3 Ways You Might be Sabotaging Your Own Insurance Renewal

The annual letter arrives from your aviation insurance company sounding the alarm for another approaching renewal: “Your aircraft insurance policy does not renew automatically, and we will require current and updated information from your insurance broker. In the meantime, you are hereby notified that premium and/or coverage may change depending on the information we receive.”  We all know filling out these forms is about as much fun as having the proverbial tooth pulled but we are also talking about a system designed to protect all that you have worked hard to build.  As you are acutely aware, we are facing a historic hard insurance market with soaring premiums, coverage reductions and new underwriting restrictions. Don’t make it worse. Here are three ways you might be sabotaging your own insurance program:

1.     Procrastinating on completing the requested updates until the last minute. We typically send the renewal update forms to our clients 60 to 90 days in advance of the policy expiration. We are often required to follow up multiple times for the return of these important documents. If they are returned promptly, it gives us current information (read: ammunition) and more importantly, time to properly market your account with other insurance companies. It takes time to negotiate with each underwriter on pricing and coverage. Currently where many companies are doing the work of 10 employees with 5, getting a response can take weeks, not days.  Since the aviation risk probably represents one of the largest catastrophic loss exposures you or your company faces, this absolutely should be identified as the priority it is and treated as such.

2.     Giving the forms to the least qualified person for completion. Since aviation has its own certain vernacular, giving the form to someone in your office that doesn’t know a Cessna 150 from a Cessna 510, RVSM from TAWS, or a N# from the airport ID, virtually assures incorrect or incomplete information will be submitted on your behalf. Missed details are the difference between writing a policy as bulletproof as possible or one that is full of holes. Generally, it will be a team effort with your pilot(s) completing the areas of the forms they have expertise in, and your finance / insurance department filling out the remainder.

3.     Leaving questions blank or giving vague or half-answers. Many insureds leave questions blank or give half-answers because they are under the impression that if they answer yes to a question that asks if they are engaged in a certain activity, they will be charged more premium - as if they leave it blank or give a half-answer it will be covered, right? The questions on applications are designed to identify uninsured exposures. If a yes answer to a question identifies an uninsured exposure, wouldn’t you want to know what it would take to plug this gap in your protection? Often coverage can be added at no additional premium. If there is a premium, you can decide whether to pay it, or possibly not engage in the activity. To not address it is a decision, maybe not the best one.

Not surprisingly, it is all about – details, details, details (that is, documentation). Like it or not, underwriters are generally forced to get to know you (and judge you) through a piece of paper, and they love paper with plenty of details! If you are doing all the right things but are not taking the time to document them or otherwise let your broker know, you lose the horsepower that creates for your renewal. Completely filling out applications, renewal questionnaires and pilot forms in a timely manner gives brokers much-needed ammunition when they go to bat for your coverage program and premium rates. It also sends a subliminal message to underwriters: If you are this detail-oriented when it comes to paperwork, imagine how meticulous and safe your aviation department must be!  Do not forget to forward a copy of training certificates, including any events such as TCF’s Systems, Engine & Ops Seminars or online safety courses that you may have completed during the year.

And last, if you have any questions when completing these insurance forms, pick up the phone and contact the professionals on your AssuredPartners Aerospace team or email us.