Details Matter in Aircraft Insurance

When it comes to ensuring a smooth collaboration between an aircraft owner and their insurance broker, there are several key actions an owner can take to support their broker in doing the best job on their behalf.

Make sure the following details are correct:

The Named Insured needs to be in the exact name the aircraft is registered in. If it’s registered to a holding corporation, consider discussing with your broker the possibility of including the members of the corporation or their operating companies.

Verify the year of aircraft manufacture, which influences the correct hull value to carry. Owners often get this wrong. Confirm the total number of belted seats in the aircraft is correct [yes, potty included if belted]. Example: 2 crew + 8 passengers. This influences the passenger liability premium component.

If the aircraft is hangered, advise whether it is in a community hangar with other aircraft and, if yes, who provides the push/pull service. If it is in its own hangar by itself, be sure to make this known.

Make certain the pilots provide as much information as possible when completing the required pilot form. Very important to the underwriter is how many hours the pilot has in the exact make and model insured aircraft, how many of those hours are in the last 12 months, and when and where the pilot last completed formal recurrent training for the insured aircraft. Be specific about the exact make and model aircraft for which the training event was completed. With many insurers, Citation CJ3 and CJ3+ training are two different events. Completing CJ3 training doesn’t qualify as completing CJ3+. This is a very important detail because it makes it easy to void coverage under your insurance policy if there is a misunderstanding.

The physical damage hull value should be evaluated every renewal and adjusted to the current market value or outstanding loan amount, whichever is greater. This is very important.

If you are purchasing a new aircraft and will be financing it, engage your broker early in the process. Don’t forget this important detail, as each lienholder has different insurance requirements that must be met before they will fund the purchase of the aircraft. Consider having a DRAFT certificate of insurance issued to the bank showing their insurance requirements have been met so the bank can accept or reject it prior to closing.

If in doubt about any of the above strategies, consult your AssuredPartners Aerospace broker guidance/clarification on this or any other questions you may have. Be sure to visit our newly designed website and join our Facebook page.