friend, business partner, employee; You may have to complete police reports, NTSB reports, FAA reports; You may be subject to media scrutiny; lawsuits against you, your estate and/or your business; A damaged reputation; You and/or your family will have to deal with the insurance company on the claim for your aircraft and possibly other people’s property; You may not be able to work or earn an income if you’re injured; Potential action from OSHA or other regulatory entities; Fines; FAA action including suspension or loss of your pilot’s license.  You may even become uninsurable or the cost of insurance may go up significantly.  These are just a few examples of what we refer to as the “Total Cost of Risk”.

Don’t subject yourself, your family or your business to all the potential consequences and costs by cutting corners.  It’s not worth it.  The total cost is much greater than your insurance premium.  Fly and train like a pro.  In addition to training and maintenance, work with your aviation insurance specialist, attorney, CPA and other trusted advisors to map out a good risk reduction strategy as well as an emergency plan.

PS- Do you have a will?  Do you have life insurance?

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