Commercial aircraft pilots are required to log up to 15,000 hours of flying experience before they are allowed to fly a commercial plane. These massive aircrafts can weigh up to 90,000 pounds and cruise at speeds up to 575 miles per hour, making for an utterly devastating situation should the worst happen. Therefore, pilots and aircraft carriers should always have proper aircraft insurance coverage that they regularly review and renew.
Commercial Aircraft Insurance Renewals
When it comes to renewing an insurance policy, there are many things to consider, such as whether the past coverage is still adequate and the policy is a good value. It is beneficial for those who own and operate commercial aircrafts to know in advance what to expect when renewing aircraft insurance.
Aircraft renewals should rarely be routine as the insurance marketplace is incredibly competitive. It is important to take the time to evaluate all policy options well before renewal time. Additionally, current aircraft policies should be reviewed at least once a year. When reviewing a policy, policyholders should keep the following questions in mind:
- Has the insurance company maintained a positive performance and reputation?
- Does the policy specify differences in deductibles for in-motion, not-in-motion, and moored deductibles?
- Does the policy contain any exclusions and how can those exclusions potentially limit the coverage?
- Are all pilots who fly the aircraft covered by the same policy?
- Are there any policy extensions?
What to Avoid When Renewing a Commercial Aircraft Insurance Policy
In addition to the many considerations involved in renewing a commercial aircraft policy, you’ll want to avoid the following situations in order to ensure adequate coverage is obtained and maintained during the renewal period:
Waiting until the last minute to complete the applicable forms
Commercial aircraft insurance renewal forms are typically sent out 90 days in advance of the policy expiration. While insurance companies are required to follow up multiple times to ensure the completion of these documents, it’s important for policyholders to complete them as soon as possible. When the forms are returned promptly, all information is up to date and the new policy has time to fully go into effect.
Having the incorrect information on the renewal form
Because the aviation industry is complex and has its own vernacular, it’s important that the information included within the renewal form is as accurate and detailed as possible. Missing little details on an aircraft insurance renewal can affect or prevent your aircraft from having solid and comprehensive coverage.
Being vague on policy applications
While it’s not uncommon for policyholders to leave certain questions on policy application forms blank or half-answered, it’s better to be as detailed as possible. This is because these questions are intended to identify any potential areas of exposure that could require additional coverage. Often, additional coverage can be added through a policy extension at no additional cost or for a limited additional cost. Even if there is a cost, it’s best to pay for all the coverage needed.
The Importance of Aircraft Liability Insurance
Just as with operating a commercial vehicle, it’s incredibly important to have adequate commercial aircraft liability insurance in place. Commercial planes are massive structures that move at high speeds miles above the ground, often carrying large amounts of cargo and even passengers. These factors alone make it incredibly important for commercial aircraft carriers to have adequate liability insurance in place.
Aircraft liability insurance is necessary because any claims that arise out of the ownership, maintenance, or use of an aircraft are generally excluded under standard commercial general liability policies. In certain instances, businesses may choose to use a private aircraft in their operations but still purchase aircraft liability insurance to cover any potential liability issues that may arise.
It’s important to note that aircraft policies are not standardized and can vary widely. While some insurers offer policies that combine aircraft liability and hull with other aviation-related coverage, others do not. For instance, some aircraft liability policies may provide additional coverage for passengers’ personal items, as well as liability indemnification for the hangar in which the aircraft is stored. Additionally, some policies may provide coverage for injuries sustained while the aircraft is in operation, the cost of any emergency landings, as well as the costs associated with search and rescue operations. Because aircraft liability policies can vary on such a wide scale, it’s important to have an experienced commercial property insurance coverage attorney review them to ensure all coverage needs are met.
Commercial Property Insurance Coverage Attorneys
Aircraft property damage claims are often complex and can involve damage to an airplane or air facility, making the potential cost of damages incredibly high for plane and facility owners. While an aircraft owner’s insurance company is technically paid to stand by the insured when damage occurs, they too often don’t. At Raizner Law, we understand just how frustrating these situations can be. If your aircraft or travel facilities have been damaged, we can help. Contact us today to see how we can best assist you and evaluate your claim.
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