"Dylan Smith" wrote in message
...
On 2006-09-25, Bob Gardner wrote:
Because the FBO's insurance protects him, not you? If you cause damage to
his airplane, his insurance will cover his costs and then come after you.

I can't be the only one to think insurance is a scam. The insurance
companies get it both ways - the FBO gets "insured", and then each
renter has to insure against the FBO's insurance company litigating!

I guess that depends on what the coverage costs. Insurance companies insure
against a specific risk. In the case of the FBO, assuming the FBO has not
agreed to hold the renter harmless, then if they had no insurance they would
still have the right to go after the renter.

But there is considerable expense and risk associated with that. So most
FBOs choose instead to consolidate that risk into an insurance policy.

Assuming the insurance company is charging a premium appropriate to coverage
of that risk, rather than appropriate to the actual risk of an airplane
being flown hundreds of hours a year by the average rental pilot, I see
nothing wrong with the strategy.

And for what it's worth, whether you think it's a scam or not, the scenario
is not unique to aviation insurance.

Really, the FBO's insurance isn't aircraft insurance, it's legal cover
because they aren't really covering the aircraft as such - they are
covering the legal action to sue the renter.

If you understand that, then why do you say the coverage is a scam? Two
different policies, taken out by two different individuals, to cover two
entirely different activities.

Pete