With the country in mourning for the tremendous loss of life from the terrorist attacks, the financial loss seemed to pale by comparison. But as Americans began to recover from the initial shock, the economic concerns loomed darker, and the insurance industry was among the first to feel the fiscal effects. It was also one of the first to put measures into effect to minimize losses and recover from the economic blow.
Financing, Insurance and Taxes » Aviation Insurance
Issues regarding aviation insurance.
Travelers Aviation has increased its aircraft hull coverage limit to $50 million. The new ceiling will allow Travelers to insure larger general aviation aircraft, including jets such as the Gulfstream G550, Falcon 7X and the Bombardier Global Express. Both Travelers Flight Plan Preferred and Travelers Flight Plan Premier policies will now have capacity to insure this new hull limit for eligible accounts.
Travelers Aviation, part of The Travelers insurance company, made its debut at the 2007 AIA convention at Indian Wells, Calif. This year in Nashville, Gordon Murray, its president, told AIN that in the past year Travelers has booked premiums in the millions of dollars and continues to look for opportunities. “The marketplace out there is competitive.
Despite the economic uncertainty in the U.S. and abroad, the mood was decidedly upbeat at the Aviation Insurance Association (AIA) convention April 26 to 29 at
the Gaylord Opryland resort in Nashville. In fact, due in part to the downturn in financial circles, aviation insurance–a truly worldwide industry–has been experiencing a mini-boom that is benefiting the insured, large and small.
Value Added Tax (VAT) and import duties for aircraft currently stand at zero percent in Denmark. This allows international operators to avoid tax by basing their aircraft in Denmark. However, zero-rated VAT is in contradiction with European law and pressure is mounting on Danish legislators to adjust their taxes upward.
In the months since September 11, the insurance industry has taken a beating. Some estimates–and they are still just estimates–put the total losses in excess of $100 billion.
Within days of the terrorist attacks, it was apparent that efforts by insurers to cope with the disaster would translate to higher costs and changes in coverage limits. So far, this is being proved out.
You roll up to an FBO in a multi-million-dollar business jet, and they roll out the red carpet. Your passengers disembark and you stroll into the office. There, the smiling customer service representative hands you a document. “It’s just our standard hold-harmless agreement,” she says. “We need your signature.”
Someone I used to know–a father and general aviation pilot–questioned why he needed life insurance, because, quote, “I won’t be around to enjoy it.” He could well afford it, but apparently his survivors’ welfare didn’t warrant the few bucks a month a policy would cost.
So called “showstoppers” insurance, a form of business interruption coverage, will likely help NBAA recover some of the expenses and lost revenue the association incurred when it postponed last year’s annual convention from September and moved it to December. The NBAA Convention has always been covered under showstoppers insurance, but this is the first time the association is making a claim.
With regard to liability insurance, answers to the question of “How much is enough?” have always been something of a mystery. But for shareholders in a fractional program, the answers are compounded by the concept of shared ownership.