Aircraft Insurance and considerations to chose

Damage to planes and injuring passengers are two of the biggest nightmares for pilots. If you fly without aircraft insurance, an accident can cause a severe financial catastrophe-not to mention the legal risks. 

If your career or passion has given you a cockpit seat, proper aircraft insurance will provide you and your passengers with the coveted protection. State or federal agencies may not require aircraft insurance. Still, the basic policy protects you and your aircraft from the economic consequences of an aviation accident or other types of damage. This includes weather-related damage, vandalism or property damage, and damage or accidents that may occur during flight or on the ground. 

A good aircraft insurance policy provides at least basic liability insurance. It is insured according to needs, budget, and related circumstances and coverage requirements (flight to Alaska, vintage aircraft, educational needs, etc.) Provides the option to customize. Read on to find out which aircraft insurance company is right for you.

There are also some facts an aviation company should consider before choosing an aircraft insurance company, such as,

• A wide range of covers to meet the needs of each insured. 
• Compensates for property and personal injury to pilots and passengers if equipment wears or the plane crashes. 
• Protection of commercial and non-commercial aircraft, helicopters, and uncrewed aerial vehicles.
• An insurance company that understands the statutory minimum insurance requirements. 
• Look for an insurance company that clearly describes what is covered and not covered by your insurance.

Who needs the aircraft insurance and when to get the coverage?

• You charter the aircraft, and the aircraft owner provides the pilot 
•  Student pilot undergoing flight training on another person’s aircraft 
•  A flight instructor who guides the client’s aircraft 
•  You borrow or rent someone’s plane 
•  Mechanic Test-Customer Aircraft Flight 
•  Deliver the aircraft to someone else 
•  FBO (Fixed Base Operator) that provides flight guidance on client aircraft 
•  Independent professional contract pilot piloting the owner’s aircraft 
•  Aircraft flight, accompanied by aircraft owner/pilot

When should you get the coverage?

To meet the state’s minimum requirements, you must have at least sufficient liability insurance. But how much air insurance do you need? The amount of insurance depends on the flight method, experience as a pilot, frequency of flight, and location of flying, so we cannot answer just one question. 

As a general rule of thumb, aviation experts should choose a policy that most recreation pilots compensate at least $ 1 million for each claim of property damage and at least $ 100,000 for each share of passenger injury. Is recommended. As the weight (and value) increase, so does its liability and passenger insurance policy. Large planes can do much more damage than small hobby planes and usually cost more to repair.

What do they cover and their requirements?

There are several types of aviation insurance, but most insurance companies offer multiple insurance and bundle discounts. As with car insurance, you need to consider your budget and circumstances when deciding how much insurance you need. Some of the most common types of aviation insurance are:

• Public liability insurance 

Public liability insurance sometimes referred to as third-party liability insurance suddenly forces an airplane to land or collide. This type of insurance does not protect you or your aircraft; it only covers people outside the plane who have injured or harmed you during the flight. 

• Passenger liability insurance 

Passenger liability insurance provides coverage if a passenger on an airplane is injured or killed during a flight. It is usually sold per seat and depends on the number of passengers the aircraft can accommodate. 

• Combined single limit insurance 

Combined, a single limit policy includes passenger and general liability insurance under one premium. This type of policy provides flexibility in bill payments, significantly if passengers are injured, and there is no significant property damage in a collision or emergency landing. 

• Ground risk hull insurance not in motion 

This type of insurance provides compensation and protection for aircraft damaged, not during a flight. For example, most immovable ground-risk hull insurance covers damage from hangar fires, hurricanes, wind, theft, or vandalism. In addition, most hull insurance policies include a small deduction to avoid unnecessary claims. 

• Ground Risk Comprehensive Insurance on the Move 

Moving ground hull insurance is different from non-moving ground hull insurance but covers the period when the aircraft is in motion but not in flight. This type of insurance covers taxiing aircraft but does not cover aircraft takeoff, landing, or in-flight insurance. Due to a dispute between insurers and pilots about whether the plane was damaged in flight or before launch, many insurers either discontinued this type of insurance or switched to in-flight insurance. 

• In-flight Insurance  

In-flight insurance is comprehensive insurance that protects the aircraft at all stages of use. Contrary to its name, most in-flight insurance policies do not limit coverage to accidents that occur onboard and also apply to accidents that occur while the aircraft is taking off, parking, or being stored. In-flight insurance is the most expensive type of aviation insurance available, as it causes the most costly damage to most aircraft on board.

Here’s how the above insurance coverages are categorized: 

• Personal Injury Liability covers both bystanders and, depending on the policy, passengers in plane accidents. It also helps pay legal defense fees for applicable claims if the pilot is issued. 
• Liability for property damages covers damages to the property of a third party, excluding damages to the leased aircraft. 
• Aircraft liability insurance (ADL or broadly: “hull coverage”) covers damage to the aircraft itself.

Requirements

The precise amount and type of aviation insurance you`ll need to stay within the bounds of the law varies reliant on the kind of aircraft you`re flying, the aircraft`s construction, and where you fly. Public liability insurance is compulsory in most states and countries. You may need to carry an explicit level of public liability insurance depending on the size and value of your aircraft. 

 Passenger liability insurance is also obligatory for commercial airlines and aircraft in many countries. The average domestic public liability policy sold in the United States has a limit of $100,000 in reimbursement per passenger or injury. Just like with auto insurance, guidelines and minimum liability insurance vary by state, so make sure to research your detailed state laws before you choose a policy.  If you fly an aircraft outside the United States, you need to be prepared to have far more insurance than the average domestic pilot. For example, in Canada and the European Union, pilots need to have at least $ 1 million in insurance. This insurance requirement increases as the weight of the aircraft increases. 

Minimum insurance for the heaviest airliners can even reach $ 116 million. If you are a commercial pilot who needs to fly outside the United States, check with your employer that you have sufficient coverage for flying legally.

Avemco Insurance

Avemco has been protecting pilots for over 55 years and works directly with aviation insurance professionals to create coverage tailored to the needs of each policyholder. Competitive pricing, customizable plans, and safety-related discounts make Avemco the perfect option for your flight club. 

One of the main benefits of the Avemco Aviation Club policy is that each club can work directly with the Avemco Aviation Insurance Specialist to create policies tailored to each club’s unique needs. Avemco further empowers policyholders by allowing them to add and remove members at any time during the insurance year without having to contact Avemco directly or submit unnecessary paperwork. 

Avemco’s Flight Club insurance policy can result in up to $ 100 million in property damage and $ 100,000 in personal injury per person. Each procedure is custom-designed to meet the unique needs of each group and eases the limitations associated with a universal approach to insurance. Policyholders can also take advantage of several discount opportunities, such as club aircraft hanging and undamaged flight discounts. Members can also take advantage of Avemco’s Safety Rewards Rebate, reducing rewards by up to 10% once the pilot completes approved flight training.

Pros

• Discounts to complete safety programs 
• Flexible policies for club member changes  
• Strong customer service 

Cons

• Scope and products vary by jurisdiction 
• No corporate or business policy 
• Not available on multi-engine aircraft

BWI Insurance

BWI Fly is consistently ranked as one of the top aviation insurance companies by offering a wide range of insurance options, excellent customer service, and affordable insurance that can be customized to meet your needs. 

BWI’s policy solution can meet both personal and business needs. We also offer a variety of niches or particular policies designed for specific aircraft types and aircraft owners, such as experimental aircraft, surface aircraft, flight clubs, commercial drones, private jets, and aircraft charters. Coverage depends on policyholders and preferences, but BWI’s general aviation coverage options include liability, fuselage, ground and flight, in-flight, and non-moving insurance. Increase. The 

BWI website provides most customers with quick and easy access to online quotes and billing, and their customer service is consistently rated as first class. The provider also has many educational resources that beginners and experienced pilots may find helpful. The standard BWI aviation insurance policy is affordable, with only $ 225 per year and up to $ 1 million in liability insurance. However, it’s always best to find a personalized plan, as plans vary significantly based on policy requirements, experience levels, and other common factors.

Pros

• Affordable  
• Outstanding Customer Service 
• Multiple Policy Options 

Cons

• Unlicensed to operate in Washington DC 

• Guidelines do not apply to some activities, such as skydiving and aerial photography, that require FAA certification.

USAA Insurance

Founded in 1922 as a car insurance company, USAA Insurance Agency has since provided a wide range of services to USAA members and their families. This means a one-stop shop for everything from banking services and mortgages to housing, cars, health, and even plane insurance for veterans. USAA is the best choice for veterans seeking aviation insurance, as members receive dedicated services from experienced insurance companies and receive competitive annual premiums and other benefits. 

USAA’s coverage includes commercial and commercial aircraft, airlines, and agricultural businesses. We also offer third-party liability insurance. The plan covers a variety of aircraft, including traditional planes, helicopters, seaplanes, warbirds, and commercial UAVs (drones), so it’s easy to find a policy that suits the interests of the aviation industry. The Annual Awards will depend on the type of aircraft, the needs of the members, and the coverage selected. Some plans are available for less than $ 100 per year. You must be a USAA member to be covered by USAA Air Insurance. You can log in to your member account or contact USAA directly to receive your customized offer.

Pros

• Competitive Fee 
•  Covers Most Aircraft Types 
•  Commercial, Individual, and Non-Owner Policy 

Cons

• Must Be USAA Member Limited to 
•  Veterans, Active Duties, and Eligible Families

Wings Insurance

Wings have specialized in aviation insurance since 1984 and today offers global insurance solutions through a network of providers. All policies are curated to meet each client’s specific usage, coverage, and financial needs and are a choice for commercial aviation policies. 

Commercial Customers, Wing Policy, Covers All Traditional Infrastructure, including Fuselage and Responsibility, Cargo Operation Responsibility, Pollution, and Environmental Responsibility, Product and Completed Operation, and Property and Maritime Cargo Coverage. You will notice. But if you’re looking for a truly balanced insurance company for your business, you may find that Wing Workers’ Accident Compensation and Life Insurance sets you apart from the competition. Wings take pride in its truly customized underwriting process, the goal of which is to find the best policy for clients in the United States and around the world. Therefore, instant offers are not available online. Fortunately, Wings agents respond quickly and understand the unique needs of commercial aircraft policyholders.

Pros

• Extensive collection of business policies 
•  Workers’ Accident Compensation Scope 
•  Highly curated policies to meet the needs of each client 

Cons

• No immediate online quotes are available 
•  Limited information available online

EAA Insurance

The Experimental Aircraft Association (EAA) is an organization of recreational pilots, restorers, and designers, especially love warbirds, antiques, and classic aircraft. It also offers members several benefits, such as discounted premiums on vintage aircraft and Warbirds. Therefore, EAAs are considered the best choice for the Vintage Aircraft Association (VAA) and Warbirds of America (WOA). Managed by the Falcon Insurance Agency, 

EAA Insurance offers various forms of compensation, including general liability, forced landing on a fair port, strengthening of other aircraft, use of personal belongings and baggage, loss of legal defense, and certification. To do. In addition, it also provides optional compensation to members who are attending educational activities, tourism, and air show events. 

 EAA gives policyholders annual “in motion” deductible credits for multiple aircraft to make insurance policies affordable for enthusiasts and others passionate about vintage aviation. Guaranteed without charge. Further, it also offers policyholders the option to suspend coverage during flight because the owners of vintage aviation may not be in the air less often.

Pros

• Repair Options for Claimed Owners 
•  Multiple Aircraft Discounts 
•  Convenient Online Chat 

Cons

• No Online Quotes Available 
•  Website Provides Limited Policy Information

Falcon Insurance

Falcon Insurance’s motto is “If you fly, Falcon will ensure you”. Therefore, the insurance products certainly meet the company’s standards. This insurance provides pilots with one of the most diverse lists of insurance quotes. It is one of the few aviation insurance providers to serve seaplanes and vintage aircraft and offers drones and UAV insurance. Pilot life insurance can be purchased from the website at great rates, along with personal or commercial aircraft insurance. 

You will need to fill out a form and wait for an insurance agent to contact you to receive a free quote. Falcon Insurance is the number one option with over 40 years of experience providing insurance only to pilots. 

Pros

• Ability to achieve personal goals 
• Self-esteem 
• Ability to learn new things 

Cons

• No manager supports 
• Does not provide a comprehensive work environment 
• Time and place flexibility isn’t available

Disclosure

These are purely the opinions of the author based on observations of financial platforms and a study of public reviews and ratings on the best aircraft insurance companies and their role in 2022. Excerpts from various sources clarify the facts in this article. A glossary of all sources is there at the end of the article. This article is for educational purposes only and is not financial advice.