International Aviation Insurance
The relief efforts being poured out of our hearts and into Haiti have brought some new inquiries into the agency system, so this is a good time to provide an answer for our readers. As you go through this, as always, these are generalizations and you need to read your policy or check with your agent for specific questions.
Policy territory is a common section of your policy, usually found in the definitions section. In it, the insurance company provides where you may operate your aircraft and have the full protection provided in the event of a loss. Each company has a different definition of their territory. Some can be restrictive and specify the lower 48 states, Canada and Mexico. Another may say within the USA, Canada & Mexico so that expands to cover Alaska and even Hawaii. Another expands the territory to include Central America and the Islands of the West Indies (EXcluding Cuba). The broadest definition states anywhere in the world. Whew, that covers a LOT of territory. The definition may depend on the type of ship being insured and its' capabilities. You would expect the worldwide coverage to be connected to a business jet that has the ability to go anywhere at the direction of the owner. Wherever you travel, please be sure to take a copy of your declarations page. This document spells out who the policyholder is, the aircraft description and the limits of liability covered under the policy.
Now that you have read the territory in your policy and determined where you may fly, if you want to go outside of the territory, you need to contact your agent, who will present your request to the underwriter. To be honest, there was one underwriter who expanded the territory specifically for Haiti, but put some special conditions on the policy. Be prepared to accept a change of deductible, a change in the recovery cost section and also be ready for a premium charge for the endorsement. We have found that if the standard policy does not include Haiti and that is the specific reason for the requested policy change, the additional premium charge amount could be up to 5% of the total annual premium. Also, if the pilot asking to make the trip is a pilot without a lot of experience, the company may require the mission be flown with a second pilot or a more qualified pilot, perhaps with experience in the area. Every circumstance is unique as is the challenge of assessing an appropriate risk value. One of the concerns of the underwriter is the cost involved to recover the wreckage in a place where normal recovery is not available. The claims people may recommend that a normally repairable craft be totaled instead of spending the extra thousands that would be required to bring the damaged ship back for qualified repair work.
If your travel is not as exotic as Haiti, the most common request is for coverage into Mexico. Almost every policy has Mexico as part of its' defined policy territory. This means that the liability for damage to others and physical damage (if purchased) to your helicopter will be repaired. However, there are additional concerns when you cross the border. The Mexican government and US government are trying to work out an agreement that will allow a proof of insurance issued by an American insurance company to be accepted by the customs officer when arriving in Mexico. While this has supposedly been agreed to for several years, it seems from client experience that the border agents in Mexico still want to see coverage provided by a Mexican insurance company to satisfy their needs. Depending on which company writes your basic policy, it can either be added by endorsement for a nominal charge ranging from $85 to $250 or it needs to be placed with an independent provider of Mexican insurance for about $250-$300. Check with your agent.
Last to consider and the easier of the bunch, is Canada. While they have specific limits they require, I have not heard our clients having trouble getting into Canada as long as they have proof of their current policy.
As a fellow pilot, let me say if you have been called on to perform flights in support of this or any disaster, Thank You and Fly Safe!
If you have questions or comments, please call your agent or you can contact me directly. I would appreciate getting your direct input and reaction. You can email me at jefleming@aviationinsurors.com.
***The contents of this column are informational in nature and not intended as a legal interpretation of your coverage. Contact your agent for specific questions about your policy.***
These articles are purely advisory in nature. Your own certificated flight instructor, the FARs, pilot's operating handbook and various updated transmittals from the FAA or your aircraft manufacturer may alter or affect the information published. Leading Edge Aviation Insurance neither assumes any responsibility for the accuracy of these articles, nor any liability arising out of reliance upon these articles.