Many uninformed aircraft owners view their aircraft insurance the same as their auto, home, or business insurance. They see it as a necessary evil in doing business and put little energy into working with their aviation insurance broker to fine-tune the details of their coverage. This is a huge mistake; one that will hopefully not come back to bite them. Unfortunately, the only test available to find out if your policy was constructed correctly is to actually have a loss. This is when the time bomb’s counter can reach zero and the consequences could be dire for you or your business.
Non-standard police forms
A little understood fact about aviation insurance policies is that they are all written on non-standard policy forms. To the layman, this means that each insurance company that purchases aviation coverage has a different policy form. Some are MUCH wider than others. The aviation insurance broker must have detailed knowledge of the needs of the insured and be intimately familiar with the wording of the aviation insurance policy and the coverage offers of each aviation insurance company in order to develop a policy as well. bulletproof as possible. There are many changes that an insurer will make to expand the coverage of their insurance contract, but you have to know how to ask for them. Coverage granted or denied literally boils down to the difference in a word between the policy of one insurance company and that of another.
Call on the bomb squad
We have reviewed many aviation insurance policies that have been sent to us by clients who were previously with another insurance broker who did not understand aviation, and it is simply astonishing how many are poorly or poorly constructed. . Really, time bombs that may never be discovered. So what steps can an airplane owner take to tip the scales in their favor? Your mission should be to seek out the most professional and experienced aviation insurance broker you can find to represent you or your business in the insurance market. Second, if your current broker isn’t asking questions or looking for updated information every year when renewing, you’ll probably want to consider switching to one that does. Finally, the weight on the insurance market. Although big is not always better, a broker with a high volume of business with insurers will normally be more successful in negotiating on behalf of his client than a broker with a low volume. Simple but true logic.
Ultimately, because aviation has such a stellar safety record, even if you have a policy that IS a time bomb, the odds are in your favor it won’t go off – unless you are. one of the unlucky ones your number called. an unexpected plane crash. So, action taken now can save your financial future. You can act or ignore it, at your own risk. An AssuredPartners Aerospace broker would be happy to be your CIS to help you navigate the “weather”. Visit ap-aerospace.com/own or call 800-622-2672 today to speak to one of our experts.