Aviation insurance is a grudge purchase. Let’s face it if we didn’t have to buy it we wouldn’t. We’re also all optimists when it comes to the likelihood of an ‘accident or incident’, so why buy cover?

The answer is really the same reason you’d buy any insurance product.

In this day and age litigation is becoming the norm so there is a need:

a) to protect your hard-earned asset or much loved toy (depending on your perspective), from the slings and arrows of outrageous fortune;

b) to protect the rest of your assets in the event of injury or loss to a third party or your passengers;

c) to provide some peace of mind whilst piloting your aircraft. Working on the assumption that you’ve made the sensible decision to insure there are a number of considerations you need to take into account when assessing an insurance products.

Choosing The Right Insurance Policy
Due to recent acquisitions or mergers, aviation insurance policies and the coverage they provide may have changed due to new policy wordings being issued or re-written.

It would, therefore, be prudent to ask your insurance representative to assess your current coverage and ensure that any new cover offered (whether it be your current underwriter or an alternate) is suitable for your requirements.

Since every aircraft owner has different coverage needs, be aware that the cheapest priced policy may not provide the best protection.

Further, there are many clauses that can be added to your policy (usually at no charge) which may provide a more comprehensive cover, however, these clauses will only be included if you or your insurance representative request them from your underwriter.

Check Your Insurer's Stability
As with other types of insurance you purchase, the financial stability of your aviation insurance company is important. Ask your insurance representative to provide you with the A.M. Best’s or Standard and Poor's (or equivalent) rating for the insurance company you are considering.

A rating agency rates insurance companies on their financial strength and claims paying ability. Recent changes in ownership of insurers has significantly improved the quality of some of the participants in the market, but it’s always good to know who you’re dealing with.

Thinking Of Cancellation As No Coverage Required
You may wonder why you need aviation insurance whilst your aircraft is grounded, may not be flown for the foreseeable future and is safely hangared. A ground risk only cover covers your aircraft should the hangar owner be found not negligent, that is, all care was taken whilst the aircraft was in their care, custody and control but damage was still sustained due to windstorms, hangar fires, vandalism, etc which is where your ground risk insurance should respond.

Carefully consider your exposure before dropping any coverage.

Don't Sell Yourself Short
Think twice before underinsuring your aircraft to save a little money. Don’t insure it for less than you paid for it, or for less than it would cost to replace it.

Make sure your limits are sufficient and bear in mind that aircraft tend to appreciate rather than depreciate. Insure Your Upgrades

Ensure that sufficient cover is in place should you make any improvements to your aircraft. These can include installation of new avionics, a new engine or overhaul, general refurbishment, etc.

Review Your Limits Of Liability Liability insurance protects you against claims arising from injury (including passengers) or damage you may have caused to others or their property. There is no minimum requirement under Australian law and, although, it is purely an individual decision a reasonable sum ought to be purchased. And lastly – does your insurance broker understand what they are talking about (shameless plug here)…... Better to have a broker that flies and understands not only the risks, but the aircraft as well.

How can you obtain a quotation?

Contact either Joyce Cutajar or Erin Smith on 1300 85 APEX (2739) or via email.

Email: Joyce Cutajar at:  This e-mail address is being protected from spam bots, you need JavaScript enabled to view it   or Erin Smith at: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it