Partnership Insurance ?

[tankles]

Hello,  

I was contemplating the advantages ( as well as the disadvantages) of a partnership.  Is anyone aware of  insurance that would be available in case a partner were to lose their medical that would cover some or all of their buy-in cost. I realize that the share could be posted for sale under those circumstances but that may take a long time and perhaps would likely have to sell at a discount just to be done with it. Thanks for any input.

[Flymac]

Depends if you have a certain operating agreement, but to me the two items are not tied...a partner could lose their medical and not be able to fly the plane, but they can still own and be responsible for their half, buy-in, monthly fees, etc, but either way they are still responsible.  From there, its a matter of would they be working to get their medical back and enjoy the plane they own, or the two if you work out from there selling their half or buying them out.

[RobertGary1]

I've nerver heard of lost medical insurance for non commercial piloting. 

-Robert

[Bob - S50]

I've never heard of it either, but I thought I once heard that Lloyd's of London would insure anything.  However, I suspect the premiums would be more than you would collect.  Our monthly fees are between $200 and $250/month.  Even if it took a year to sell the share, that's less than $3000 that I'll be out.  We even have a clause in our agreement that says if the owner tries, but cannot sell their share within a specified amount of time, the other partners must either buy them out at full value or sell the plane and divide the proceeds.

[thinwing]

I think not financially feasible..like a 1/1 premium cause underwriters have no data to evaluate risk...Better to self insure this risk via contract

[teg916]

I haven't heard of insurance for something like this. It would be hard to quantify what dollar amount is lost if somebody loses a medical. Assuming two partners own 50% of the airplane, the value is not affected by the owners' medical status. If one partner loses his medical, his share can be sold, or the whole airplane can be sold. 

[carusoam]

Finding a suitable partner is challenging enough.  What happens when your medical fails you? Is your partner going to get paid?

A partner that comes with a guaranteed payment from an insurance company sounds interesting....

Realistically, as a single owner, there isn't a coverage for me in the event that I lose my medical and can't use the plane.  That would be nice...

The best way to handle this is to call your insurance company and ask.  You are probably going to need to call a few insurance brokers to find an answer that works.

This sounds like more of a life insurance, health insurance question.  How is your partner going to afford the plane to begin with? Are you signing a loan together?  The finance company is going to want to know some details like these....

If these are too personal, just ignore them.  Single ownership is so much easier in this case.

Best regards,

-a-

 

Edited February 20, 2017 by carusoam