Running Head: BUSINESS LETTER 1

BUSINESS LETTER

NAME

INSTITUTION
BUSINESS LETTER 2

Sender Address

Date

Recipient Address

Dear Mr. Mike:

I hope this finds you well. I have evaluated the various business insurances that might be

of interest to you in meeting your needs. I have listed the various coverage with a brief

explanation of what each cover. There are also a few endorsements that I would

recommend for you as a CFI that might help you. Explanations on what they entail are also

included in the documents attached to the letter. For further clarification and

understanding, you can visit the links that I have included as well. I hope you will find this

useful.

In case you need any clarifications or help, you can reach our help desk through the

addresses provided and we shall be glad to assist.

I look forward to hearing from you.

Sincerely, 

Name

Post (i.e. secretary)

BUSINESS LETTER 3

Mike is excited after becoming a new CFI and he's prompted to purchase a personal

aircraft so as to begin instructing as well as renting it. He's lent $50,000 by his dad to finance the

aircraft and rents at Provo Municipal Airport not only to have a little business lobby but also

hangar the craft as well as well as conducting classroom instructions. He also intends to carry out

aerial tours and taking pictures and therefore, he gets a camera pot installed. He intends to

instruct potential students in their own aircraft as well as his own. Being an instructor will

require the application of various insurance covers as discussed below.

Airport Liability and Premises Liability also called slip, trip, and fall insurance covers a

customer or a guest in case they are hurt. He will also have Provo Municipal airport insured

under this policy. This policy covers premises liability, products and completed operations,

personal injury liability, advertising liability, host liquor liability under CGL policy as well as

hangar keepers’ coverage under FBO policy.

Aircraft Liability which normally covers the insured from claims of property damage

and injuries or death of public and passengers. This insurance, however, is limited to per persons

injured and also per occurrence.

Hull Insurance which is issued with a deductible can be in various ways such as taxi

excluded ground coverage also called run up coverage or ground coverage with taxi included or
BUSINESS LETTER 4

full flight. It normally covers the aircraft and its permanently attached components such as the

propeller and engine though they are removable for maintenance purposes.

Ground Hangar keepers Legal Liability is also a recommendable policy cover as it

covers damages to property that might occur due to the negligence of the people or under whose

the property is under custody, care, and control.

Being a camera man and having a passion for aerial photography, it is of great importance

that you get a Tools & Equipment Floater-Off Premises. This would be necessary since it covers

mobile equipment stored on premises, that are in transit or that are temporarily at job sites. This

would cover the camera as well as any other equipment.

A Building and Content is necessary for the rented premises to use as a hangar as well as the

office. This is because the coverage will have the whole building secured as well as the contents

of the building. This would guarantee compensation in case of fire outbreaks, flooding as a result

of faulty plumbing or collapsing of the premises. However, the building and contents can be

covered differently from each other. This could happen in the case where the contents in the

premises are of higher value than the building.

Pollution Legal Liability covers both on-and-off-site pollutions from unknown sources

with body injury, damaged properties and cleanup costs included. It, however, doesn't cover costs

incurred during an on-going or existing cleanup as well as known pollutions.

One would need to cover the insured for loss or damage to non-owned aircraft under the care,

custody or even control of the insured. This is necessary if Mike will instruct the potential

students using their own aircraft.

BUSINESS LETTER 5

Read more on http://www.avquestinsurance.com/resources/aviation-insurance-glossary/

and http://www.aircapitalins.com/FBO-AviationProperty.html

Other than the policies and insurance coverage, you need to special endorsements as well

suitable for him being a CFI.

i. Flight Instructor’s Liability Coverage which covers liability the losses that arise from a

pilot’s teaching activities.

ii. Non-owned Hull Liability which normally has the insured covered for their negligence

while operating a non-owned aircraft causing damage.

iii. Pollution Liability Coverage which covers liabilities against incidents of cost or expense

as a result of accidental release of pollutants.

iv. Guest Control Settlement which offers a pre-set loss or injury payment to specified body

parts or limbs which might occur in an aviation related accident. This coverage is

however limited to if the injured person agrees to forego any right to file a lawsuit for the

damages, loss or injury.

http://www.roughnotes.com/onlinedemo/pfm/300/330_0403.HTM and

https://avemco.com/cfiowned/endorsement.aspx

However, some coverage are excluded from Mike’s need which are;

i. Workers Comp

ii. Professional Liability

iii. Transport Insurance

iv. Storage Tank Pollution Liability

v. Transportation of Goods