B47HA INSURANCE INFORMATION
: Bell 47 Helicopter Association
B47HA HAS DECIDED TO SHED SOME LIGHT ON THE DEALINGS OF THE INSURANCE INDUSTRY AND THEIR TREATMENT OF THE BELL 47. FEEL FREE TO AD YOUR INPUT. NAMES WILL BE WITHHELD. WE WOULD LIKE TO HEAR SOME PRAISES AND COMPLAINTS.
ceo@bell47helicopterassociation.org
B47HA INVITES YOU TO VISIT OUR NEW WEBPAGE:
Note from President Rhodes: "I am very pleased with the input AND THE NEW RELATIONSHIPS THAT WE ARE BUILDING WITH AGENTS." Also we have added some excellent insurance articles to help educate our membership
We are pleased to add Cliff Gregory from Air Capital Insurance to our approved agents.
Insurance Reps Meet with Pilots for First Hand Orientation on Bell 47
Article text by Steve Brousseau B47HA GOLD MEMBER
Photo 1 caption: Joan Zaleski gives a big “thumbs-up” to her Bell 47 flight with John Ryan.
Photo 2 caption: John Ryan starts up his Bell 47G3-B2 as Joan Zeleski looks on.
NationAir Insurance representatives Joan Zaleski and Doug Tibbs recently visited Ryan Rotors, Inc.,
(Plymouth, MA) for a first hand look at the Bell 47 helicopter and to meet the pilots who fly them.
The two-hour visit included
walk-arounds on three Bell 47G3-B1 and B2 helicopters, videos covering the role
of the Bell 47 in the cranberry industry with helicopters from Ryan Rotors, and
15-minute flights for both
Joan and Doug provided by owner John Ryan.
“This really gives us the
opportunity to see the Bell 47 up close and to see (and understand)
how these helicopters are actually used in the field. Meeting our insurance
clients in person
helps us to better represent them to the insurance markets,” says Doug Tibbs,
NationAir representative
from the Nashua, NH office.
John’s video presentation of
his helicopters in action showed the significance of the Bell 47 to the
cranberry industry in the Cape Cod area. “You can’t drive a truck into a
cranberry bog without completely
damaging or destroying it. Mud lifting, fertilizing, and cranberry harvesting
cannot be done without
the use of helicopters. The Bell 47 and its long history of reliability has
proven it to be a true performer
in our industry,” says John Ryan.
After her 15-minute flight with John in his Bell 47G3-B2, Joan reiterated Doug’s feelings about the meeting. “This certainly gives us a real-world perspective on helicopters, especially from the air in a Bell 47. We’re looking forward to having meetings just like this one with our other clients. Representing our clients to the insurance markets is our top priority.”
Here's a new infomercial from Professional Insurance Management with Terry Bradshaw: Highband
B47HA,
THANKS FOR YOUR SUPPORT.
WHEN YOU THINK YOU HAVE HEARD IT ALL - TRY THIS.
AN EXPERIENCED HELICOPTER PILOT CALLS INTO AN AGENT TO GET INSURANCE FROM AN UNDERWRITER WHO IS ALREADY CARRYING SEVERAL BELL 47's MODELS OF VARYING YEARS FROM 1953 TO 1971 TO GET A QUOTE. SO HE IS NOT ASKED FOR SPECS, OR INSPECTIONS, JUST THE YEAR. BUT THE AGENT WANTS HIM TO GIVE HER THE N# AND SN# AND IS TOLD SOME OUTRAGEOUS AMOUNT.
THEN LATER TOLD THAT THEY WILL NOT EVEN WRITE THE BELL 47 BECAUSE IT IS TOO OLD(1958) (HUH?) THE AGENT DOES DO ONE OTHER LITTLE DITTY DO DO, SHE LOCKS THE GUY OUT SO HE CAN'T GET ANY OTHER QUOTES AND FURTHER STATES THEY CAN'T LIFT THE BLOCK. OK, LET'S SEE? YOU WON'T WRITE ME, BUT YOU WILL LOCK EVERYBODY ELSE OUT FROM HELPING ME. BOY! WHAT A WAY TO RUN A BUSINESS.
WELL.... GUESS WHO GETS INVOLVED AT THE PILOT'S REQUEST, ? CALLS IN ANOTHER AGENT WHO UNDERSTANDS WHAT IS GOING ON AND THE ISSUE IS VIGOROUSLY DISCUSSED FOR ASSISTANCE AND ? IS ASKED BY THE AGENT WHAT HE CAN DO TO HELP AND HIS REPLY IS RATHER SIMPLE - EXPOSE THE TRUTH OF THE DIRTY DEED IN DETAIL FOR EVERYONE TO JUDGE THIS COMPANY.
FOUR HOURS LATER ? CALLS THE PILOT AND HE REPORTS THE BLOCK IS MYSTERIOUSLY LIFTED WITH BEST WISHES ON FINDING SOME INSURANCE. NICE ENDING, BUT VERY CONFUSING ISN'T IT.
BOTTOM LINE: HOW MANY TIMES HAS THIS HAPPEN?
IF THIS UNDERWRITER (B47HA KNOWS WHO IT IS AND I AM SURE ? HAS THEM ON NEEDLES) DOESN'T WANT TO WRITE THE 47 THEN LET THEM GO ON THE RECORD AND SAY SO, BUT DON'T PLAY GAMES AND SCREW UP A GUY FROM GETTING THE INSURANCE SOMEWHERE ELSE.
THESE INSURANCE GUYS ARE WRITING THEIR OWN RULES AND IT IS PLAIN TO SEE AND HEAR THAT THE 47 IS DISCRIMINATED AGAINST. A 47 MADE IN 1958 DOESN'T MEAN IT HAS THE ORIGINAL 1958 PARTS ON IT DUH! IF THE AGENT OR UNDERWRITER WAS PROPERLY EDUCATED THEY WOULD KNOW THAT THE HELO GOES THROUGH SEVERAL MASSIVE INSPECTION TIMELINES THAT BRING THE PARTS UP TO DATE ALL OVER THE HELICOPTER TIME AND TIME AGAIN.
AGAIN, WE NEED AN AGENT WHO CAN DEAL WITH THIS ISSUE. RATHER THAN SET ON THEIR ASS WITH A RUBBER STAMP FOR ONE CUSTOMER AND ANOTHER FOR THE 47.
I MIGHT AS WELL SAY THIS, BECAUSE A LOT OF HELO PILOT'S SAY IT, THIS 911 DISASTER HAS BEEN A REALLY NICE COPOUT FOR OUR BUDDIES IN THE INSURANCE RACKET AND THEY HAVE MILKED IT FOR ALL IT IS WORTH.
I FIND IT SHAMELESS.
ANY IDIOT KNOWS THAT INSURANCE PREMIUMS WORKS ON LOSSES INCURRED. CHECK THE STATS, THE 47 IS ONE OF THE SAFEST HELOS AROUND AND HAS THE LOWEST ACCIDENT RATE DUE TO ITS STRUCTURAL AND MECHANICAL INTEGRITY AND THE EXPERTISE OF THE GURUS THAT TAKE CARE OF IT. FOR THE FIRST HELO THAT WAS COMMERCIALLY CERTIFICATED THIS IS A DISGRACE. I BET ARTHUR YOUNG, THE INVENTOR OF THE 47, WOULD REALLY BE PROUD OF OUR UNDERWRITERS AND THEIR TREATMENT OF THIS ICON IN THE ROTOR INDUSTRY. NOT!
FROM NOW ON WHEN I TALK WITH PEOPLE, I WILL LET THEM KNOW THAT AS CONSUMERS OF INSURANCE SERVICES WE CAN SUGGEST A LITTLE LOCKOUT OF OUR OWN. THAT'S A BIG OUCH WHEN YOU FIND A GUY WITH A BIG JUICY TURBINE SEARCHING FOR A QUOTE/AGENT THAT LEARNED HOW TO FLY IN A 47. JUST LET THEM BRAG ABOUT HOW MUCH THEY LOVE THE 47, AND HOW GREAT IT WAS TO FLY, AND HOW THE AUTOROTATIONS GAVE THEM THEIR SENSE OF CONFIDENCE TO CONTINUE ON WITH THEIR CAREER, BLA BLA BLA,....... THEN ASK THEM WHY THEY WOULD GIVE THEIR BUSINESS TO AN UNDERWRITER OR AGENT WHO TREATS THE 47 LIKE GOAT DUNG. I HAVE A FEELING IF THEY HAVE ANY SENSE OF LOYALTY THEY WILL LOOK TO SOME ONE WHO SUPPORTS THE 47.
I WILL LET YOU KNOW WHAT HAPPENS WITH THE HELO PILOT AND IF HE IS SUCCESSFUL GETTING HIS HELO INSURED.
UPDATE:
NATIONAIR'S JOAN ZALESKI 1-800-456-0236
COMES TO THE RESCUE AND THE PREMIUM IS LOWERED BY ALMOST $16,000. NEEDLESS TO SAY THE PILOT WAS IMPRESSED WITH B47HA AND JOAN FIGHTING TO HELP HIM OBTAIN INSURANCE. THIS COVERAGE IS FOR COMMERCIAL OPERATIONS TOO. SO, WE HAVE SOME PEOPLE OUT THEIR THAT CARE ABOUT OUR 47. SO GO SHOW YOUR APPRECIATION AND GIVE THEM YOUR BUSINESS. PRESIDENT RHODES IS ASKING ALL 47 OWNERS TO REVIEW THEIR POLICIES AND CALL PEOPLE LIKE JOAN OR RANDY KENYON WHO ARE WILLING TO HELP. JOAN IS NOW AN APPROVED AGENT FOR B47HA AS WELL AS NATIONAIR'S DOUG TIBBS, AND PROFESSIONAL INSURANCE MANAGEMENT'S RANDY KENYON.
Thank Joey for making the call for me. I have reduced my premium substantially. I think they respect your position. I will be glad when B47HA takes the money grubbing bastards to task for their wholesale outright contempt for the Bell 47. My new company is great to work with and I get certificates when I need them. I use to have to wait for the guy to get off his ass at the last place. The best day of my life was canceling that jerk's commission on my hard earned money. Keep up the pressure. If anybody can turn this around ..you can. Call me if I can help. I got my membership dues worth and you can tell everybody that!!!
We’re all looking forward to the help on the insurance! More pilots would actually buy insurance if it were more
affordable. It’s costing me over $5800.00 for one million in liability coverage with a 100K sublimit. This is a real rip-off.
But there
are only 3 or 4 underwriters and they know how to shaft the pilots. It’s too
bad. Maybe the association
can set something up so that we can pool together to get a better deal. AOPA
isn’t much help for the helicopter
community when it comes to helo insurance. But if you have 12000 hours of
logged flight time in a fixed wing, you
can get the helicopter policy for $1700 right out of flight school. It’s an
unfair and subjective system.
The
insurance companies are dinosaurs and they couldn’t care less about the policies
they write. And the helicopter
pilots pay for all of the fixed wing damages out there. We auto rotate…and they
crash head on. Where would you
rather be? I’ll take an autorotation any day!
Been happy so far. I paid $3500.00 for One Million liability only. Remember, I had less than 10 hours in Rotorcraft when I got this. Should go down next year.
I am a private pilot and I pay $2000 a year for 1 mil. liability.
I run a fairly diverse operation and I pay $6500 for "1 mil smooth liability from Nation Air.
I deal with AIG and I am paying $4500 for 1 mil liability.
I called for full hull and 1 mil liability and the agent blew me away with a $29,000 "guessamation premium," I didn't give them my #s and I went somewhere else and got it a lot lower.
Some of the
agricultural business owners who fly Bell 47s are paying upwards of $10,000
annually for a little
$250K liability policy with sublimits, and with no hull insurance, for a single
helicopter with no prior accident claims.
They all admit that they are underinsured. The attitude of the insurance company underwriters is “take it or leave it.”
My insurance agent said unless he is writing a policy with a premium over $20k he's not interested.
Here are some excellent articles from Randy Kenyon's Company PIM that they have allowed B47HA to present to educate and help our members.
Purchasing Aircraft Insurance: The Right Way
Part I
By Timothy K. Bonnell Jr.
Professional Insurance Management
Aviation Insurance is one of the most complex and specialized fields in the insurance industry. It is a much smaller portion of the industry than home, auto, life, health, and general commercial insurance industries. In fact, in premium volume, Aviation Insurance makes up less than 1% of the entire insurance industry. Given its size and specialized nature, the Aviation Insurance industry operates differently than other lines of insurance. In this first part of Purchasing Aircraft Insurance: The Right Way, we will look at how the aviation insurance market works, and determining the best way to go about purchasing your aircraft insurance.
It is extremely helpful to have some education as to how the Aviation Insurance Market works. Aviation Insurance companies write policies in one of two ways: Directly (a direct-writer), or through an appointed Aviation Insurance agent/broker. Currently there is only one direct-writer in Aviation Insurance: AVEMCO. All of the other 8 companies deal exclusively through brokers. In such a specialized and complex field it is extremely advantageous for the companies and aircraft owners to have experienced and knowledgeable Aviation Insurance brokers.
All of the companies in the Aviation Insurance marketplace will quote, negotiate and bind policies with only one broker at a time, except for one. For a broker to be able to work with a company, he or she must be appointed by that company. Most brokers are appointed by several of the companies. However, it is most advantageous to you to work with an insurance broker like Professional Insurance Management** that is appointed by all of the Aviation Insurance companies. Knowing that your broker is shopping all of the companies for you, accompanied by the fact that they treat you as a person and not a number is extremely important to most aircraft owners.
How do you know whether or not your broker is appointed by all of the markets? You simply ask. Here is a list of all the current Aviation Insurance underwriting companies:
(Some of you may have been with ACE USA Aerospace (formerly Cigna). Effective the first of this year, ACE has merged to become a part of USAIG). In some situations, although not usually in the case of private aircraft, we are able to place coverage through the Lloyds of London facilities. All other Aviation Insurance company names that you might see are agencies or brokers. Each underwriting company has their own niche, and prefers to write different types of aircraft and situations. Depending on your particular aircraft model and pilot experience, you may have one to several of these companies that will write your aircraft. However, many of the standard models are often quite competitive.
Another important question to ask your broker is do they specialize in Aviation Insurance. Are they dealing directly with the underwriters, or do they have to go through another broker to get the quotes (called co-brokering). In this situation, you are essentially adding another middleman (a co-broker), and providing another opportunity for information to be lost or misconstrued. Plus you lose the advantage of working with someone who directly understands and deals day to day with the Aviation Insurance marketplace.
Above we saw that all but one of these companies will negotiate with one broker on an account. The exception to this rule is AIG Aviation. For Pleasure and Business use aircraft (pleasure and incidental business travel where no charge is made), AIG will quote any broker that approaches them for a quote via an automated system. They have their rate chart set up so that if any broker (whether 1, 2 or 5) submits application information, all of the quotes should be the same. There are potential problems with this method. If for some reason you supply your information to more that one broker and you get varying quotes from the different brokers, there is either a difference in liability limits, hull values, or incomplete information supplied for the quote (i.e. ratings or hours that a pilot does or does not have, or if an aircraft is tied down verses hangared). Also remember, that reporting information inaccurately whether to obtain cheaper rates, or for any other reason, could result in the denial of a claim in the event of a loss. This demonstrates an important rule when making your aircraft insurance decision, always make sure you are comparing apples to apples and providing accurate information.
So what do you do to obtain quotes from another broker with the other companies if you are unhappy with your current agent/broker, or just want to change to someone else? You sign a Broker of Record Letter assigning the new broker as your broker of record. Now don't be mislead by a dishonest (yes there are a few) broker. If you sign it, it will allow the new broker to obtain quotes for you, HOWEVER it will take away any ability of your current broker to quote, negotiate or bind coverage with any of the companies mentioned on the letter, if not them all of them. Another important issue to know is that when a Broker of Record Letter is given to the new broker, that broker will receive the same exact quotes from the companies that already quoted your previous broker, unless substantially new information is provided. So always be aware of what you are doing when you sign a Broker of Record Letter, it is your tool to using a new broker, but remember that it is giving companies to the new broker, but taking away from the old.
Now that we have been through all the loops and barrel rolls of how the Aviation Insurance market works, we simply need to put the pieces of the puzzle together. First, find the right broker, make sure they are appointed by all of the aviation insurance companies, and that they are competent to serve your needs. Do they specialize in Aviation Insurance? Do they shop each company every year? See if they deal directly with the markets or have to go through another aviation insurance broker. If not you may want to consider working with someone else. When doing so, always consider that AIG Aviation quotes should be the same if the correct information has been provided, and that when you sign a Broker of Record Letter appointing someone else as your broker you do so for the right reasons and with full knowledge of its implications. Understanding how the Aviation Insurance Market works, combined with working with the right broker, will make purchasing your aircraft insurance, easier, more cost-effective, and efficient. With that, you can accomplish the real goal of getting in the airplane and enjoying the blue skies with a peace of mind.
In Part II of Purchasing Aircraft Insurance: The Right Way, we will expand on what we have learned here and consider what values, limits, and coverages to carry with your aircraft insurance, and look at important factors to keep in mind when purchasing them.
Purchasing Aircraft Insurance: The Right Way
Part II
By Timothy K. Bonnell Jr.
Professional Insurance Management
This is the second article of the two article series on purchasing your aircraft insurance. The goal is to have a better understanding of the basics of aircraft insurance, to save you time, money, and hassle when it comes time to purchase, or renew your aircraft insurance policy. After our discussion in the last article, we know that half of our battle to purchasing aircraft insurance is working with the right agent/broker. Now that we better understand how the Aviation Insurance Market works, and we have selected the right agency to work with, we must consider how to value our aircraft, determine what liability limits are available to us for our situation, and any additional coverages we may need.
Many of us are always wondering if we are insuring our aircraft at the correct value. Am I insuring it for too much and thus paying additional premium, or am I underinsuring it to the point that I will not be properly insured in the event an accident totals my aircraft? Well, you must be aware of what your make and model aircraft is doing in the market. Check the Blue-Book value, and factor in your add-ons (i.e. avionics, de-ice, etc.), and modifications, as well as airframe and engine hours. If you do not have access to a Blue Book you may be able to use various online sources, or your insurance agent may be able to help you out. Read the aircraft classifieds to see what other aircraft similar to yours are selling for. Use these tools to consider what it might cost you to reasonably replace your aircraft with one of the same like kind and quality.
Why do I want to go to so much trouble in considering the value of my aircraft? Well there are many reasons. In regards to valuation, there are three basis that insurance policies are written: Replacement Cost (Homes), Actual Cash Value (Auto), and Agreed Value (Aircraft), and it is important to know the differences. Many Home Owner policies are written on a "replacement cost" basis. To generalize, they will pay the cost to replace your house in the event of a loss at what it would cost with materials and labor today versus what the house is really worth. So if the cost to replace your house is higher what the actual value is, then you will still be covered. Most Auto policies are written as "actual cash value," meaning they will cover you to what the actual cash value of your vehicle is worth at that particular time. In contrast to those two basis, nearly all aircraft policies are written on an "agreed value" basis. With an "agreed value" policy, the company will pay the agreed amount in the event of a total loss. That means that in the event of a total loss the insurance company will pay the value that you and the underwriters agreed on when binding your aircraft policy minus any applicable deductible. They will not pay the full cost to replace the aircraft; they will pay the agreed value. Usually the company will not insure an aircraft that is 10-25 % above or below book value with out sufficient substantiation, but you can still run problems either way.
One of the biggest issues that I often see with hull valuation is when an insured calls and wants to dramatically lower their hull value. I often ask, "Does this happen to be the amount of the note you still owe to the bank?" The answer is usually "yes." In an effort to save premium, many insured's will try to lower the hull value just to what they are required to carry, so that in the "rare" event of a catastrophic total loss they will still receive that value. Unfortunately, it does not take a catastrophic total loss for an insurance company to total an aircraft. A loss that is more minor in damage could possibly cause the company to total the aircraft. Here is how it works: when a loss occurs, an adjuster will seek out bids to repair the aircraft. At the same time he also seeks out a bid for salvage. What he does then is that he will add the sum of those two bids together, and if the sum of the two bids is higher than the insured amount, he will total the aircraft. Let us take a look an example of this:
A client, we will call him Jim, has a $50,000 book valued aircraft that he has insured for $50,000 agreed value the last couple of years. Jim would like to cut his insurance costs. So he looks at his loan, and sees that he still owes $35,000 and that he must carry that much insurance to satisfy the loan agreement. So Jim lowers his agreed value hull amount, and his aircraft is now insured for $35,000. He feels all right about the change thinking that in the very rare case of a total loss he would get $35,000 for the aircraft, and that if any accident did happen it would be probably be non-catastrophic, and he would have $35,000 to cover a loss of that type. Well sure enough Jim has a non-catastrophic loss, he landed hard causing the gear to collapse, resulting in a prop-strike, as well as engine damage on top of the broken gear. He turns this in to his insurance company and the adjuster comes up with several repair bids, the lowest of which is $30,000. Jim is relieved because he carries $35,000 hull coverage and thinks he is all right. Well what he didn't consider is the salvage value. The adjuster also obtained the salvage bid that came in at $15,000. As we learned above the adjuster takes the repair bid, $30,000, and adds it to the salvage bid $15,000, coming up with $45,000. Since that figure is higher than the insured amount, it will be more cost effective for the company to total the aircraft and cut Jim a check for $35,000 less any applicable deductible. This is the insurance companies sole decision. The insurer retains the right to the salvage if a total loss is paid. So due to a minor loss, Jim is out $15,000 in equity, and must come up with that much additional money in the event he wants to replace the aircraft. Had he insured the aircraft for $50,000 the aircraft would have been repaired, avoiding any of the unfortunate results mentioned above. This scenario is called a "constructive total loss."
To keep it short: It is always best to insure your aircraft to its fair market value. This will help avoid a constructive total loss scenario, and insure that you will receive a fair settlement on any covered loss. Now that we have valued our aircraft correctly, we need to think about how to cover our third party liability exposures.
Determining what limits of liability (third-party liability) to carry is always a big decision when purchasing your aircraft insurance. In today's hard market, the bigger questions seems to be, how much liability am I able to get. On most single and light multi-engine piston aircraft, underwriters today do not like to offer any limit above $1,000,000 Combined Single Limit (CSL) for Bodily Injury and Property Damage each occurrence sub-limited to $100,000 per passenger. Meaning of that $1,000,000 coverage limit, each passenger is limited to $100,000 of the limit. Watch out for some policies from direct writers that have liability sub-limits that say "per person," meaning each person involved in an accident, whether in the aircraft or on the ground, is limited to $100,000 of the limit carried. This limits your coverage much more substantially, as you can control the number of people in your aircraft, but it is impossible to control how many people on the ground could be affected. Also, watch for so called "family sub-limits," where your family members are further limited to the amount of liability coverage for which they are eligible (i.e. Limits such as $24,000 or $12,500 for children, parents, or spouses).
For more experienced pilots a limit of $1,000,000 CSL (called "smooth," where there is no passenger or person sub-limit) to $2,000,000 CSL may be available, but many companies require some sort of annual recurrent training such as the FAA Wings Program or another formal school to carry that limit. Larger cabin-class single and multi-engine aircraft with qualified pilots are often eligible for liability limits up to $5,000,000 CSL and $10,000,000 CSL. As you get past $5,000,000 CSL, the companies begin to require professional pilots and annual ground and flight training, more often that not the training must be simulator based. Corporate turbine aircraft with experienced professional pilots could be eligible to purchase limits of liability of anywhere from $25,000,000 CSL to $500,000,000 CSL.
So depending on your aircraft, pilot experience, and aircraft use, you can see there are different liability limits available. However, a large majority of insured's carry $1,000,000 each occurrence with the $100,000 per passenger sub-limit. A large reason for this is that this is the limit that the insurance companies feel most comfortable writing, and is the most available to insured's. As the limits get higher, so do the restrictions and costs. The best policy in determining what limits to carry, is to buy as much as you can obtain and afford. You must make a personal decision about your assets and liabilities, how many family members you have, and how they may be effected in the event something should happen. We have now reviewed the two biggest decisions with our aircraft policy, now it is time to consider some of our other coverages and issues.
A third coverage you will usually see on an aircraft policy is Medical Payments. This is similar to the Medical Payments coverage on your automobile policy. That is regardless of who is at fault in an accident, your policy will pay the set amount (usually between $1,000 and $5,000 per passenger) for medical and/or funeral expenses. This coverage is usually a "throw-in" or available at little cost. It is not one of the major parts of the policy, but you may feel more comfortable with the coverage there, and with higher limits to assist you with costs in the event of a loss.
Guest Voluntary Settlement is a coverage, usually purchased on larger corporate aircraft, that is a tool to an immediate settlement in the event of a loss in exchange for a release of liability. So that in the event of a claim this limit will be there to settle, with an injured passenger or their estate to avoid lengthy lawsuits. This is used more as a travel and accident policy to augment workers compensation coverage for companies. Limits vary; the minimum is usually $100,000 per passenger and a typical limit around $250,000 to $500,000 per passenger up to the number of seats in the aircraft. The company will not pay any amount without a signed release of liability for the claim.
There are two other parts of your aircraft insurance policy to consider. The first being your geographical territory limits. Always check your policy to make sure that you are not flying outside the territorial limits of your policy. Also remember that if you are flying over or in Mexico that you will be required to carry a Mexican Liability policy, so always contact your broker if your travel will take you that way. If there is ever any question about a certain place being covered on your policy, please call your broker.
The other issue to consider is the "war risk" coverages. This is a part of your aircraft policy that has become a serious issue in recent months. Due to the overwhelming complexity of the issue, we will be writing an article for you very soon.
This in a nutshell, is the store of coverages that you evaluate and purchase for your aircraft insurance policy. This all may seem overwhelming to a new aircraft owner, but fortunately, there are good agents/brokers out there to assist you in this process. Hopefully, after reading this two part article, you have a better understanding and knowledge of how to purchase your aircraft insurance the right way.
THE BELL 47 HELICOPTER ASSOCIATION INC.
28931 BRINK RD.
CARLYLE, IL. 62231
RETURN TO: Bell 47 Helicopter Association
