The aviation industry has very complex exposures that are faced on a regular basis and having adequate insurance is vital to their existence. Doing so requires a high level of expertise and access to aviation insurance markets and underwriting capacity to address those very needs. There are insurance agencies and brokerages that are well equipped to handle the types of issues that those who own planes face, and can tailor policies that will cover many or all of the concerns regarding aircraft and the risks involved in running and operating this often used form of travel.
1.Dont over insure or underinsure an aircraft
Hull insurance policies are stated-value policies meaning that, in the case of a total loss the insurance company pays the stated value of the policy. By knowing the aircrafts true replacement cost the owner can then insure the aircraft for that amount. Over insuring an aircraft will merely result in higher premiums, while underinsuring means needing to pay money out of pocket to replace that aircraft if its damaged or lost. It is prudent to adjust the aircrafts stated value at the beginning of each policy period, or if the aircraft receives costly modifications.
2.Reading and understanding the policy
Review the policy with a broker and ask about any clauses not clearly understood. Make sure that the policy adequately represents both, the type and level of coverage expected. Ask questions to determine exactly what will happen under this policy in the event that there is a loss.
3.Notify the broker of any significant changes in operations.
Different insurance policies handle different types of operations in different ways. For example, someone engaging in a time-share or interchange agreement with another company might have some insurance companies considering that a commercial operation that requires coverage different from a simple Part 91 private operation. Be aware that if that coverage is not in place and there is a loss, the insurance company might not pay on the claim.
4.Dont allow pilots to sign waivers
Some fixed based operations (FBOs) ask pilots to sign a Waiver of Rights to Subrogation form. The form waives the right of the aircraft owners insurance company to sue the FBO or its insurance company in case any damage is done to the aircraft while it is in their possession. This would likely result in there being no insurance coverage for damage done by FBO personnel. The pilot will have negated the policy by giving up the insurance companys right to go after the FBOs insurer to cover the cost of the claim.
1.Dont over insure or underinsure an aircraft
Hull insurance policies are stated-value policies meaning that, in the case of a total loss the insurance company pays the stated value of the policy. By knowing the aircrafts true replacement cost the owner can then insure the aircraft for that amount. Over insuring an aircraft will merely result in higher premiums, while underinsuring means needing to pay money out of pocket to replace that aircraft if its damaged or lost. It is prudent to adjust the aircrafts stated value at the beginning of each policy period, or if the aircraft receives costly modifications.
2.Reading and understanding the policy
Review the policy with a broker and ask about any clauses not clearly understood. Make sure that the policy adequately represents both, the type and level of coverage expected. Ask questions to determine exactly what will happen under this policy in the event that there is a loss.
3.Notify the broker of any significant changes in operations.
Different insurance policies handle different types of operations in different ways. For example, someone engaging in a time-share or interchange agreement with another company might have some insurance companies considering that a commercial operation that requires coverage different from a simple Part 91 private operation. Be aware that if that coverage is not in place and there is a loss, the insurance company might not pay on the claim.
4.Dont allow pilots to sign waivers
Some fixed based operations (FBOs) ask pilots to sign a Waiver of Rights to Subrogation form. The form waives the right of the aircraft owners insurance company to sue the FBO or its insurance company in case any damage is done to the aircraft while it is in their possession. This would likely result in there being no insurance coverage for damage done by FBO personnel. The pilot will have negated the policy by giving up the insurance companys right to go after the FBOs insurer to cover the cost of the claim.