Making an informed decision on big purchases is important. Just like you want to ensure you purchase the right aircraft to meet your needs, you want to purchase the right amount and type of liability coverage to meet the needs of your company, or you as an individual.
Look at the aircraft in your hangar. Did you purchase the cheapest aircraft, or did you buy the aircraft that met your needs and was the best value to service those needs? When you own or operate turbine aircraft it is important to extract the maximum value from your insurance program. Did you know there are over 35 line items to take into consideration when deciding which policy is right for you?
Be an informed buyer. Think strategically about your operation and the exposures to property damage, bodily injury, personal injury, and financial impacts that could be incurred. Make a decision about which perils you are comfortable assuming and which exposures you wish to transfer to an insurance policy. Go beyond securing the correct ancillary coverage; purchase the right limit for that coverage.
When you are taking a look at the “big picture” of your risk profile, be sure to consider contractual obligations you have assumed and the other lines of coverage you may have in force. Contracts and other policies you have for your business or family could have an impact on your aircraft policy.
One example is having the same coverage under two different policies. It is imperative you evaluate all of your policies to find the coverage overlaps and the “if you have coverage somewhere else” terminology. If you fail to do this, you may find yourself in an expensive battle with your lawyers working to convince the insurance companies to cooperate with each other and settle your claim. There are many coverage overlaps our industry fails to address.
Not only could the following examples be coverage “overlaps,” but they are also part of identifying your risk profile in deciding which aircraft policy to buy: Premises Liability, Non-Owned Aircraft Liability, and Contents Coverage. It is important, whether you are a business or an individual, to make sure all of your policies are aligned with each other and working in a concerted effort as to not unintentionally undermine one another. Additionally, by reviewing your policies and streamlining the coverages, you may see a premium reduction and have a more comprehensive policy in place.