There are several definitions of "vicar-


ious," but what is meant here is the liabil- ity the airport incurs simply because it owns and/or operates the facility. The owners do not have direct control of your helicopter, but if your operation causes damage to someone on the ground and the injured party somehow feels the airport is at fault, the airport would want to have been included on your policy. Since al- most all airports carry (or should carry)


siderable assets, the attorneys working on their behalf may be fighting for that com- pany's very existence. They likely will not wish to settle and will make use of the en- tire defense funding available — funding that will come out of your policy.


to its own negligence, then your policy should not have to pay for this. It is the responsibility of any shop to carry its own insurance policy to covers its operation. It is not inexpensive, but it is an important part of that company's livelihood. Something else to be aware of is the


Your policy is required to pay for both


their own liability policy covering their exposure, this situation is not usually a problem for the insurance companies. One detail you should keep in mind is


that having an additional insured dilutes your coverage. The limits of the policy are the limits, no matter how many additional parties are included. If you have a $1,000,000-each-occurrence limit with $100,000 per passenger, the policy will only pay out that amount one time — not one time for each insured.


In some cases, your employer (for non-


commercial owners), or client (for com- mercial operators), may request to be included as an additional insured. One of the major concerns for insurance compa- nies here is that most policies allow for unlimited defense in the course of settling a claim. If there is a loss when you're fly- ing on company business, the attorneys representing you may offer a settlement. However, if your employer/client has con-


insurance company or agent will ask for details about an additional insured's rela- tionship to you and why that party needs to be included on your policy. Having ad- ditional parties covered on the policy may reduce the desirability of writing your pol- icy, so be sure each additional insured re- ally needs to be included and that the underwriter is aware of the request(s). I mentioned in an earlier column that


the maintenance shop you patronize might ask to be included as an additional insured. In a very broad view, insurance companies do not want to add them to your policy. They may make an exception if the same carrier also writes the policy for the shop and is familiar with the coverage and shop's operation. The hazard here occurs if the shop damages your ship due solely


sets of attorneys. (Due to the way things work, the same attorney(s) cannot provide defense for both parties.) Add a third ad- ditional insured here and you can see that, in a worst-case scenario, an insurance company could literally spend itself into a very bad situation. This is why a diligent


"waiver of subrogation." This means you and the insurance company give up your


rights to recover a loss from those who are directly responsible for the loss to your helicopter. It is important to note that if your hangar rental agreement includes a paragraph that says you will waive your right of subrogation back to the hangar owner, this may be in violation of your in- surance policy. If a hangar operator is moving your ship and inadvertently runs it into the hangar door, for example, it is the responsibility of the company operat- ing the tug to repair your aircraft, not your insurance company’s responsibility.


Article compliments of Leading Edge Insurance Agency, written by Jeff Fleming.


Fly Safe! Be Safe!


rotorcraftpro.com 21


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54