Archive for the ‘Insurance Products’ Category
Being adequately insured is something that should be on every pilot’s pre-flight checklist. That is true of aircraft you own and, just as importantly, aircraft you rent. In fact, confirming you have coverage when renting may be more important in some ways, as it might not be top of mind the way insurance is for aircraft you own.
One quick online search will tell you why insurance companies are withdrawing from providing coverage in disaster-prone areas around the U.S.—it’s extremely expensive to address losses.
As warmer weather arrives and we enter what is traditionally the busier flying season, it is helpful to consider what to do and what to have available in the unfortunate event of a claim. Knowing what to anticipate is beneficial to the efficient, expeditious and collaborative processing and resolution of your claim.
For those new to insurance and even those with several years of experience, some insurance concepts resonate more clearly than others. Whilst it’s fairly obvious what property and workers’ compensation insurance cover, the meaning of errors, omissions, negligence, breach of warranty and even implied warranty of merchantability are more opaque.
Earth Day is an annual event celebrated worldwide on April 22 since 1970. The commemoration highlights the importance of preserving natural resources and protecting our planet.
You’ve completed your pre-flight check and are getting ready to take off. But have you thought of everything? Whether your aircraft is brand new or you’ve owned it for many years, have you verified that you would be fully covered in the event of a loss?
Let’s imagine that, unfortunately, you experienced a loss, incident or accident during which your insured aircraft sustained physical damage. Whether it results in a “total loss” or a “partial loss,” it is commonplace that after the adjustment and settlement of the physical damage insurance claim, the aviation insurance provider’s claim handler prepares to tender its payment of the physical damage loss to the policyholder (the “named insured”) and any additional loss payee(s) endorsed under the aviation insurance policy, unless otherwise directed.
The cost of aviation insurance, like all insurance, is driven by risk factors. The higher your risk of being involved in an incident, the higher your insurance premium will be. The good news for aircraft owners and operators is that there are steps you can take to show the underwriter reviewing your insurance application that you pose a lower risk. In doing so, you can “earn” a better insurance premium.
The processes for adjusting and managing aircraft insurance claims have not changed significantly in recent decades. Depending on the extent of the damage, most hull claims have typically involved an adjuster being on site within a few days of an accident to assess the damage and plan for necessary repairs. However, in a world in which we are increasingly time- and cost-sensitive, as well as environmentally conscious, change is afoot.
When people think of aircraft insurance, what typically comes to mind is cover for accidents, hard landings and the like. In fact, most “technical” pricing of aircraft insurance uses only operational statistics and basic exposure data points (aircraft values, passenger numbers, etc.) to determine equitable premiums.