Owner's cheat sheet for aircraft insurance

Insuring your aircraft is no easy task. It’s a substantial investment, and understanding the ins and outs of the insurance industry can be confusing to put it mildly.

What’s more, comparing insurance policies is rarely an apples-to-apples affair. But to make things a bit easier, here’s a simple checklist to help you navigate the process.

Coverages

• Is your liability limit smooth or with a sublimit? If with a sublimit, is it per passenger or per person?
• Does your hull coverage include “in motion” and “not in motion” incidents?
• Are medical payments provided under the policy? If yes, do they include the crew?
• What’s the scope of the covered territory and does it meet your needs?
• What’s the approved use under the policy and does it cover your flight operations?

Policy Details

• What deductibles would apply?
• Who can fly the aircraft? Does it include FAA-approved repair stations?
• Can I charge others for the use of my aircraft?
• Is there coverage for me if I rent or borrow an aircraft owned by others?
• Does the policy provide coverage for FAA ferry or special permit flights?
• What’s the airworthiness requirement?
• Are any premiums partially or fully earned at time of coverage inception?
• What are my obligations under the terms of the policy?
• What’s the notice of cancellation clause?
• Do I need to request coverage for additional parties (lienholder, landlord, etc.)?

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