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coverage from the Property policy, saving the client roughly equivalent to the cost of 300 gallons of Jet-A.
One of my favorite double-coverage finds pertains to non- owned aircraft. Some people are fortunate enough to own two airplanes, some of which may have two separate policies. This could be disastrous in the event you have a claim involving a non-owned aircraft. The reason is because most likely you have the following language in both of your aircraft policies: “This coverage shall be excess insurance over any other valid and collectible insurance available to you.”
Once again you have two policies pointing at each other. How do we determine which policy is primary? Most likely, if you own both a Cheyenne and a Bonanza, you would want the Cheyenne policy to be primary, as it most likely has significantly higher liability limits available to protect you in court. I have also seen situations where a non-pilot aircraft owner owns one airplane, but then decides that watching the professional pilots fly the Cheyenne is so much fun, he decides to start working on his pilot’s license. With good intentions, he purchases a Renter’s policy (Non-Owned coverage) and starts taking lessons. You now have the same problem, two policies pointing at each other.
For those of you that only have one aircraft and one aircraft policy: Do you ever use a non-owned aircraft? One of our clients called last week stating their Hawker was going to be down for maintenance and they are going to use a friend’s King Air 90. Whose policy would pay in the event of a claim? If the PIC from the Hawker meets the pilot warranty of the King Air and is PIC, will
the King Air policy be primary? This exact scenario is something that should be addressed in a contract between the two parties in order to avoid litigation in the unfortunate event of a claim.
The third coverage that can come into play is contents of your hangar. You could find yourself in a double coverage situation if there is a Property policy in addition to your Aircraft policy. Be sure you understand if your Aircraft policy is going to make you whole in the event of, say, a hangar fire in which you may have coverage under your Aircraft policy for “spare parts,” or if your Property policy is going to respond. In this scenario, it doesn’t have to be a fire. What if you have “mechanic’s tools” covered under your Aircraft policy, but also covered under your Property policy?
It is important, whether you are a business or an individual, to make sure all o•f your policies are aligned with each other and working in a concerted effort as to not unintentionally undermine one another. We only discussed three examples, but there are many more scenarios to consider. Additionally, by streamlining coverages within your policies you may find that you reduce your premiums. T&T
Kyle P. White, an aviation insurance specialist, is CEO of Aviation Solutions, a Marsh & McLennan Agency LLC company. He has professionally flown the Beechcraft King Air 90 and B200, and holds an ATP, multi-engine, instrument and instructor ratings. You can reach Kyle at kyle.white@marshmma.com.
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6 • TWIN & TURBINE
February 2017