Liability Insurance question

I was talking to several A&Ps that said they can't continue to do service because they can't afford to pay for one or two million dollars of liability insurance. I can understand that. And there seems to be a lot of people in that boat.

This would obviously be a question for the insurance department, but from them I expect a canned technical answer. What is the knowledge on the field? Is there some kind of group-umbrella policy that these guys can get that will cover them affordably? Some work as individuals, some as an LLC.

What does an A&P liability police typically cost?

2 Replies
1521 Posts

Working as an LLC provides no protection from liability for your own actions, so using an LLC versus as an individual adds costs without shielding you from liability.  It's only useful for a mechanic if they employ others in the shop, in which case incorporation of the business probably provides better protection and tax advantages.


Any kind of insurance seems to be pricey right now.  I know you mentioned insurance providers, however I think having a conversation with them will lay out the options.  AOPA's strategic partner is Assured Partners Aerospace.  They work with many different providers so they should be able to give you a good idea of the marketplace.  Also, you might try reaching out to the PAMA as well to get their perspective on the issue.