LRingeisen
Well Known Member
Insurance can be a confusing topic so we thought a brief overview of a few of our most frequently asked questions would be beneficial. Of course, we can’t discuss every possible situation on this post, so if you have any unique questions, please contact your broker.
Named Insured Verses Named Pilots:
The named insured is who owns the aircraft and the policy should match the FAA registration. The named insured can be an individual, partnership, LLC or even your company name, but can only be the owner of the aircraft. Please note that in the event of a claim or if you cancel your policy the check will be made out to the named insured.
Named pilots are pilots that fly your aircraft on a regular basis. Most companies require the owner to be listed as a named pilot, however exceptions can be made depending on the situation. If you have an occasional use pilot, they may qualify to fly under the Open Pilot Warranty, but that needs to be looked at on a case-by-case basis.
Liability Limits & Med Pay:
The Bodily Injury and Property Damage category is your liability insurance. Let’s say you have a $1,000,000/$100,000 policy (minimum amount that we recommend), the $1,000,000 is per occurrence and the $100,000 would be per passenger. (Example: If there was an accident and your plane went down taking out part of a building and hitting a pedestrian, you would have a total of $1,000,000 to cover the accident. The pedestrian and the building would receive amounts determined by the insurance company up to $1,000,000. If the passengers in the aircraft were injured as well, the amount paid [up to $100,000 each passenger] comes from that $1,000,000 as well.) The passenger does not include you because the policy is to protect you; therefore, you cannot sue yourself. However, this coverage can include your spouse, children, friends, etc., so even if you only take friends and family flying, we recommend you taking the highest passenger coverage offered.
The medical coverage is for small instances, whether you are liable or not. (Example: Your passenger slips getting into the aircraft and needs to go to the hospital for stiches.) You are also able to claim any instances for yourself under this coverage.
Overinsuring & Underinsuring Your Aircraft:
How much should I insure my aircraft for? We get this question a lot, but this isn’t something the broker can decide. Insurance is meant to put you back financially where you were before an incident without bettering yourself. The best way to determine the hull value is to consider what you would pay for an aircraft similar to yours in its current state.
Brokers Verses Insurance Companies:
Brokers are your voice and are not the insurance companies. Brokers work for you by doing the shopping for you and by handling any future service work communications between you and the insurance company. We check multiple insurance companies to find the best options to meet your needs. This doesn’t always mean the lowest premium, but the best option for your individual situation. For example, new insurance companies to the aviation market may have a lower premium, but don’t always have the experience to back it up. We are here to make sure you are placed with a company that is financially stable and will handle any claim that may arise with the experience and service you deserve.
Most aviation insurance companies offer open quoting and should be giving all brokers the same quotes, as long as the information given to them is the same. This is why when you are shopping for insurance, you are really looking for a broker you can trust to give you the service you deserve. If you do check with multiple brokers and get a lower quote from the same carrier, there are several items to look at. Did your current broker get your updated hours and information? Having updated pilot information is important as this plays a big factor in the premium. Is the insured value of the aircraft the same and do the liability limits match your current policy? What about your medical payments? Remember, this is coverage for you whether you are liable or not, so it’s important to make sure you are covered properly in this field as well.
When in doubt about coverage its always best to reach out to your broker. As always, claims on handled on a case-by-case basis.
Named Insured Verses Named Pilots:
The named insured is who owns the aircraft and the policy should match the FAA registration. The named insured can be an individual, partnership, LLC or even your company name, but can only be the owner of the aircraft. Please note that in the event of a claim or if you cancel your policy the check will be made out to the named insured.
Named pilots are pilots that fly your aircraft on a regular basis. Most companies require the owner to be listed as a named pilot, however exceptions can be made depending on the situation. If you have an occasional use pilot, they may qualify to fly under the Open Pilot Warranty, but that needs to be looked at on a case-by-case basis.
Liability Limits & Med Pay:
The Bodily Injury and Property Damage category is your liability insurance. Let’s say you have a $1,000,000/$100,000 policy (minimum amount that we recommend), the $1,000,000 is per occurrence and the $100,000 would be per passenger. (Example: If there was an accident and your plane went down taking out part of a building and hitting a pedestrian, you would have a total of $1,000,000 to cover the accident. The pedestrian and the building would receive amounts determined by the insurance company up to $1,000,000. If the passengers in the aircraft were injured as well, the amount paid [up to $100,000 each passenger] comes from that $1,000,000 as well.) The passenger does not include you because the policy is to protect you; therefore, you cannot sue yourself. However, this coverage can include your spouse, children, friends, etc., so even if you only take friends and family flying, we recommend you taking the highest passenger coverage offered.
The medical coverage is for small instances, whether you are liable or not. (Example: Your passenger slips getting into the aircraft and needs to go to the hospital for stiches.) You are also able to claim any instances for yourself under this coverage.
Overinsuring & Underinsuring Your Aircraft:
How much should I insure my aircraft for? We get this question a lot, but this isn’t something the broker can decide. Insurance is meant to put you back financially where you were before an incident without bettering yourself. The best way to determine the hull value is to consider what you would pay for an aircraft similar to yours in its current state.
Brokers Verses Insurance Companies:
Brokers are your voice and are not the insurance companies. Brokers work for you by doing the shopping for you and by handling any future service work communications between you and the insurance company. We check multiple insurance companies to find the best options to meet your needs. This doesn’t always mean the lowest premium, but the best option for your individual situation. For example, new insurance companies to the aviation market may have a lower premium, but don’t always have the experience to back it up. We are here to make sure you are placed with a company that is financially stable and will handle any claim that may arise with the experience and service you deserve.
Most aviation insurance companies offer open quoting and should be giving all brokers the same quotes, as long as the information given to them is the same. This is why when you are shopping for insurance, you are really looking for a broker you can trust to give you the service you deserve. If you do check with multiple brokers and get a lower quote from the same carrier, there are several items to look at. Did your current broker get your updated hours and information? Having updated pilot information is important as this plays a big factor in the premium. Is the insured value of the aircraft the same and do the liability limits match your current policy? What about your medical payments? Remember, this is coverage for you whether you are liable or not, so it’s important to make sure you are covered properly in this field as well.
When in doubt about coverage its always best to reach out to your broker. As always, claims on handled on a case-by-case basis.