Insurance Questions

Our 74 Archer is owned by a NJ Not-For-Profit Corporation that each of the
four partners owns a share in. Our insurance has the Corporation as the
named insured, and the four partners are named as the sole pilots, although
we do have an open pilot clause to cover flight by instructors, mechanics,
etc.

We have a $ million liability coverage, but it is not clear if we as
individual pilots are covered for liability or if only the Corporation is
covered. I've studied the policy in painful detail and I can't see anywhere
that we are insured. I seriously doubt that, if I was PIC and had an
accident where someone else was injured, the fact that the plane is owned by
a Corporation would provide much of a shield for my personal liability.
Furthermore, I don't see how I am protected from the insurer suing me for
loss of the airplane (subrogation) should I be flying and have an accident
that's my fault.

Thoughts?

We also have an exclusion to the coverage for damage or loss that says the
following:

THIS POLICY DOES NOT APPLY:



8. UNDER COVERAGES F & G (Damage to, or loss of, the aircraft when in
motion, and not in motion, respectively)



(C) TO LOSS OR DAMAGE DUE AND CONFINED TO WEAR AND TEAR,
DETERIORATION, FREEZING, MECHANICAL, HYDRAULIC, PNEUMATIC, STRUCTURAL OR
ELECTRICAL BREAKDOWN OR FAILURE, INCLUDING ANY SUCH LOSS OR DAMAGE CAUSED IN
WHOLE OR IN PART BY A DEFECTIVE PRODUCT OR THE NEGLIGENT ACT OR OMISSION OF
ANY PERSON OR ENTITY. FOR PURPOSES OF THIS EXCLUSION, DAMAGE CAUSED BY THE
BREAKDOWN, FAILURE OR MALFUNCTION OF ANY INTERNAL ENGINE COMPONENT, OR ANY
ACCESSORY, COMPONENT OF PART THAT IS ATTACHED TO THE ENGINE, IS CONSIDERED A
MECHANICAL BREAKDOWN OF THE ENTIRE ENGINE AND IS EXCLUDED.


I read this as providing the insurer a loophole whereby, should I total the
airplane in an emergency landing caused by an engine failure, the insurer
does not have to pay for the engine replacement. Am I reading this
correctly?

--
Bob (Chief Pilot, White Knuckle Airways)