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F.A.Q.

Clicking on the question will jump you down to the answer.

Question: What can be done to receive a lower premium quote from an aviation insurance company?

Question: Are some aircraft less expensive to insure than others?

Question: What should you know about your insurance company?

Question: Why are rotor wing aircraft harder and more expensive to insure than fixed wing aircraft?

Question: Can I be reimbursed for all or part of the operating cost of my aircraft?

Question: Am I covered for flights outside the continental United States?

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 agricultural pilot are needed before I can be considered for a position as an agricultural pilot?

Question: What is 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 driver's 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.

Question: Are some aircraft less expensive to insure 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.

Question: What should you know about your insurance company?

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.

Question: Why are rotor wing aircraft harder and more expensive to insure than 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.  This, combined with a higher accident rate, make rotor aircraft more expensive to insure.

Question: Can I be reimbursed for 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.

Question: Am I covered for flights outside the continental United States?

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.

Question: What is an Agent of Record letter or Broker of Record letter?

Answer: Aviation companies are dependent upon agents to produce business for their review and evaluation. Usually, aviation insurance companies accept business on a first come-first served basis; meaning the 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 wishes to change agents then he can designate an agent with whom to do business. By signing a agent of record letter the purchaser of insurance will authorize a different agent to represent him 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.

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.

Question: How many hours as an agricultural 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.

Question: What is 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.

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.