An aviation insurance is an insurance cover specifically aimed at the operation of aircraft and the risks in aviation. Aviation insurance policies are clearly different from those for other modes of transport and typically include aviation terminology and terminology, as well as terminology, limitations and clauses specific to aviation insurance. Aircraft insurance, also called aviation insurance, can be purchased for a number of different aircraft types, including standard, experimental and vintage aircraft and seaplanes.
There are many possibilities in the aviation insurance world. There is everything from direct insurers to major brokers to local mummy and pop agents. About a dozen insurers offer general aviation insurance. Some of the main players are AIG, Global Aerospace, Starr Aviation, Phoenix Aviation Managers and USAIG. Important brokers include AOPA Insurance Services, Falcon Insurance and Hardy Aviation Insurance. There is also an underwriter you can buy a policy from without intermediary – Wichita, Kansas-based Avemco.
Many insurers will only quote a specific risk for one broker, a system called locking rates, making it difficult to shop around. The aviation insurance industry is quite specialized, so you’re likely to get a good service from whichever broker you decide to do business with. However, the right broker can save you money and headaches in the event of an accident. More about that later.
If you need airplane insurance today, the news is good. According to Jan D’Angelo, former vice president and branch manager at Chartis Aerospace, a long period of low claims, especially in the commercial world, and a relatively high amount of available capital have increased the number of companies offering GA insurance. Companies such as Britt Paulk, Aggressive Aviation and QBE have come to market over the last decade with highly competitive offerings. As a result, some pilots pay less for their aircraft insurance than for their car coverage. An insurance policy that I paid for $1,025 in 2007 is now quoted at around $850 on the same terms. Rate cuts seem to have exceeded 10 percent across the board, according to several industry experts. For penalty owners, adding up to thousands of dollars in savings.
BREAKING Aircraft DOWN Insurance
Aircraft insurance is necessary because claims or actions arising from the ownership, maintenance or use of aircraft are generally excluded under the Standard Commercial General Liability Forms (CGL).
Companies that choose to use private aircraft in their operations must take out aircraft insurance to cover their liability damage resulting from aircraft liability damage. This may be aircraft liability cover or stand-alone aircraft non-ownership liability insurance, and perhaps also aircraft surplus liability insurance cover. Third party liability cover for aircraft is often provided, including hull cover (physical damage) and medical payments. Aircraft policies are not standardised and vary widely. Some insurers offer policies that combine aircraft and airframe liability with other aviation insurances, such as liability for aircraft products, liability for airport liability, general land-based liability and hangar owner liability insurance.
The policy can also cover passengers’ personal belongings, as well as liability compensation for the hangar in which the aircraft is stored. Insurance policies can cover the cost of injuries sustained during the operation of the aircraft, the cost of emergency landings and the cost of search and rescue operations.
Just as boat owners can take out boat owner insurance to protect against damage to their boat or personal watercraft, so too can aircraft owners protect their property against damage.
The type of cover and the amount of the premium depends on the type of aircraft covered by the policy. Insurers can find aircraft that the owner has built at home (also called homebuilt aircraft) to carry more risks than aircraft that have already been assembled. Some policies provide initial flight cover for aircraft built at home.
What exactly does the aircraft insurance cover?
As an aircraft owner, one of the most important things you should keep in mind is the aircraft insurance. Aircraft insurance gives you the comfort of knowing if something should go wrong, you would not lose thousands of dollars. Since there are so many different types of aircraft and the aircraft owners have different wishes and needs, there are several different options for aviation insurance. To help you get started in choosing an aircraft insurance policy, we take a look at some of the basic types of insurance.
The in-flight insurance covers a plan for all damage that may occur during the flight of the aircraft. Since not all insurance policies cover damage that occurs during movement, it is important to understand what this type of insurance covers. Unfortunately, this type of insurance tends to be one of the more expensive insurances as most accidents happen in the time it covers. But considering this, it is also one of the most necessary types of insurance.
Soil Risk Hull Insurance (Non-Motion)
If an aircraft is damaged on the ground but is not in motion, the damage is covered by this type of insurance. Some possible damages that could be covered by this type of insurance are:
– lightning bolt
– animal damages
– Damage caused by uninsured vehicles
Soil risk hull insurance (application)
This insurance coverage is similar to the Non-Motion Ground Risk Hull Insurance, but instead covers damage that occurs during the flight of the aircraft on the ground. This may also include damage during take-off or taxiing.
Passenger liability insurance
Certain types of pilots and aircraft may be required by law to take out this type of insurance. It provides insurance for passengers travelling on the aircraft while the policyholder is operating it. It provides money for all injuries on the aircraft or final expenses in the event of death.
Public aircraft liability insurance
This type of insurance cover is usually prescribed by law in several places. It provides protection for all damage caused to third parties and property. However, this type of insurance does not cover damage to the aircraft or passengers in the aircraft.
If you own an aircraft, it is important that you, your aircraft and all passengers are protected in the event of an accident. With 584,362 active pilots in the United States in 2016, there are many aircraft insurance companies willing to help. It is important that you get a variety of aircraft insurance policies and find a flight insurance agency that you can trust and feel comfortable with.
Some insurance companies also provide coverage for aircraft hired by the operator and not owned by the operator, as the operator could be held liable for thousands of dollars of damage if something happens to the aircraft. Aircraft insurance is also available to companies, such as airline clubs, where members may be involved in the use of one or more aircraft.