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Question:
What can be done to receive a lower premium quote from an aviation insurance
company?
Question:
Do some aircraft makes receive better insurance rates than others?
Question:
Do you know your insurance company? What you should know.
Question:
Why are rotor wing aircraft harder and more costly to insure that most fixed
wing aircraft?
Question:
Cost Reimbursement, can I be reimbursed for some, all or part of the
operating cost of my aircraft?
Question:
Flights outside of the continental United States, am I covered?
Question:
What is an Agent of Record
Letter or Broker of Record Letter?
Question:
Is the pilot of an aircraft covered by the company covering the aircraft
that he or she is flying?
Question:
How many hours as an agriculture pilot are needed before I can be considered
for a position as an agricultural pilot?
Question:
What is a breach of
warranty?
Question:
Does my insurance policy for my agricultural aircraft cover the person or
farm for which I am spraying?
Question:
What can be done to
receive a lower premium quote from an aviation insurance company?
Answer:
Below are a few responses of things that can be done to help lower the cost
of your insurance premium.
A. Do
business with an agent or broker that as established relationships with
individual insurance companies. Understanding how business is done in the
aviation insurance world will help your cause. Premiums are determined on
an individual risk basis meaning to say an agent will remit specific
information about your aviation aircraft or operation to a company and
receive quotations from the company on your behalf. Having an agent or
broker that has established relations with a specific company can and often
will make a lot of difference in your premium.
B. Recurrent
training in your make and model aircraft will most often make a difference
in what is quoted. This is not much different that automobile drivers
taking a drivers education course. You should make sure to approach your
insurance company about the company you are considering before obligating
yourself to recurrent training. Some companies will only accept certain
pre-approved companies for recurrent training such as Flight Safety
International and Simuflite International.
C. Having
an Instrument Flight Rating will usually help. It shows the company that
you are striving to show proficiency. Ratings show your professional
attitude towards flying and make you a better risk to your insurance
company.
D. Stay
current in your make and model aircraft. Currency is one of the keys to
safety.
E. Always submit all of the
requested information to your company. Allowing your underwriter to inspect
your information allows him or her to grow a comfort level with your
operation or capabilities and credentials. Information is one of the keys to
allowing the insurance company to gain the best understanding or your skills
and abilities in your specific aircraft.
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Question:
Do some aircraft makes receive better insurance rates than others?
Answer:
Some aircraft
have better safety records than others. Turbine aircraft are generally
safer than piston aircraft; however, a complex aircraft needs to be piloted
by a equally qualified pilot. For some aircraft with questionable safety
records there may be only one or two insurance companies that are willing to
provide coverage and what they may provide could be very costly and
limited. Take into consideration the safety record of an aircraft and your
qualifications in that particular aircraft, work with AirSouth before the
purchase to ensure you have the best possible insurance coverage at the best
possible cost.
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Question:
Do you know your insurance company? what you
should know.
Answer:
The reason you
buy insurance is for payment of claims and thus you should understand their
claims payment ability and philosophy. All companies vary in their attitude
towards servicing their clients and payment of claims. Just because
AirSouth is prompt with servicing your account does not mean that we can
always get immediate results from an insurance company. The old theory of
you get what you pay for holds true. Companies with higher AM Best and S&P
financial ratings can and often charge a higher premium for their policies
and are usually more responsive to claims needs of their customers.
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Question:
Why are rotor wing aircraft harder and more
costly to insure that most fixed wing aircraft?
Answer:
As
opposed to a larger number of fixed wing aircraft in the world, having only
a small number of helicopters to insure in the world poses the issue of
having a smaller number of units with which to spread the risk. Insurance
works off of the law of large numbers and being able to spread risk over a
large number of items usually produces a better allocated cost or premium
for each unit. This works against helicopters or rotorcraft as there are
only a limited number in the world. Rotor wing aircraft also have a higher
accident rate.
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Question:
Cost
Reimbursement, can I be reimbursed for some, all or part of the operating
cost of my aircraft?
Answer:
This can be a very critical issue. Please read your insurance policy in
detail. This might not seem like a big issue, but violating your policy
with this issue will quickly put you in jeopardy with your insurance
company. Some insurance policies allow for reimbursement of gas and oil
only and others allow for more. Please advise your agent or broker about
any arrangements you may have for reimbursement so this can properly be
addressed with your insurance company.
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Question:
Flights outside of the continental United States, am I covered?
Answer:
Most policies
that are issued for turbine and jet aircraft allow for worldwide coverage.
Most other policies provide coverage for continuous flights within the U.S.,
Mexico and Canada. Flights to the Bahamas and most Caribbean islands are
usually included in most policies.
Please make sure to notify your agent in
advance before departing for Mexico as a special insurance policy issued by
a Mexican Insurance Company will be required upon landing. You do not want
to land in Mexico without this Mexican insurance policy, it could ruin your
travel plans! Arrangements for a Mexican insurance policy can be made
through AirSouth.
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Question:
What is an Agent of Record Letter or Broker of Record Letter?
Answer:
Aviation
insurance companies are dependent upon agents to produce business for their
review and evaluation. Usually aviation insurance companies accept business
on a first come first serve basis, meaning the first agent to submit your
application for insurance to a specified insurance company has the rights to
that particular insurance company for a quotation for coverage. The first
agent to submit to anyone particular company is known as the agent of
record, to the insurance company in question. If the customer decides that
he or she wishes to change agents he or she can designate a specified agent
with whom to do business. By signing an agent of record letter the
purchaser of insurance will authorize a different agent to represent him or
her to the insurance company. It is important to recognize that signing an
agent of record letter actually terminates the current or existing agent
which represents you in the market place among insurance companies. The
letter also disengages the current or existing agent and does not allow that
agent to negotiate or act on your behalf after the letter activates a new
relationship with the new agent or broker. Signing an agent or record
letter it is not much different than an actor hiring an agent. From the
time of hiring the agent takes care of all negotiations and details with the
parties in question.
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Question:
Is the pilot of an aircraft covered by the
company covering the aircraft that he or she is flying?
Answer:
If the pilot is
approved by the insurance company to fly the aircraft in question then any
resulting damage (bodily injury and or property damage) the pilot might
cause will be covered by the company, subject to the terms, conditions and
any exclusions in the insurance policy. The damages that are typical are
bodily injury and physical damage to the aircraft and property the aircraft
may damage. If the pilot does not have a financial interest in the aircraft
then it is possible that the insurance company may seek reimbursement from
he or she for the damage caused. It is possible to navigate around this
issue, call Don or Gerald at AirSouth for details.
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Question:
How many hours as an agriculture pilot are
needed before I can be considered for a position as an agricultural pilot?
Answer:
This is dictated
by two different parties. Most insurance companies require that all ag
pilots have a minimum of 500 hours of crop spraying time. Most operators
also require that all entry-level pilots have a minimum of 500 hours because
the insurance companies require this amount of time before they will cover
the aircraft and any resulting damage from the aircraft
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Question: What is a breach of
warranty?
Answer:
A breach
of warranty is the breaching or a warranty contract, or in the insurance
world meaning an insurance contract. This is purely a legal term that is
applied in a slightly different fashion in the aviation insurance world. A
breach of warranty in the aviation insurance world means that you have
performed some act that actually voids the insurance contract. Despite the
fact that you have voided the contract, if a bank holds a lien on your
aircraft, and if during the act of voiding the contract the aircraft is
damaged or is a total loss the insurance company will pay off the lien
amount to the bank. That is a complex way of saying a breach of warranty is
solely for the benefit and protection of a bank that has a lien on your
aircraft.
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Question:
Does my insurance policy for my agricultural
aircraft cover the person or farm for which I am spraying?
Answer:
The insurance
coverage that has been designed over years with specific intent for a
reason. Most policies are not designed to cover the farm for which I am
spraying. The policy is to cover adjacent fields that are not meant to be
sprayed with chemicals. So, if you accidentally overspray chemicals on the
next field and damage crops the policy will respond to damages as a result
of the over-spray of chemicals.
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