Aviation Liability Insurance

• Aircraft make and model
• Uses of the Aircraft (hazardous uses will require detailed pilots experience)
• Pilot history, age, and experience of pilots
• Cover required – Full Flight Risks and/or Ground Taxiing Risks
• Depending on aircraft type/uses – details of pilot training
• Claims history (Incidents/Accidents)

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All aviation insurance companies are different. Factors can include the age of the aircraft, use of the aircraft, experience of the pilot, loss history of the make and model, state/territory in which the aircraft is used, pilot training, value of the aircraft, and limits of liability. It’s important to work with an aviation insurance specialist such as AGL Aviation who knows the market and understands how to place your insurance whilst getting the best rates and coverage.

As a specialist we can provide a quick turnaround and depending on the complexity of the risk we can place cover on the same day you call us.

Each insurance provider will have their own rating structure based on the safety record of different aircraft, and costs to repair (including the availability of parts) associated with each aircraft make and model.

Aircraft with a good safety record combined with low repair costs can have a favourable influence on insurance costs. If you are considering the purchase of an aircraft, it’s a good idea to discuss it with an aviation insurance specialist such as AGL Aviation before you buy.

We would recommend insuring your aircraft for what it would cost if you had to replace it with an identical aircraft (Year/Make/Model and condition). It would be advisable to do some research on similar aircraft available. You should also factor in USD/AUD exchange rates and the supply and demand of aircraft types and spare parts.

Insuring an aircraft Hull for more than its current market value may adversely impact the insurance company’s decision following an accident as to whether or not to write off or repair the machine. The insurer of an “over-insured” aircraft will be more likely to elect to repair a severely damaged aircraft. Conversely, “under-insuring”, that is insuring the aircraft Hull for less than the fair current market value, could result in the insurer electing to make the damaged aircraft a “total loss” when the aircraft would have otherwise been repaired.

There is no simple way to determine this. It is generally best to buy the highest liability limit you can reasonably afford. However, there are various factors to be considered when purchasing liability insurance including any contractual requirements, number of passenger seats, bank/finance requirements and aircraft uses.

If the aircraft is used for Charter (i.e. fare-paying passenger carriage), then you would need to consider the minimum limit of liability per seat as per the Civil Aviation (Carriers’ Liability) Act (1959).

It’s important to consider your current hull value after major upgrades, modifications, new engines etc as the upgrades could increase the life of the aircraft and the value of the aircraft.

Changing your hull value can be easy. In some cases, we can increase the value over the phone. In other cases, your insurance company will require a list of the work undertaken and the associated costs.

An Open Pilot Warranty is a condition stated in the insurance policy which allows pilots that meet certain minimum qualifications to fly the aircraft without being specifically endorsed on the policy as a Named Pilot.

Some policies don’t contain Open Pilot Warranties. In many cases, we can request to specifically approve and name a pilot that does not meet the specific Open Pilot Warranty on your policy.

An insurance broker represents you and has the responsibility to negotiate the best terms and conditions of the insurance coverage on your behalf with the insurance company. Most insurance companies work only through insurance brokers so it is crucial that you choose a professional insurance broker such as AGL Aviation as your representative.

The insurance company creates the policy and pays the claims. Insurance companies can differ in their business focus, policy language, pricing, and claims support capability.

It is a broker’s job to place the business with the insurance company that best fits the needs of the client at the best available terms and conditions.

Breach of Warranty provisions are often required by a financial institution that holds a financial interest in an aircraft. They are often added by endorsement that revises the basic policy and provides cover for the financier to be compensated in the event of an aircraft being subject to a claim which the insurer may decline to pay due to a breach of policy conditions by you or an approved pilot. The Breach of Warranty cover may enable the entity that holds the financial interest to still be paid by the insurer up to the amount of their financial interest in the aircraft.

It’s strongly recommended that you cover your aircraft with your own policy. Some Maintenance facility’s may carry hangar keeper’s liability (which is designed to protect the maintenance organisation in the event of damage to an aircraft whilst under the care, custody or control of the maintenance facility due to their negligence).

In some circumstances, the maintenance organisation may have purchased insufficient or deficient coverage and this may impact the protection of your asset.

Additionally, even if the maintenance organisation enjoys adequate cover its hangar keeper insurance policy may not pay out for certain types of losses, for example, those resulting from storm, vandalism, or mechanical failure. If the maintenance organisation is not legally liable for the loss, it’s unlikely the insurance company will be required to compensate you or the maintenance organisation.

Each insurance provider has their own ratings and guideline to work from but an aircraft with a good safety record combined with low repair costs can have a favourable influence on insurance costs. If you are considering the purchase of an aircraft, it’s important to discuss your choice with an aviation insurance specialist before you buy to avoid any surprises after the fact. You don’t want to complete a purchase and subsequently learn that the cost to insure your new aircraft is higher than you expected.

Accidents happen. In most cases, the future insurability of the pilot who had the accident is based on the circumstances of the claim itself. A costly insurance claim may have a greater impact on your future insurability. If the claim was caused by a mechanical malfunction and had nothing to do with the pilot, the insurer may be more understanding. In cases of pilot neglect or error, a new insurance policy can be more challenging to obtain, but this is where an aviation insurance specialist such as AGL Aviation is needed to assist in these situations.