Liability coverage is typically sold as combined single limit (CSL), which includes the coverage of damage to third party entities and property, as well as passenger liability coverage of your passengers\u2019 injuries and final expenses in the event of a fatal accident. Typically, light helicopter policies begin at $1 million in liability coverage. However, depending on the aircraft, the pilot(s), and how the aircraft is operated, it is possible to obtain $10, $25, $50, or even $100 million. Hull coverage<\/strong><\/p> Hull coverage can cover the full value of the aircraft, whether it is on the ground, in motion on the ground, or in flight. Depending on the financing of your aircraft, you can often opt into one, two, or all three of these options. What determines how much coverage I can get and the cost?<\/strong><\/p> Several factors figure into the cost of liability and hull coverage. For first-time helicopter owners, the largest factor tends to be pilot experience. What kind of insurance should I get?<\/strong><\/p> Ideally, a new owner will want to purchase liability and hull insurance to protect themselves from crippling litigation in an accident and recover the cost of the aircraft. What if I can\u2019t get insurance?<\/strong><\/p> While insurance companies are turning down more and more pilot owners for insurance based on their experience, there are ways to lower the risk and obtain insurance. Ritter says hiring a pilot qualified in type who will always be second-in-command whenever the pilot owner flies can help secure insurance and lower premiums. Do I have to have insurance?<\/strong><\/p> In Canada, every aircraft registered or operated in the country is required to have liability insurance that covers public liability and risks of injury to passengers. Knowing in advance what your annual insurance costs will be helps you make an informed purchase decision.<\/p>\n","protected":false},"author":2,"featured_media":10186,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[79],"tags":[],"class_list":["post-10192","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buying-a-helicopter","entry"],"acf":[],"yoast_head":"\n
This insurance can cover the total cost of an accident or incident up to the coverage amount, or, as is more common, can be sublimited per passenger. Sublimited coverage will note the limit of coverage for each passenger. For instance, a $1 million policy could have a $100,000 per passenger limit. Each passenger is entitled to up to $100,000 if they are hurt or die. The remainder of the $1 million would cover damage to property or others outside the helicopter.<\/p>![\"\"](\"https:\/\/assets.helitrader.com\/wp-content\/uploads\/2023\/03\/Rectangle-130.jpg\")
Hull coverage is the more expensive of the two insurance options. This insurance is designed to fully repair or replace your aircraft and its onboard equipment. The value of the aircraft and all of its onboard equipment is factored into determining the full policy coverage.
It is typical for annual hull coverage premiums in the U.S. to range between five and 10 percent of the value of the aircraft, says Rod Ritter, president of Velocity Insurance Group. Similarly, your hull deductible can be between five and 10 percent of the aircraft\u2019s value, depending on the situation.
This means, if you had a $1.5 million policy on a helicopter, your annual hull coverage could be between $90,000 and $125,000.
These prices are considerably lower in Canada due to a lower instance of litigation and full insurance coverage awards, said Ritter.<\/p>
\u201cCost and liability limits are almost always dictated by the experience of the pilot,\u201d noted Ritter. \u201cIf you were a brand-new pilot hoping to learn to fly in your new aircraft, or you are a low-time piston helicopter pilot transitioning to your new turbine helicopter, you\u2019re going to be looking at much higher premiums than a pilot with thousands of hours and several hundred in type.\u201d
Other factors that are considered in premium costs include how the aircraft is stored, how much it flies a year, and the aircraft\u2019s typical use.
Ritter offered an example of a 500-hour piston pilot purchasing a used, light single-engine turbine aircraft. This pilot could secure a $1 million liability and full hull coverage for between six and 10 percent of the hull value. That insurance would also stipulate a minimum number of annual hours of recurrency training from a third party approved by the insurance company, whether that be a pilot, a flight training company, or the helicopter factory school.<\/p>![\"\"](\"https:\/\/assets.helitrader.com\/wp-content\/uploads\/2023\/03\/Rectangle-130-2.jpg\")
Be aware, however, if you are financing your aircraft; your financing institution will have its own insurance requirements, including minimum coverage amounts. They\u2019ll want to ensure they\u2019re protected from any potential litigation and, in the event of a complete or partial loss of the aircraft, that their loan balance is covered and can be paid off with the insurance proceeds.
\u201cWhen there is an accident, your insurance is the first source of cash to pay for damages, injuries, and death,\u201d said Jarrod Burton, senior vice president of Echo Aviation Leasing. \u201cIf that is not enough insurance, lawyers could look to go after the bank, finance company, or leasing company, which could also be named in a lawsuit. For this reason, your finance institution may dictate the type of insurance you have and that they be listed as an additional insured and first loss payee on the policy.
\u201cSame thing if you lease the aircraft. You\u2019ll need to list that company. Some insurance companies don\u2019t charge to have additionally insured. Some do. It\u2019s important to know all the parties and how they\u2019ll be involved in the insurance to get an accurate insurance quote.\u201d<\/p>
Another option, according to Burton, is to consider having the aircraft managed by a company with an operational history and ask for it, and the pilot owner, to be added to the company\u2019s insurance. An established helicopter operator with a training program and currency requirements for its pilots could add the aircraft and the owner pilot to its insurance with a lease agreement, then ensure the owner pilot receives the training and currency required to fly the aircraft under the terms of the insurance, he added.<\/p>
In the U.S., however, there is no law requiring insurance. The provider of your financing will have requirements, however.
Some owners with the financial means will choose to decline hull insurance, opting instead to self-insure.
Choosing to opt out of liability insurance is another story.
\u201cA lot of people are surprised at the cost of insurance, and I have had clients say they aren\u2019t concerned about liability or that they don\u2019t want the liability because the insurance company is requiring annual recurrency training,\u201d said Ritter. \u201cI understand recurrent training can be expensive, but it serves a higher purpose than allowing you to have insurance. It\u2019s very valuable training and helps increase your own safety and reduce risks of a terrible accident. When a client pushes back on that, it is a big red flag and will turn away insurance underwriters.
\u201cMy advice is to invest in a good third-party training company and utilize them to maintain your proficiency and build your skills. How well trained you are is one of the largest factors in determining whether underwriters will provide coverage with large limits at a good rate.\u201d<\/p>","protected":false},"excerpt":{"rendered":"