Aircraft Premiums

There seems to be a mystery surrounding what factors have an influence on Aircraft Premiums. The answer isn’t a simple one. Underwriters do their best to predict the risks each insured brings to the table. They have the task of taking into consideration each of the following items while weighing some heavier than others. Each carrier has a different appetite for risk with more airplanes in the sky and more loss claims, they are becoming increasingly selective.

So, how do you lessen your aviation department's risk in the eyes of an underwriter?  

• Pilot Age

• Licenses

• Hours in Make & Model (overall flight time)

• Violations

• Loss History

• Market Pressure

• Make & Model

• Limits of Liability

• Age of Aircraft

• Location

• Hull Value

• Part 91 or Part 135

• Single/Dual Pilot operation

Of course all of the items listed above play a role when the underwriter is reviewing an application.  The top two considerations are age of the pilot and time in the make/model.  The more time a pilot has the lower the premium as long as there hasn’t been any claims in the past 5 years.  Flying single pilot will automatically reduce the number of carriers interested in offering coverage, but it doesn't make it impossible to get.  It will increase your premium since underwriters consider flying with two less of a risk.  A written SMS in place can be helpful if the underwriter needs to make a judgement call.  

My best advice is to work extensively with your insurance agent to provide a clear and concise snapshot of your aviation department. Aircraft insurance industry is experiencing a very hard market right now. It’s not getting any better, but a good experienced agent can certainly help you navigate a path to coverage.