J
Jwilkins
Guest
Upstate NY based Not-For-Profit corporation was incorporated in late 1950's as a flying club. The corporation owns the airport, 4 aircraft, and has a full time flight instructor, as well as several part time instructors. The assets of the corporation are owned by the members (120+). Over the years as public-funds grants have been invested in the airport there have been liens filed in the amount of the grant for the duration of the guarantee period (Grants usually require 20 years public access to the facility) specified by the grant. Since the grants far exceed the market value of the property, there is little, if any, equity in the corporation. Club owned aircraft are piloted only by members, although there is no restriction on passengers. Approximately 30 other aircraft are based onthe field. The airport is open to the public and access is not restricted to club members. Both club members and non-club members have aircraft based on the field. Two aircraft mechanics have independant separate businesses based on the field.
My question is if 1) the Directors and Officers of the corporation and 2) the members have significant potential personal liability in the event of a lawsuit. We have recently requested a quote for D&O liability insurance, but are not sure how to evaluate the risk we would be managing with this insurance. The operation does carry property and liability insurance.
Is there any significant potential benefit in separating the flying club entity from the airport operation?
My question is if 1) the Directors and Officers of the corporation and 2) the members have significant potential personal liability in the event of a lawsuit. We have recently requested a quote for D&O liability insurance, but are not sure how to evaluate the risk we would be managing with this insurance. The operation does carry property and liability insurance.
Is there any significant potential benefit in separating the flying club entity from the airport operation?