Also Tweaking Insurance Plans For Light Sport Aircraft

Avemco Insurance Company President Jim Lauerman announced last week the company will soon offer new specialty insurance for certified flight instructors (CFIs.)

Avemco CFI will provide coverage for CFIs, not affiliated with flight school or FBO training programs, who wish to conduct flight training in their own aircraft. The policy will allow instruction of named pilots and will enable CFIs to have access to more affordable insurance than is currently available. It is designed for aircraft owners who are also instructors but whose instructing is incidental to their aircraft ownership.

"We all know that statistics for general aviation student starts and hours flown continue to be at extremely low levels. We believe one of the primary contributors to these low levels is the lack of experienced flight instructors. There are many CFIs out there who want to instruct but can't afford the insurance that's available now for FBO and flight school training programs. Avemco CFI is designed to address what CFIs who own their own aircraft have been asking us for -- customized liability coverage that's affordable and accessible so they can financially justify instructing in their own airplanes," Lauerman said.

"Being a direct underwriter, Avemco is uniquely positioned to offer this new product for CFIs -- an instructor can call us and add a student to his policy and then be instructing that student the same day. It's our intention to maximize our direct business model to make it easier for all our customers to fly more including instructors who want to teach more. General aviation will gain more experienced flight instructors and, hopefully, we will all see more pilots as a result," Lauerman said.

Avemco CFI will be available beginning by this year's AirVenture in Oshkosh, WI and joins the company's specialty product line that also includes offerings for light sport aircraft (LSAs), technically advanced aircraft (TAAs), homebuilts, and non-owned aircraft liability coverage. Hangar coverage and life insurance for pilots are also available through Avemco Insurance Agency.

Lauerman also announced Avemco is conducting an in-depth analysis of its light sport aircraft (LSA) underwriting standards, and is fine-tuning them to differentiate more effectively among various models. Dealer training, especially for transitioning pilots, parts availability and maintenance support are all critical factors in Avemco's LSA insurance underwriting and rate levels. Avemco is also visiting LSA manufacturing and dealer facilities to conduct this analysis and get a first-hand informational review.

"We are currently working closely with many LSA manufacturers and the Light Sport Aircraft Manufacturers Association (LAMA) to review and identify those LSAs that are being manufactured and sold with emphasis on increased initial instruction especially for pilots transitioning from traditional heavier GA aircraft. We've found that the light wing-loading of LSA's requires a greater emphasis on low speed directional control," Lauerman said. He noted that some LSA manufacturers have also identified this need and are already addressing it through increased time-in-type training for new owners. "Avemco will be adjusting its underwriting requirements for those models that meet or fall short of the additional training or that don't have the necessary parts and maintenance availability," Lauerman said.

Last summer, Avemco announced a rate reduction for TAAs including all Cirrus and Columbia models as well as Diamond's DA-42 Twin Star and select homebuilt aircraft. Avemco also broadened its coverage for pilots transitioning into newer high performance aircraft across all make and model categories. In addition, higher liability limits up to a one million combined single limit were made available to qualified aircraft and customers and higher property damage limits were made available to many homebuilt model owners.

These changes are on top of Avemco's recent broadening of liability coverage for bodily injury to family members of an insured pilot who are injured in a covered loss.

FMI: www.avemco.com