Insuring your aircraft is substantially more complex than insuring your home or vehicle. Failing to understand insurance agreements is a surefire way to violate existing aircraft agreements or invalidate insurance coverage. Before you sign an insurance contract, make sure your insurance protects you. Click here to download full article.
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If the mechanic is an independent contractor then the flight department might not be liable for any mistakes of the mechanic. If the mechanic is an employee of the flight department, then the company is liable for any negligence of the mechanic. Know the risks assumed when hiring a moonlighting