How to Read your Aircraft Insurance Policy

Congrats! You have purchased your very first aircraft and obtained a low premium through Aviation Insurance Resources (AIR)! You are now provided with a 30+ page aircraft insurance policy, but don’t let it overwhelm you! Today, we will break down the important parts and what you need to know:
Declarations – After the cover pages of the policy (if applicable) are the declarations, essentially a breakdown of the coverages in your policy. Here you will find information on who the policy is issued to, the policy number and effective dates. The declarations also usually contain the liability limits of the policy, aircraft information, and the aircraft hull value if physical damage coverage was purchased. Any applicable deductible will be listed here along with when physical damage coverage is offered (Ground & Flight, Ground Not in Flight, or Ground Not in Motion).
Insuring Agreements – The insuring agreement section of your aircraft insurance policy lists the insurance carriers promises to you. This is what the insurance policy will pay in the event of a loss. This area summarizes the protection provided to you for liability, medical expenses and physical damage. It also goes over the defense provided if you were to become liable for injury to a person or property.
Conditions – Your obligations are covered under the conditions section of the insurance policy. These paragraphs list requirements for coverage to be provided. How to file and document a claim are described in the conditions of your policy.
Exclusions – This area of your policy is exactly the way it sounds. It lists what is specifically excluded from coverage in your policy. If your aircraft is for pleasure and business use only, you’ll often notice that operations for commercial use and hire are often listed under the exclusion area.
Definitions – Throughout your policy you will notice words highlighted in bold. This signifies that this word has a specific meaning to the insurance carrier and its definition within your policy. This section of the policy will define important words in your policy such as:
Insured – who qualifies as an insured under this policy?
In flight – what is required for the aircraft to be considered in flight?
In motion – what is required for the aircraft to be considered moving?
Passenger – who qualifies as a passenger?
…and more
Endorsements – Usually placed towards the end of your policy are endorsements specific to your particular aircraft policy. They contain information such as the pilots allowed to fly the aircraft and any training requirements, lienholder information if there is a loan on the aircraft, list any additional insureds such as an airport and special expanded coverages. These endorsements amend policy wording which can delete or greatly add coverage. For example, non-owned aircraft coverage is usually found within these endorsements.
If you have a question about an item in your policy or can not find something you are looking for, call the pilots and agents at AIR. We will walk you through it! AIR works with all the major aviation insurance carriers and each policy has its differences. It is our job to provide you with the broadest coverage and lowest rates. Give us a call at 301-682-6200 or visit us online to talk about your aircraft insurance policy today!