Insurance Special Risks: Are you insurable?

I believe all of us at one point in our flying career will be considered a "special risk". From our introduction flight just about all of us have looked around the airport at the many different aircraft and been inspired to one day own or fly a newer, faster or more advanced aircraft or desired to fly commercially in one or more exciting aviation careers. Insurance always seems to be the question, obstacle, and uncertainty with owning or flying that aircraft of your dreams in the form you wish, but it doesn't have to be.

We all have to start somewhere. Nobody that I know learned to fly in a Lear 35, but there sure a lot of people out there type rated in them. Yes, it can be achieved. The keys to getting there are patience, training and persistence. With those things in your mind and heart, combined with a good attitude about safety, you can and will get insured in about anything you're heart desires.

Besides what a lot of pilots think, insurance companies are not the devil. I have heard the comment in the past more than once; "well the FAA say's I am qualified to fly it". But guess what? The FAA doesn't sell insurance. So the truth in the matter is that for years the insurance industry has taken a very large and behind the scenes role in regulating aviation and making it safer. They have an interior motive to do so; profit! Safer flying and fewer accidents equals lower premiums and larger profits; we all win.

Insurance companies are in the business of taking and regulating risk. The end goal is to do just that and turn a profit. Being in the risk taking business means that every company and every underwriter has a taste for certain risks. Some only like very low risk pilots and aircraft, and for that, give very good premiums for that class of business. Other companies like higher risk situations and in return get to charge higher premiums. The key is presenting your situation to the companies and underwriters that have a taste for your particular situation.

We have all had good and bad experiences throughout or lives that have affected our decision making and the underwriters within the aviation insurance companies are no different. Some have taken a bad loss or two with a certain make and model of aircraft. So even though the company they work for might take on a certain risk, the individual underwriter may not be comfortable with it due to a bad experience. So getting your special risk placed needs to go beyond just sending it to the general pool at an insurance company. This is where your agent earns his or her money.

Let's face it. Any agent can gather the necessary information to put a simple quote request together, send it out to the underwriting companies and hope for the best. But what else can we agents do to better your chances of getting insured and at a lower premium? Well, we can work together with you, our client for starters. Find a good transition training program for you and your new aircraft. Find a mentor pilot with lots of experience in that make and model of aircraft that will give you a formal training program that will make you and your insurance company feel comfortable. Then sell that program and mentor pilot along with the proper quote request to the right underwriter at the right company.

It is our job as agents to know our underwriters. We need to know what they like and dislike. We need to know what their good and bad experiences have been. That gives us the knowledge to be sure to place a certain situation not only with the correct company, but also the correct underwriter. That can make all the difference in the world with your insurability and premium. So don't be afraid to ask your agent how they are going to handle your risk and the marketing thereof. Be comfortable with what their plan of attack is before they market your risk and if you're not, look for someone that you are comfortable with.

So when you find that aircraft you would like to fly or own, don't ever assume that you can't get insured in it. Maybe you can and maybe you can't but at least ask your agent before not considering it at all. We have a pretty good idea of what can and can't be done and can tell you in a few short minutes. Just do us all one very big favor; let us get you a formal quote before you purchase that aircraft of your dreams. Knowing in advance what training is going to be required and what premium you are going to pay can save you a lot of stress and maybe cause a decision change. So pursue your dreams and communicate with your agent and together we will make it happen.

Rick Ross

President

Leading Edge Insurance Agency, Inc.

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.