Aviation Business Owners: Yes, you do need to carry Workers’ Compensation!

January 26th, 2017

Do you have one or more employees at your company? Did you know that you are required by law in most states to carry workers’ compensation insurance? Even if you contract workerefueling jpg smrs, you may still be required by your state to cover their on-the-job risks!

Each state carries different regulations. For example, Alabama only requires workers’ compensation when four or more individuals are employed and defines officers and members of an incorporation as employees. In Iowa LLC members are not included as employees. Trucking company owners and operators in Indiana are excluded from workers’ compensation law as are agricultural business with low payrolls in Kansas. Some states allow businesses to self-insure while others would have to file for an exemption. Of course, laws are always changing and it is important to stay up-to-date with insurance regulations within your state.

Most states follow regulation recommendations provided by the NCCI, the National Council on Compensation Insurance. NCCI was established to gather industry data and use that date to provide annual reports and rate recommendations. States not following the NCCI manual may have their own fund with set rates or allow private companies to offer insurance, therefore promoting competition.

It is not uncommon for aviation businesses to run into aviation exclusions while seeking workers’ compensation insurance. That is why many companies depend on the agents at Aviation Insurance Resources (AIR). All AIR agents are pilots that are passionate about the aviation industry. AIR works with all major aviation insurance markets, finding your company the broadest coverage and the best available rates. Options like Pay as You Owe (PAYO) help business have more manageable and predictable audits.

The goal of workers’ compensation is to provide coverage for employee injuries at the workplace as well as litigation costs for the employer. Your insurance carrier will also work with your team to create a safer work environment, preventing future losses and therefore decreasing your premiums.

What do we need to get started? It’s very simple! Tell us a little bit about your operation and provide us with the number of full time and part time employees, their roles and their salaries. To request an aviation workers’ compensation insurance quote please call 877-247-7767 or request a quote online today! We look forward to serving you!

 

LSAs take to the Sky for the Sebring US Sport Aviation Expo

January 16th, 2017

In just two weeks, light sport aircraft (LSA) will descend upon the Sebring Regional Airport (KSEF) for a weekend of aviation festivities. The 13th annual expo, taking place January 25th through Sebring 201728th highlights the latest and greatest in the light sport aircraft industry. From forums to workshops and demonstrations, Sebring is the place to be for LSA owners and enthusiasts.

Items to look forward to this year are:

  • A larger indoor drone display and demonstration area including a drone race with a $20,000 cash prize and a UAS discussion panel
  • Homebuilders workshops to include building a rudder with Zenith Aircraft
  • Keynote speakers Darryl Collins and Rod Machado
  • Youth Aviator Zone with special guest NASA Astronaut Dr. Story Musgrave
  • Showcase flight demonstrations on the flightline

The agents and pilots at Aviation Insurance Resources (AIR) will be returning once again to the Sebring Expo. Light sport aircraft have a special place at AIR as the agency was one of the firsts to tackle insuring this category of aircraft when it was developed. Stop by booth NC108 to speak with Gregg Ellsworth and Joe Cacho about your light sport aircraft. Can’t make it to the show? Request your quote online or call 877-247-7767 today!

What you need to know about the new FAA medical rule and your aircraft insurance

January 10th, 2017

healthcareToday, the FAA issued the final rule reforming pilot medical requirements. This changes aims to be a practical way to allow more pilots to participate within the aviation industry. Going into effect May 1st, the new regulation entitled BasicMed requires a pilot to participate in an online medical course and complete a physical exam every four years. Per the FAA, additional pilot requirements include:

  • Possess a U.S. driver’s license
  • Have held a medical that was valid at any time after July 15, 2006.
  • Is under the care and treatment of a physician for certain conditions
  • Make certain health attestations and agree to a National Driver Register check
  • Flight not operated for compensation or hire

Many pilots have asked us how this affects their aircraft insurance. Since requirements may vary from carrier to carrier it is important that you understand and follow the verbiage described within your policy. To date, some policies don’t mention a medical requirement where others use the terminology “when required” and “if required”. It is your duty as pilot and insured to thoroughly read your policy and call your aviation insurance agent with any questions.

Time will tell the impact BasicMed will have on the aviation industry, and Aviation Insurance Resources (AIR) will be here to serve you. To discuss your aircraft insurance and medical requirements call 301-682-6200 or request a quote online today!

Aviation Insurance FAQ – Medical Limits Explained

December 29th, 2016

ambulanceQ: What are medical limits on my aircraft insurance policy? Isn’t bodily injury included in my liability section?

A: Much like an auto insurance policy, the medical coverage on an aircraft insurance policy is a coverage paid to anyone injured (including the insured) regardless of legal liability. This amount is generally used for emergency medical attention. It is not always necessary to buy additional medical coverage as third party bodily injury caused by the policyholder would be covered under the liability portion of the aircraft policy. In the case of pilot error, the liability limit applies. However, if a policy holder does not have their own medical insurance, they may decide to purchase higher medical limits in case of an injury.

Most insurance carriers offer medical payments at no additional premium while some do at a nominal charge. Aircraft policies used for pleasure and business or commercial use typically range from $3,000-$5,000 each person. Non-owned or renters insurance policies normally have $1,000 in medical coverage included with the option to increase for an additional premium.

It is important for you to discuss your insurance needs with an agent versed in these policies and who is actively involved in the aviation community. All the agents at Aviation Insurance Resources (AIR) are pilots dedicated to serving others in an industry they share a passion for. We will happily guide you through the insurance process and determine the best coverage and rate that works for your individual situation. To get started, call 877-247-7767 or visit www.AIR-PROS.com today!

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Aviation Renters Insurance – How much physical damage do I need?

December 14th, 2016

The following is an actual email conversation from December 13, 2016:

Subject: Non-Owned Aircraft Liability Insurance Renewal

I’m trying to figure out how much “physical damage” I need. All the planes I fly have either flying club insurance or on an open pilot policy, but I’m guessing that it protects the club or the owner more than me. I don’t know how much of a redundancy it is. Your thoughts?

Sean

 

Re: Non-Owned Aircraft Liability Insurance Renewal

Hi Sean,

Very good question which many non-owner pilots ask.

The insurance companies will pay the owner of the aircraft for damage caused to an aircraft. Then, depending on the policy language on the aircraft, the insurance company has the option to collect for the damage from the legally liable third party. In other words, the insurance company can collect from you if you are the responsible pilot that damaged the aircraft through your legal negligence. This is called Right of Subrogation. Also, the owner can collect the insurance deductible and loss of use cost from you.

If the flying club is an equity type club, that is all pilots are real co-owners, then the insurance company probably cannot collect from the club member. If the flying club is more of a rental operation to non-owner club members, then the insurance probably can subrogate and collect.

Some FBOs have paid additional premium to have a “Waiver of Subrogation”. This is where the insurance company agrees not to attempt collection from a renter pilot.  Many FBO managers and Club managers simply do not know what their insurance policy allows as respects the subrogation clause. You may have signed a rental agreement that states you must pay the deductible, with no mention that the insurance company will also collect from you.

As a CFI instructing an individual owner in his aircraft, then the insurance company has the right of subrogation to collect from you if you are at fault.  In most cases, you can have the owner amend his insurance policy to provide a “Waiver of Subrogation” to you by name. There should be no premium cost or small premium charge for the owner.  You should also request to be named additional insured, not just a named pilot or meeting the open pilot clause. Being named pilot or meeting the open pilot warranty simply validates the owner’s insurance for them. As the CFI, that does nothing to extend coverage to you unless you are also named additional insured and waiver of subrogation.

Most of our insureds do not actually anticipate the full value of the aircraft as a likely claim. This simply from a cost benefit point of view of premium. They figure a more likely scenario of partial damage such as hard landings, ground loops, gear ups, prop strike, etc. It depends on the type of aircraft you fly. Your current limit of $150,000 is on the high side of what most carry.  But, I recommend carrying the most you can reasonably afford.

Of course, the most important coverage is the bodily injury and property damage, what you have now is our most popular and standard limit of $1,000,000 each occurrence with $100,000 per passenger bodily injury.

I’d be happy to discuss on phone too.

John

Aviation Insurance Resources provides a full range of aircraft insurance and aviation insurance products to clients of all sizes. AIR represents all the major insurance markets and offers the broadest package of protection and the best available rates. To learn more about the Aviation Insurance Resources, please call 877-247-7767 or visit AIR-PROS.com today and receive your aircraft insurance quote! You can also follow AIR on FacebookTwitterLinkedIn, and Google+.

A Real Conversation on Aviation Insurance

December 1st, 2016

View the Original post on the Airplanista Aviation Blog

By Victoria Neuville,

Airplanista Guest Blogger

The sun was setting as Bill pulled out folding chairs for himself and his friend Jeff. The soda cans hissed as they opened and the men sat down and breathed in the airport scenery. The hangar chat soon turned towards aircraft insurance. Bill’s Cessna 180 policy was expiring next month and he was surprised to hear he was paying considerably more than Jeff who also had a Cessna 180! Bill promptly pulled out his cellphone to call a fellow pilot who was an aviation insurance broker.

Leaning forward in their chairs, the pilots listened intently to the woman over the speakerphone. “Let’s make sure this is an apples to apples comparison first as there are several items to take into consideration when it comes to aviation insurance rates,” she explained. Bill trusted Victoria to provide honest feedback, he wanted an insurance broker who is immersed in the aviation industry and specializes in aviation insurance to protect his assets.

“Pilot experience in the aircraft being flown is a primary factor in determining insurance rates. Jeff has over 2,000 hours experience in tailwheel aircraft and has an instrument rating. Bill, you are relatively new to tailwheel aircraft with 50 hours of tailwheel time. This, plus the fact that an instrument rating can save a pilot around 10% on their insurance explains why your rates are higher than Jeff’s.” she clarified.

Victoria then taught Bill and Jeff about the importance of knowing the value of their aircraft. While some owners carry liability only, most pilots opt to carry hull coverage on their airplane. Those who insure their aircraft for more than true market value are paying for more insurance than is necessary. If the aircraft were to sustain major damage the insurance carrier may just pay for it to be repaired when the plane would otherwise be totaled. On the other end of the spectrum, underinsuring may result in a “constructive total loss” where the cost of repairs plus salvage value exceeds the insured value.

Satisfied with Victoria’s explanation Jeff interjected, “How much liability coverage should I carry?”

The liability portion of an aviation insurance policy includes protection for property damage and bodily injury. The pilots were recommended to purchase as much liability that is affordable to them. Industry standard and the minimum required by most airports is $1,000,000 liability with a $100,000 per passenger sublimit. This limit states that property or persons outside of the aircraft can receive up to $1,000,000 for damages. Individuals inside the aircraft have $100,000 available for injuries. It is important to be aware that some outdated policies are written with a per person (versus per passenger) sub-limit stating that all individuals both inside and outside the aircraft only have a maximum of $100,000 available. In any case the maximum available for all bodily injury and property damage combined would be $1,000,000 total.

Insurance policies containing no per passenger or per person limit are often called “smooth limits”. While not available in every situation, it is in the interest of the insured to inquire if smooth limits are available on their policy.

To keep the discussion going, Bill inquired what he should do if he were to fly a friend’s airplane or rent from a flight school.

“Non-owned insurance, often called renter’s insurance, provides coverage when operating an aircraft that is not owned completely or partially by the pilot. Unlike owned policies, non-owned insurance premiums are rated on the limits of coverage purchased, not pilot experience. An ATP and a student pilot could have the same rates if they purchased the same limits. Since both of you are individual aircraft owners, your insurance may already have non-owned coverage included when flying a similar category and class aircraft. An additional policy may not be needed!”

She then explained the importance of non-owned coverage. Many pilots assume they are covered under their flight school or the aircraft owner’s policy. Sometimes that is true; however, that does not exempt the insurance carrier from subrogating (recovering their loss) against the pilot responsible. Another essential aspect of the non-owned policy is it covers the liable pilot’s legal fees. Often an hour of a lawyer’s time costs more than the insurance policy itself.

Many flight schools require non-owned coverage so that the renter pilot can cover their deductible in the case of a loss. In addition, when non-owned physical damage is purchased the policy may include loss of use, so the flight school can recover lost earnings while the aircraft is off the flight line.

Bill smiled, “Here’s a question. Why should we call you for our aircraft insurance?” Victoria laughed, “Great question! Most insurance companies do not work directly with the insured, so a broker is required. However, not all brokers are alike. Competition is the fuel behind industry rates and working with an aviation insurance broker that is appointed with all the major aircraft insurance markets will save you both time and money on your policy.  Access to multiple insurance carriers also provides flexibility before committing to a specific carrier’s requirements. Also, being able to work with a broker who specializes in aviation insurance and understands the industry as a pilot themselves adds a lot of credibility.”

“Thank you for taking the time to explain aviation insurance to us tonight. You have been so very helpful, let’s just hope I never need it!” Jeff exclaimed when their conversation was over. Bill nodded in agreement. The sky was getting dark and the moon sent shadows across the taxiway. The hangar door shut with a clank and the Cessna 180 awaited behind closed doors for its next flight.

Victoria Neuville is an instrument rated commercial pilot, the author of the Turbo the Flying Dog book series and a co-host on the Stuck Mic AvCast aviation podcast. She has over 6 years of experience as an agent managing accounts for Aviation Insurance Resources (AIR), an aviation insurance broker headquartered in Frederick, MD. When you call AIR at (877) 247-7767 to speak with Victoria, make sure to mention you heard about AIR on Airplanista!

Fall Flying at the DeLand Sport Aviation Village

November 1st, 2016

Summer may be over, but the best flying weather is still to come. For those looking to escape the chilly weather and spend time with aviation enthusiasts, the Deland Sport deland-savas-logo-color-low-res-web-06-06-16Aviation Showcase in DeLand, FL is THE place to be this November! The inaugural event aims to showcase all aspects of light sport aviation through DeLand’s “Sport Aviation Village” featuring a plethora of forums and exhibitors.

Booth #308 in the showcase will have some familiar faces! Those of Chris Wolbert, Gregg Ellsworth, Joe Ruck, Joe Cacho and Jon Harden, aviation insurance specialists at Aviation Insurance Resources (AIR). As pilots themselves, the agents of AIR love to get into the heart of the industry and meet personally with the pilots and business owners they serve. Stop by the AIR booth to discuss your aircraft insurance or just “hangar fly”.

Chris Wolbert and Gregg Ellsworth will be sharing their expertise Friday the 4th with their presentation “The Aviation Insurance Market Place Today: Always Changing”. Guests are encouraged to stop by Forum 2 at 3:30pm to learn the basics of aviation insurance and how industry changes are affecting you.

Just 40 miles north of Orlando, the DeLand Sport Aviation Village and Showcase runs November 3rd through 5th following the NBAA convention. Camping is available on the airport and shuttles are available to nearby hotels. To learn more about this great event visit: sportaviationvillage.com.

 

FBO Spotlight: Rider Jet Center

October 20th, 2016

Over ten years ago, a father and son team set out to create a fixed based operation (FBO) that had one focus: the customer experience. Both natives to Hagerstown, MD, Dave and Ben rider-jetRider established Rider Jet Center, a 50,000 square foot state-of-the-art aviation facility. Both ATPs and avid aviation enthusiasts, the Riders have fulfilled their mission ten-fold.

Although officially open from 5:00AM to 10:00PM daily, the Riders pride themselves in offering around the clock service as needed. Further fulfilling the customer experience is 10,000 square feet of office space to include a pilot lounge, snooze rooms, conference rooms, a pilot shop, and catering, hotel and rental car arrangements. Pilots from all over the nation depend on Rider Jet Center’s pristine facilities for superior services and comfort, exceeding expectations when compared to well-known chain FBOs. All levels of the aviation community receive top-notch attention, not just corporate flights.

“The customer is number one,” Dave says. “Our mission is to provide pilots, passengers and their aircraft with the highest level of safe and professional service in the industry. I have flown for over 40 years and have been to all kinds of FBOs, and while they all vary, I know what I expect when I go to an FBO. I think that’s what we’ve been able to provide here in Hagerstown.”

When the Riders aren’t hard at work, you will still find them at the airport flying in their airplanes or hangar flying with fellow pilots at local aviation events. The same goes for the agents and pilots of Aviation Insurance Resources (AIR), whom the Riders have entrusted their insurance needs to since their inception. AIR specializes in aviation and can assist with any aviation-related risk, including FBO’s, no matter their size. To get started on your FBO insurance quote visit us online or call 877-247-7767 today!

 

Aircraft Insurance – Why You Need the Middle Man

October 12th, 2016

The Avemco Insurance Company has a simple advertisement stating “Talk to a decision-maker, not a middle man.” While the ad is catchy, it can be costly for you! Let’s look at why you need an agent working for you.

Avemco is a direct writer insurance company and sets their own rates. While the employee on the phone has the ability to make simple decisions based on their level of authority, they can only provide their company quotation and policy terms.

Aviation Insurance Resources (AIR) serves you – not the insurance company. You will speak with a pilot and knowledgeable insurance agent who has access to all the major aviation insurance markets and will find you the best rates and broadest coverage available. Competition fuels industry rates, and it benefits aircraft owners to take advantage of this. Having access to multiple insurance carriers also provides flexibility when customizing the right policy before committing to one insurance company’s guidelines.

AIR can offer significant savings on your aircraft insurance. What are you waiting for? Get your quote today! Call our agent and pilots at 877-247-7767 or click here to request a quote online. To learn more about AIR you can find us at www.AIR-PROS.com, Facebook, Twitter, Instagram and LinkedIn!

 

Flight School Spotlight: Bravo Flight Training

October 6th, 2016

In 2001, Brenda Tibbs signed up for an introductory flight at an airshow at the Frederick Municipal Airport in Frederick, MD. Little did she know how one quick flight would quickly change her life. “I was hooked ever since!” she exclaimed.

Brenda began flight instruction immediately and would later become a flight instructor herself. After serving as a chief instructor at a local flight school, Brenda decided it was time to start her own school, Bravo Flight Training at the very airport where she first fell in love with aviation. Based out of the Signature FBO, Bravo Flight Training offers all levels of flight instruction including flight reviews and instrument proficiency checks. A Designated Pilot Examiner (DPE) is also available on field.

Bravo’s growing fleet currently includes a Cessna 150 and Cessna 172. Within the next few weeks a Piper Arrow will be coming on board and there are plans to add a Cirrus in brendathe future. Online scheduling is available for ease of access to Bravo instructor and aircraft schedules. The Frederick Municipal Airport is located in Frederick, MD just outside of Washington D.C.’s Special Flight Rules Area (SFRA) where Bravo offers superior training in this complex airspace.

The local pilot community benefits from the addition of Bravo Flight Training on their field. Recently, Bravo offered a free Aviation Jeopardy educational event and pilots have a “Meet the DPE” forum to look forward to on October 13th. To learn more about Bravo Flight Training visit https://www.bravoflighttraining.com/ or like their page on Facebook!

It all starts with flight schools in the general aviation industry. Whether you manage a start-up or established flight school, Aviation Insurance Resources (AIR) can obtain flight school, flight instructor and flight simulator insurance at a competitive rate for you. To find out more please contact Aviation Insurance Resources by calling 877-247-7767 or complete our quick and easy flight school quote request today.