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.
Types of insurance
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.
Aviation insurance rates can be affected by the vagaries of the stock and investment markets, insurance claims unrelated to the aviation industry and historic peaks and valleys in policy pricing. And further cost pressures are added because the number of aviation insurers continues to decrease.
Following last September 11, aircraft owners and operators began bracing for massive hikes in insurance coverage and changes in the limits of that coverage. Now, a year later, their fears are being realized. But while rates have risen, sometimes triple those before September 11, the increases are not without some justification. The question is, just how much is justified?
Eclipse Aviation announced that it will partner with underwriter Global Aerospace Underwriters to provide hull and liability insurance to owners of owner-flown Eclipse 500s.
If aviation insurance news has been mostly bad since September 11, there is still one small bright spot in the industry. Life insurance premiums for corporate pilots have either remained stagnant or actually decreased since last September. And aviation operators have an increasing variety of choices for providing life insurance for their employees.
“In the next 60 to 90 days, you’re going to see security in the United States like you’ve never seen before,” said retired U.S. Navy admiral Isaac Richardson in late June. “A portion of the nation’s reappraisal took a very hard look at general aviation…and the threat posed by general aviation aircraft as weapons.”
Insurance underwriter Global Aerospace will partner with Eclipse Aviation, manufacturer of the Eclipse 500 personal jet, to provide hull and liability insurance to owners of the new five-passenger personal jet.
Travelers’ aviation unit last month introduced a new workers compensation insurance program for corporate flight departments. According to the company, its aviation workers compensation program will provide “top-quality workers compensation coverage” for general aviation flight departments–including pilots, ground crew and administrative staff–to help keep rising loss cost trends under control.