Common, costly misconceptions
A pilot takes a personal financial risk every time he or she flies a non-owned aircraft for instruction, pleasure, volunteering or contract hours. What’s more, when aviation services are provided outside of work hours, the pilot becomes subject to personal liability. The employer could actually turn around and sue the pilot personally for damages or losses that they incur as a result of incidents.
“But doesn’t the owner’s insurance cover me?” Too often, that’s a question asked by pilots after an incident. It’s a common misconception, and a costly one at that. A pilot may have traditional insurance policies in place, either from an employer or individually, yet the pilot is likely still exposed due to exclusions or gaps in these policies. Aircraft owners can seek reimbursement from pilots for the deductible and increased insurance premiums, and owners and pilots are separately liable for accidents under FAA regulations. Even student renters are under the misconception that they’re covered under the training facility’s plan. Some would think that flying safe and with an instructor means a student pilot cannot be held liable. Think again.
Unfortunately, after an incident, there’s a lot of blame to go around, and it could land on the pilot or even a student pilot. “When an accident happens, claimants are looking for multiple sources of compensation, and that includes the personal estate of the pilot involved, whether alive or dead,” says Rick J. Lindsey, president, CEO, and chairman of Prime Insurance Company, an excess and surplus lines insurance carrier that specializes in providing solutions for specialty and declined risks. Legal defense may fall short for the pilot as well. While the owner’s insurance normally provides a legal defense for the pilot, it’s only to the point where there was no conflict of interest and only up to the limits of the corporate insurance coverage.
84 Nov/Dec 2019
Protecting against unpredictability
Just as preparedness is part of any pilot’s training, so it should be when it comes to a pilot’s livelihood and assets.
“No pilot should ever fly without personal pilot liability insurance,” says Lindsey. “As a pilot, you get to experience a freedom unknown to most, and with such a unique lifestyle, you need unique liability coverage to protect yourself from a litigation-happy society.”
Helicopter and aviation liability insurance from a trusted insurance company can help circumvent limits, exclusions, and gaps in the pilot or employer’s traditional insurance policy. Xinsurance, offered by Evolution Insurance Broker through Prime Insurance Company, says it provides affordable, supplemental coverage that fills the gaps and seals the cracks in traditional policies for small aircraft of all kinds. Coverage for startup businesses, first- time insureds, non-union shops, and pilots who are approved to operate, but not covered under business liability, are also considered. Certified flight instructors, AMTs, owners, fractional owners, FAA Designated Pilot Examiners, and private contractors can also obtain this coverage. Prime Insurance Company is rated “A” by A.M. Best, indicating it is financially stable. Prime has offices in Salt Lake City, Chicago, Naples, Florida, and West Chester, Pennsylvania. It has strategic relationships with some of the world’s premier insurance organizations including Lloyd’s of London, Berkshire Hathaway, Gen Re, and RLI.
Xinsurance offers 30-plus years of diversified underwriting experience for specialty risks in all 50 states, including helicopter and aviator liability insurance. The company says it features flexible underwriting, risk management expertise, and outstanding claims results for difficult risks, with consideration for good risk management practices.
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 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92
