Category: RRG Insurnace

Why does USHPA need insurance, anyway?!

In a recent conversation with another pilot, he was stating that none of the land owners where he flies have asked or care about insurance.  This isn’t the case everywhere, obviously… but this pilot’s experience isn’t entirely unique, either.  There’s a number of sites that don’t have insurance, and are more-or-less unregulated…

I’d like to suggest a reason to insure a site, whether the land owner requires it or not.

There has been a lot of talk of supporting the RRG fundraiser, supporting USHPA, supporting free flight (hang gliding and paragliding).  I’d like to introduce a different, much more personal, perspective… Being good people, doing the right thing, and taking care of the most important things in this world- our family and friends.


Why RRG Will Succeed Where Past Insurance Failed

First, the background- extremely abbreviated- hang gliding and paragliding is an inherently risky activity.  While it is also something we can do quite safely through proper training and diligence, the risk potential is always there.  For this reason, among others, the United States Hang Gliding and Paragliding Association (USHPA) has provided 3rd party liability insurance to all members.  This insurance is a necessary level of protection because most of the places we fly, we would be considered a liability to landowners and anyone nearby.

Recently, the provider of our insurance policy issued a notice of non-renewal, leaving us looking for a solution to a potentially VERY big problem.  There are a number of reasons for discontinuing our coverage, but let’s keep it simple and say that it was either too costly or at least not profitable enough to the insurance provider to insure us.  The insurance provider USHPA has been using was actually the *ONLY* provider willing to insure them… which complicates things further- when the last bar in town closes, where do you go to get a drink?

Home!  USHPA has considered self-insuring for quite a while, but the capital necessary to get that started is large… and the formation of such a thing wasn’t quite worth not just going with the insurance we had.  With the notice of non-renewal, this has changed.  It’s still a big amount of money, and a big pain in the butt honestly, BUT this will be much, much better for us if we pull it off…

For more information about the plan to self-insure by forming a Risk Retention Group (“RRG”), USHPA’s site has good info and FAQ’s HERE

A question I am hearing often, and I would like to address: Why will the new RRG insurance be successful when our past insurance failed???  This is a great question, and something we should all logically be asking before investing our money into the RRG fundraiser.  I haven’t seen a DETAILED answer to that question- and I think it’s holding a lot of people back from financially supporting this- so let’s answer it right here and now! (more…)