Piper Aircraft Inc. has had been on a corporate rollercoaster in the last fifteen years, going through bankruptcy, layoffs and labor disputes in order to arrive at fiscal stability during recent times. Now, they are looking at an additional business burden that may send them looking for a new location in another state. Piper has had a 1,150 percent increase in its property insurance costs in less than two years.

The aircraft manufacturer is based in Vero Beach Florida and has seen its annual premiums jump from $400,000 in 2004 to about $4.4 million in 2006, not including a $600,000 storm-related surcharge.

According to the company’s CEO James Bass, property insurance is going to be a principal consideration during the decision making process over where to build their first jet. Also under consideration is whether or not to remain in Florida at all, where they employ over a thousand people. If the state wants to remain competitive for businesses, “there has to be some type of mitigation of that expense,” Bass said during an interview earlier this month at Piper’s headquarters.

“I mean, over a 10-year period, if I’m paying $4 million more in insurance … that’s a $40 million fee that I wouldn’t have to pay in some other location,” Bass said. “That’s a lot of money.” Other states courting the company – and there are several – will have an advantage when it comes to insurance, unless Florida lawmakers provide relief for businesses.

Last month the state’s new Florida Property & Casualty Joint Underwriting Association started writing policies for businesses that can’t get private insurance, but it only covers risks of up to $2 million. This service is for “businesses that couldn’t get any coverage,” said Bob Lotane, spokesman for the Florida Office of Insurance Regulation. “[However] there are businesses that can get written, but they’re at such high rates that it becomes a factor that influences how they decide to go forward in Florida.”

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