What You Need to Know About Aviation Insurance
Aviation insurance is a broad term and it applies not only to fixed-wing aircraft but also to helicopters. It normally includes the aircraft itself, often referred to as hull insurance, and in many states and foreign countries must also include insurance for the pilot and passengers as well.
Obtaining Your Aviation Insurance Policy
Not all insurance carriers offer aviation insurance. With the increased popularity in flying, however, it is easier to find quality insurance now than it has ever been in the past. Some companies offer nothing but various types of aviation insurance, while others offer basic policies.
As part of obtaining your coverage, you will need to fill out an application form. The information you provide on the application form will determine if the company feels comfortable covering you or not. It is important that all of the information you provide is correct and up-to-date.
When aviation insurance companies consider taking on a new customer, they will often look at the following: type of aircraft, individual pilot qualifications such as total flying time, time in aircraft type, certificates and ratings, operation purposes including pleasure, commercial, or business, and the aircraft's home base of operations.
Types of Aviation Insurance
Third-Party Liability
Within the US, most states mandate that aircraft owners and those who operate the craft have at least third-party liability insurance, which is also known as public liability insurance. This type of insurance covers damages and injuries to third-party individuals and certain types of property damage such as homes and automobiles in the event of a crash. This type of insurance often includes payment of legal fees and attorney costs should the pilot or owner be sued in court.
These policies have a maximum limit of coverage which may be presented as either sub-limit or smooth. The difference between a sub-limit policy and smooth policy can be significant. It is important to read and understand the details of your policy, in this regard, before accepting the policy.
Passenger Liability Aviation Insurance
This type of insurance covers those who are passengers inside the aircraft in the event of injury or death. In some areas, this coverage is mandatory. In other locations, it is not mandatory for smaller aircraft. Check with your state authorities.
Combined Single Limit Coverage
Combined single limit coverage is somewhat unique in that it combines public liability insurance with passenger liability insurance. For those who only fly occasionally, this can be a good option.
Aircraft Damage Coverage
Aviation insurance for the aircraft itself is usually set up in terms of whether or not the aircraft is "in motion" or "not in motion".
Not in Motion:
This insurance coverage comes into play if the aircraft is damaged while it is sitting, still, on the ground. This would normally include protection for events as theft, fire, vandalism, wind or storm damage, and flooding.
In Motion:
This insurance coverage protects the aircraft as it is taxiing or in motion on the ground. It does not include landings or take-off's and does not include in-flight protection. Because of past disputes between insurance carriers and aircraft owners, this particular type of insurance is not available any longer with several companies.
In-Flight Insurance
This aviation insurance coverage protects the aircraft during flight and most ground operations associated with flight or landing. It can also include coverage for the craft while it is parked.
While understanding the complexities of aviation insurance can seem daunting, working with a knowledgeable insurance broker or agent who is familiar with this special type of insurance can help relieve much of that stress.