STLPilot
Posts: 9206
Joined: 3/12/2003
From: Manhattan,
NY, USA
Status: online
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Jug's right, why don't you just get your own commercial insurance, afterall what your doing is a commercial entity. I bet it will cost you a lot less then you think, even as a for profit.
But do you know why insurance carriers must segregate commercial insurance from non-commercial for insurance policies? Do you think it's because they don't want to do it? No, it's so you wear a red flag over your head for the taxman. To qualify for commercial insurance you need to be setup as a business and typically provide a tax ID number. If you make income the gov't is going to want a piece of the action, no matter how small as long as you operation net's a profit. Thank the gov't, not the AMA for the reasoning.
The AMA has a list of commercial RC schools on their website. If I were you I would call a few of them and ask how they acquired their commercial RC operations insurance. But you could just call your local general insurance provider, give him the details and ask for a quote. But like I said, if you tell the insurance company you are providing a "service" for personal net income, you've just raised the red flag on yourself as far as they are concerned. You best bet is to try and get a rider or maybe just utilize your homeowners. But again, I doubt you'll see nickel 1 if you try to file a claim and they found out you were doing it for any kind of profit without letting them know upfront.
The bottom line is that I doubt very much the AMA's insurance is setup to provide commercial "for profit" liabilities. Afterall their organization is a not for profit, like a church. With being setup as a not for profit gets perks on one side and disadvantages on the other, namely being able to personally bank profits like it sounds like you may want to do. A "ton of money" makes no difference to the IRS, in their minds no job is too small.
Oh but here is a little bit of bad news. If you want to get your own insurance and use that insurance in more then one state, you'll need coverage in each state where you provide the service. This time you can thank local tax and insurance laws for this little surprise.
< Message edited by STLPilot -- 12/5/2007 9:28:44 PM >
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