To be an AMA Chartered Club or not?
As an AMA-chartered club, you enjoy many membership benefits, including comprehensive insurance coverage and higher "limits of liability" than is generally available in the standard insurance market. A close examination of the benefits of AMA liability insurance coverage for chartered clubs will help each club member appreciate this program. Here are some considerations:
- The AMA policy protects the club as an entity. Without entity coverage, the club’s assets may be exposed to foreclosure in the event of a serious injury in which the club was found liable and a judgment entered against the club, as well as individual members. Homeowners insurance may protect the individual members but not the club itself.
- The AMA policy provides coverage for club officers for their vicarious liability (liability as club officers for club activity even if not directly involved in an accident). While homeowners policies may provide some of this coverage, the AMA policy specifically names the officers and directors as insureds, and the club itself is an insured under the AMA policy.
- The AMA policy provides $2,500,000 limits. Most homeowners policies provide up to $300,000. A few members may have a personal umbrella that provides an additional $1,000,000 of coverage. Unfortunately, we have experienced accidents from all kinds and sizes of models, in all kinds of weather, at events large and small, and when flying alone. In a few cases, the injury resulted from a condition of the premises—covered by the AMA policy but probably not by homeowners insurance. Some of these injuries have resulted in liability settlements of up to $1,000,000. There is no way for a club or member to know that their activities will not result in a serious or even catastrophic claim.
- The AMA policy provides comprehensive coverage for site owners when a club is leasing or otherwise has access to a non-owned flying site. Virtually all site owners demand broad general liability coverage naming the site owner as an additional insured. Homeowners policies will not allow adding a site owner as an additional insured and would probably not offer sufficient limits or the broad coverage required.
So the cost of AMA insurance is a bargain. If the club could purchase a separate commercial general liability policy insuring the club and the site, the premium would most likely be well in excess of $1,000 and probably several thousand dollars, especially for the $2,500,000 limit provided by the AMA policy. In addition, few if any insurers will customize their coverage to meet the needs of the club, its officers and directors, and site owners.
In summary, the AMA liability insurance program meets a critical need for all or nearly all AMA clubs. It protects the club’s assets, the officers’ liability for injury or damage, and site owners when requested by the club. The extremely broad coverage, customized for the clubs and AMA members, exceeds any available on the open insurance marketplace.
— Carl P. Maroney
Transcribed from original scans by AI. Minor OCR errors may remain.
