A WAIVER OF LIABILITY IS ALL I NEED



Fact or Myth: I will have all my passengers sign a release prior to riding on my aircraft. This will eliminate the need for passenger liability and will significantly reduce the cost of my insurance.


This is a myth. Although I have heard some attorneys occasionally recommend having a waiver signed as a substitute for carrying passenger liability, this is not a sound theory. Should someone be injured while riding on your aircraft, regardless of your passenger contract, you will most likely be sued. Without passenger liability, you will have to pay your defense costs out of your pocket. Keep in mind, most aircraft liability policies pay for defense outside (in addition to) the liability limit that you purchase.


Subrogation simply means that the insurance company is given the same rights of recovery that the insured possessed against any third parties found to be responsible for the loss. In order to actually recoup its loss payment, the insurance company must prove the liability of the third party, and that the negligent third party has the financial ability to pay for the losses they caused. If a Waiver of Subrogation is issued, the insured or insurance company is waiving its right to try and recover any loss payments for which the negligent third party may be responsible.


Subrogation simply means that the insurance company is given the same rights of recovery that the insured possessed against any third parties found to be responsible for the loss. In order to actually recoup its loss payment, the insurance company must prove the liability of the third party, and that the negligent third party has the financial ability to pay for the losses they caused. If a Waiver of Subrogation is issued, the insured or insurance company is waiving its right to try and recover any loss payments for which the negligent third party may be responsible.


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