Owners of all types of businesses understand that the right insurance cover can save their company (as well as their life’s work) in the event of unforeseeable circumstances. However, it is not always easy to figure out the types and amounts of insurance your business needs. Determining the right insurance for those in the aviation industry can be quite challenging. Cover for the aircraft, pilot, passengers, employees, and property are a few of the many factors your insurance cover needs to consider.Additionally, the insurance must meet the guidelines set forth by the Australian government. If you participate in international air travel, you must consider the standards of the International Civil Aviation Organization (ICAO) when deciding on your cover.
What Types of Aviation Insurance Are Available?
Numerous insurance options exist under the blanket of aviation cover. Some of these can be quite specific such as cover for helicopters, gliders, and historical aircraft such as vintage Warbirds. However, here are some of the most universally sought-after types of aviation insurance.
Generally, aircraft insurance divides into two separate categories of cover.
- Hull Insurance - Hull cover pays for physical damage to your aircraft as well as the equipment needed to operate the plane. Hull cover is normally in effect for planes flying or on the ground. There are typically exclusions to hull insurance depending on your policy. Usually, damage to planes due to acts of war, flying outside of a predetermined envelop, and general wear and tear are not a part of standard aircraft hull insurance.
- Liability Insurance - Aircraft liability insurance covers passengers and employees in the event of a bodily loss. The cover also extends to third parties as well as property. Generally, it is possible to add cover for damages caused by ingesting debris into a plane’s turbine engine to a policy.
Pilot Loss of License Insurance
Those employed as pilots know that considerable amounts of time and resources are necessary to earn a pilot license. Pilot loss of license insurance protects you if an accident, injury, or illness prevents you from preforming the duties outlined by your license. This cover pays financial benefits to assist you while you cannot fly.
Hangarkeepers Liability Insurance
If you are responsible for aircraft on the ground not owned, operated, or leased by you, hangar keeper’s liability insurance provides cover. The insurance applies to aircraft or aircraft equipment that you are storing, maintaining, or repairing on the ground. This insurance cover extends to the actions of your employees.
Hangarkeepers Premises Liability Insurance
This cover protects you in the event that a third party suffers a loss that occurred as a direct result of your services, actions, or those of your employees. This typically includes losses caused by faulty machinery or your premises.
Goods in Transit Insurance
Having cover for by accident in transit protects you and your business from any of a number of potential problems leading to a loss. While no one wants to think about in-flight accidents, they are an unfortunate fact of life. Should goods you are transporting become lost or damaged because of a problem in the air or on the ground, goods in transit cover will payout, so you are able to reimburse your customer.This cover can be applicable for cases of theft from your aircraft or in route to your aircraft as well as unforeseen events like fire or flood. Specific details of coverage vary, so outline your situation to an insurance specialist to be sure you have the cover you need.
Pilot Indemnity Insurance
As a professional indemnity cover, this insurance protects pilots (and in some cases aviation instructors and flight examiners) from civil liability related to job performance. Most policies specifically address the cover of
- Passenger liability
- Bodily injury
The cover applies to circumstances produced by accidents involving the aircraft or by any person or property falling from the aircraft. Ask your insurance specialist to explain any specific limits, exclusions, or conditions written into your policy.
Frequently Asked Questions
How is My Premium Determined?
Various factors such as the value of the aircraft, age and type of your aircraft, your level of flight experience, and the purpose of use all go into determining the premium.
What is the Standard Purpose of Use Aircraft as Defined by Aviation Insurance?
- Business - Travel to see clients
- Private - You receive compensation for transporting goods or people
- Pleasure - Flight not associated with a business or commercial purpose
[caption id="attachment_17619" align="aligncenter" width="594"]
A private charter company has different insurance needs to a large commercial airline[/caption]
Who Should I Allow to Fly My Plane?
If more than one licensed pilot will use your aircraft, it is important that you name him or her on the insurance policy. An additional charge may apply based on the pilot’s experience, total flight time, time flying the type of aircraft, and claim history.Navigating through the many options and requirements necessary for aviation insurance is not something you want to do alone. Consider working with an insurance specialist to make sure you are properly covered.