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Insurance and Exculpatory Contracts discussion

Question Description

Post your thorough and complete answers to all of the following topics.


Identify the appropriate purpose of use for an aircraft insurance policy to cover each of the following operations:

  • A private aircraft used for personal recreation and personal business travel
  • An aircraft used exclusively for flight training
  • A corporate business jet
  • Aircraft used by an air cargo company, such as FedEx or UPS
  • Aircraft used by a full-service FBO offering flight training, aircraft rental, and charter
  • Aircraft engaged in weather research flights in extreme weather conditions such as fully-developed thunderstorms and high-altitude wind shear


For each of the following events, indicate whether the event would cause you to consider its effect on your current aircraft insurance policy and explain why:

  • You have spent several thousand dollars to upgrade the aircraft’ s avionics.
  • You are going to allow another pilot to fly your aircraft.
  • You’ve been using the aircraft only for your own recreational, proficiency, and business travel, but have earned your flight instructor certificate and now want to also use the aircraft to start a flight instruction business.
  • You’ve been flying your aircraft only within the contiguous (“lower 48”) U.S. but are now planning flying it on a trip to Alaska.
  • You’ve paid off the loan you took out to purchase the aircraft.


Explain in detail: What is subrogation? As a renter pilot, how can you protect yourself against subrogation? How could the aircraft owner protect you, the renter pilot, against subrogation?


A middle school is interested in hosting a student indoor drone racing competition in its gymnasium as a feature of its focus on building excitement about science, technology, and math (STEM) learning. It appears that the school’s liability insurance would not cover the event. Analyze whether an exculpatory contract signed by all of the students competing in or observing the event could protect the school from liability in the event of injury.

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