Aviation Insurance 101
Aviation insurance is designed to cover aircraft operation and the specific risks involved with aviation. Aviation insurance policies may vary, with different coverage amounts and types of risks and accidents covered from policy to policy. It is important to make sure that you have read the fine print and really understand what is covered, periodically reviewing your policy to make sure that the policy still fits your needs.
What to Look for in an Aviation Insurance Provider
Aviation insurance providers should be secure and financially stable. Aviation insurance companies should also be well established and trusted in the industry, as this will increase the likelihood that the company will understand the intricacies of aviation insurance and the differing country requirements that may come into play. Aviation insurance providers must also be licensed to provide insurance, with each representative acting on behalf of the company also being required to be individually licensed.
What’s the Difference between Providers and Brokers?
Aviation insurance providers underwrite insurance policies and actually pay the claims in the event of an accident or incident. Aviation insurance brokers research different aviation insurance providers and make arrangements between insurance providers and clients. Brokers may provide clients with advice about different insurance options and requirements, but they do not actually insurance individuals or assume associated risks.
Understand Country Laws and Requirements
Insurance policy wording, format, and coverage areas must comply with country requirements, so it is critical to do your homework and make sure that you understand what the requirements and laws are. Aviation insurance providers are not all created equal and errors may eventually occur that can cause compliance issues. To protect yourself, your property, and your passengers, make sure that you understand the requirements so that you are not dependent upon someone else’s knowledge.
Be Aware of Additional Coverage Options
Aviation policies may cover in-flight damages, damages that occur while the plane is on the ground and not in motion, damages that occur while the plane in on the ground in motion, injury to passengers, injury to public or private property, and even “war-risk” situations. These different coverage areas may sometimes be offered in packages at discounted rates and may sometimes be offered separately. When selecting aviation insurance, you should make sure that you understand what your policy covers and what other options you may have.
Make Sure You Have the Right Coverage
When you select your insurance policy, it is likely to be the best policy for you or your company at the time. However, your needs may change dramatically as time passes and your company or habits change. To make sure that you continue to have the right aviation insurance coverage, you should review your policy at least once a year and make updates as needed.