Common Questions
Navigating the world of aviation insurance can be complex and we know good help can be hard to come by sometimes. We are here to help, by sharing our knowledge with you. If we still haven’t answered your questions below, please reach out, we’d be happy to chat.
What is the role of an Aviation Insurance Broker?
A specialist aviation insurance broker plays a critical role in ensuring you and your assets are adequately protected.
We start by conducting a risk assessment to evaluate your aviation operations and exposure to risks.
With our understanding of the nuances of aviation insurance, we then design, source and negotiate the best coverage from multiple insurers and match you with the most suitable coverage and premium. It is important to remember that we work for you, the client, not the insurer.
Along the way, we provide advice and guidance on policy wordings, exclusions, and endorsements, your customer contracts and help understand technical terms and regulatory requirements.
If the unforeseen occurs, we assist you with filing and managing claims, acting as an advocate during the claims process to ensure fair and timely settlements.
Why should I choose an aviation insurance broker over a general insurance broker?
For the same reason you wouldn’t take your aircraft to a car mechanic to get it fixed.
- Expertise: Aviation Insurance Brokers specialise in the unique risks associated with aviation. We have in-depth knowledge of the industry, policy coverage and can provide tailored advice and solutions.
- Market Access: Brokers have access to a wide range of insurance markets and can negotiate the best terms and coverage options on your behalf.
- Claims Assistance: In the event of a claim, an experienced broker can provide valuable support and advocacy on your behalf, ensuring that the claims process is handled fairly and efficiently.
- Cost Efficiency: We can help you find the most cost-effective coverage by comparing different policies, negotiating premiums and negotiating with most appropriate insurers who have the right appetite for your risk.
- Regulatory Compliance: We ensure that your insurance coverage meets all regulatory requirements and industry standards, which can also include unique international regulatory requirements.
How many insurance companies are there?
In Australia there are currently seven specialist aviation insurance companies that we can approach on your behalf to seek quotes & coverage. Most of these insurers are ‘broker only’ meaning you need to engage with an experienced aviation insurance broker to access these insurers. Outside of Australia, we also have access to dozens of international markets through Asia and Europe to seek alternate options if the Australian insurance market isn’t suitable or able to cover your risk.
How much does aircraft insurance cost?
Premiums are based on a combination of several factors, including:
- Agreed value Hull premiums are calculated on the agreed value of the aircraft. For example, if an aircraft is valued at $1,000,000, the hull premium might be 1% of the value, resulting in a $10,000 premium.
- Type and construction of aircraft: Different aircraft types have different risk profiles. Insurers use historical data and underwriting experience to predict the likelihood and cost of claims.
- Utilisation: How the aircraft is used (i.e., private, commercial, flight training or high risk uses like mustering or firefighting)
- Pilots The relevant experience of pilots and claims history is factored into insurers’ rating of the premium.
- Passenger Seats The number of passenger seats dictates liability premium amount and whether the aircraft is used for private or commercial operations.
- Coverage Limits: Higher liability limits or higher aircraft values result in higher premiums.
The insurance market works in cycles, similar to any other financial market, so premiums and rating structures change all the time. Submit a complimentary quote request and we’ll be happy to give you some up to date and accurate figures.
How do I make a claim and will it impact my premium?
Contact us as soon as it’s practical after you become aware of the incident and we’ll help you lodge the claim with your Insurer. We are available to help you out of hours on +61 412 583 710
Not all claims will impact premiums and often are dictated by circumstance, for example, natural disasters or weather events which are out of your control may not necessarily cause an automatic increase.
Check out our claims page for some additional information.
Do you offer coverage for international operations?
Absolutely. Infact this is an area of the aviation industry that requires a high level of working aviation insurance knowledge.
We have supported many of our clients over the years with international operations, including providing coverage into war zones and helping them comply with international regulatory insurance requirements.
How do I get a quote?
You have a few options:
- For certain risks, you can get a quote via our online quote page
- Fill out our online form
- Call us directly and we can help over the phone
- Email your aircraft and pilot details
Depending on the complexity, urgency and your individual needs, we can turnaround quotes on the same day.
My aircraft is with my engineer for a long period of time, do I need cover for my aircraft?
You should consider maintaining ‘ground risk only’ coverage to protect your asset. Premiums for ground risk coverage are at a much lower rate than full flight risk coverage.
Avoid making assumptions about any insurance that the maintenance organisation may hold, as it will not automatically cover your aircraft if it’s damaged whilst it’s in their hangar.
Am I covered by my motor vehicle insurance whilst I'm driving airside
General Motor Vehicle Insurance policies will contain exclusions relating to vehicles used airside. Aviation Liability Insurance coverage is designed to include cover for registered and unregistered vehicles whilst operating airside. It’s important to consult with your broker around the coverage options.
What are the Key Features of Aviation Hull and Liability Insurance?
• Coverage for Physical Damage: Protects against damage to the aircraft itself.
• Agreed Value Basis: The claims settlement is based on the value agreed upon at the policy’s inception
• “All-Risk” Coverage: Provides broad protection against a range of risks, with fewer exclusions compared to named or specified peril policies.
• Third-Party Liability: Covers legal liability claims for bodily injury and property damage to third parties on the ground or in the air.
• Passenger Liability: Provides coverage for passengers whilst embarking & disembarking, whilst on board and their baggage.
• Combined Single Limit Coverage: In general aviation and most commercial operations, a single, combined limit of liability applies to both third party liability and passenger claims so you need to set an appropriate limit of liability to cover both.
What are Common Exclusions in Aviation Hull and Liability Insurance?
• Wear and Tear: Damage due to normal wear and tear is typically not covered.
• Time remaining on life components When a ‘time life’ component is damaged and needs to be replaced or overhauled, the insurer will only cover the cost proportional to the remaining useful life of the component. The insured is responsible for the portion of the cost that corresponds to the used life of the component. Special coverage endorsements can be negotiated to remove this exclusion and costs additional premium depending on the aircraft type.
• Mechanical Breakdown: Failures due to mechanical issues not caused by an accident are excluded, however, any resultant damage to the aircraft from a mechanical breakdown is typically covered.
• War and Terrorism: Malicious acts of war, hijack, sabotage and terrorism are excluded unless specifically endorsed into the policy.
• Contractual Liability: This exclusion means that the insurance policy does not cover liability that the insured has assumed under a contract or agreement unless it would have applied to you under common law anyway.
Any agreements entered into by the insured party should be reviewed by an aviation lawyer and a specialist aviation insurance broker to ensure you are properly informed about any indemnity and liability exposures which may or may not be insurable.
Are pilots covered by the insurance?
Most aviation insurance policies include liability coverage that protects the Pilot (and sometimes crew) from third-party claims arising from an accident. In these instances, Pilots are generally considered an “insured person”. However, in respect to hull damage there are important nuances in aviation insurance policies which may expose the pilot to a claim by the owner, or their Insurer.
Separate Personal Accident Insurance should be considered as Pilot injury/death is not covered under the Aircraft Insurance policy. Quotes for this coverage can be obtained here