AVEMCO® ANNOUNCES EXPANSIONS IN SPECIALTY INSURANCE LINE
Company to Offer Special Coverage for CFIs and Fine-tuning of Coverage for LSAs
LAKELAND, FL (April 11, 2008) . . .
Avemco Insurance Company President Jim Lauerman announced today at the
Sun-n-Fun Airshow that Avemco will be offering 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 broad 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 that 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. In an unprecedented step for general aviation
insurance, Avemco is 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.
Avemco Insurance Company, a leading pleasure and business general aviation insurer
in the United States, has been insuring planes and pilots since 1961. Headquartered
in Frederick, Maryland, Avemco is rated A+ (Superior) by A. M. Best Company and
AA (Very Strong) by Standard & Poor’s. Avemco is a subsidiary of HCC Insurance
Holdings, Inc. (NYSE: HCC)
a leading international specialty insurance group with assets of nearly $8.1 billion.
Contact: Lauretta Godbey, Vice President, Marketing
Avemco Insurance Company
Telephone: 301/694-4207
www.avemco.com.
