Insurance issues stopping employment?

[Founder]

I've heard a rumor that I'd like to verify. Are there insurance companies who set the minimum time a pilot need to have flown in order to get employment?

For example. An insurance company wont insure an airlines aircraft if the pilots dont have a minimum of x hours ME PIC an so on...?

[BlueEagle]

This depends entirely on the size of the airline and the length of time it has been in existence. "Pilot Warranties', as they are called are unheard of in just about all the major airlines unless they have a bad accident record or a very high turnover of staff. Underwriters expect the airlines to set acceptable standards and experience levels that would make any intervention by the underwriter unnecessary and they can check this for them selves with the airline, underwriters will know that reputable airlines will have minimum experience levels required for employment and an adequate training programme for trainees. A new operator setting up with a couple of Navajos or King Airs who has no actuarial history may well be told that they must ensure their pilots are properly licenced and have a minimum number of relevant hours experience.

This is a simplified answer but generally speaking, reputable airlines do not have any crew experience limitations placed upon them by insurance underwriters.

[Founder]

Then there is no point in a low time pilot to apply for jobs with a brand new airline?

[beaver eager]

I wouldn't worry about that Founder,

Everything has its price, from insurance to the pilot supply market.

I would wager that the money saved by a start-up airline employing the cheapest pilots they can get (usually newly qualified or hours building bods; let's face it - some work for nothing if they have to) more than outweighs any increased premiums foisted on them by their underwriters.

Airlines cannot operate without pilots, if the only pilots available are low hours then they will have to do... Whatever the cost of insuring them.

[Founder]

That's true... Thanx for the input in clearifing this matter for me =)

[Low-Pass]

You can have anyone (who is appropriately qualified) fly your aircraft....if you pay enough. The more experience, the lower the premiums. So, from and insurance point of view, you could have a captain a fresh ATPL but you would probably have to pay a fair bit for it (getting an AOC may be a different matter though). So companies set limits to save them money on their insurance premiums.
LP

[clarityinthemurk]

So the sometimes rumoured 50 hours minimum twin-time requirement/desirability for newbies is just hot air?

[beaver eager]

So companies set limits to save them money on their insurance premiums.
Exactly... And when all the pilots who meet those limits find that they can get better paid jobs elsewhere? Yes! The limits get lowered and the company pays a higher insurance premium. It's the market economy at work.

[Northern Highflyer]

Trying to get my foot on the ladder I looked into working as a parachute drop pilot only to be told "you need to have 400 hours for insurance purposes", so it's not just the airlines.

I would guess that figure has been determined by the level of the premium they are willing to pay. They could lower this figure to 250 but they would have to pay more. And so another door closes. :(