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CS&A Aviation Insurance FAQ

The aviation industry is an industry of specialists. Whether it is piston or turbine, engine or airframe, avionics or interior, those who serve your needs in maintaining your aircraft are expected to be highly trained technicians in their area of specialty. The same level of expertise should be a concern to you in selecting your insurance agent or representative.




Question:
Why should I use an Aviation Insurance Specialist, can't my regular insurance agent write my policy?

Answer:
Pick your aviation insurance agent carefully and steer clear of amateurs. There are very few aviation insurance specialists compared to the total number of general insurance agents. A general practitioner (agent) usually will know only a few aviation underwriting companies at best and will have such a small volume of aviation business that he will not be able to match the client with the most appropriate company. Unlike many other lines of insurance, aviation insurance policies vary greatly in content and coverage. It is very important that your agent understands the broad forms from the limited forms. Although you may qualify or want a restricted form of coverage, your agent should have the knowledge and ability to counsel you on the differences.

This is a relationship business. It is important that your agent has a good working relationship with the underwriters and the claims departments of the companies from which he is requesting quotes.
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Question:

Should I shop around for the best prices?

Answer:
There are only a small number of underwriters capable of writing your coverage. If you have selected a strong agent who specializes in aviation insurance, he can approach the entire group for you. Pitting two or more agents against each other is usually counter productive because an underwriter will only extend terms to one agent at a time. The first quote or declination given by a company must remain the same for any subsequent agent you appoint. Your selection process should be that of choosing your agent. If only one agent is presenting your risk, the underwriter will know that this is the person with whom he must deal. You eliminate the confusion of multiple agents contacting the same underwriter and keep your insurance marketing at a most professional level.
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Question:

What if I don't like my current agent or broker?

Answer:
If you do not like your agent or are not confident in his service or ability, select a new agent and give him the authority to represent you by "Broker of Record Letter." Your new agent will be glad to provide you a copy of the desired wording.
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Question:
I don't have time to deal with the application, can't my agent do it for me?

Answer:
We see many clients treat the application process as a necessary evil. In reality, this is one of the most important aspects of the insurance placement process. The better you and your agent present your risks to the underwriting community, the better response you will have. This is reflected in broader coverages and premiums savings. Keep in mind, only you can do the proper job in preparing your resume. Your agent does not know your history as well as you. So, a word of advice - help the agent develop the underwriting submission and give this task priority.
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Question:
How critical is the correct information? Should I overestimate my pilot hours?

Answer:
It is important to give accurate information to underwriters. It is acceptable to use approximations on such things as pilot hours if you underestimate. Many policies will make the hours and ratings given on the pilot's underwriting submission a requirement of the policy. If you over estimate your experience, you may find yourself not meeting the minimum standards set for you in your policy. If you employ a pilot, it is up to you to assure the information furnished by your pilot is accurate. Check his logbooks.
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Question:
I'm not very familiar with the make and model of my aircraft -- am i at risk of be rejected by the underwriter?

Answer:
If the aircraft to be insured is of a make and model unfamiliar to you, work with your agent to develop a pilot training and transition plan before you or anyone approaches the underwriter. A strong transition plan takes the burden off the underwriter and may turn an underwriting rejection into a good quotation. Keep in mind, the underwriter is paid to accept or reject the risks as it is presented. If accepted, it is his job to price the policy and outline the coverage's he is willing to extend for that price. It is not his job to engineer the risk to make it more acceptable. That is up to the client and the agent.
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Question:
How important is it for me to continue pilots training?

Answer:
All pilots, professional or pleasure, want to be thought of as highly qualified in the cockpit. Many, however, don't want to prepare, train, practice and pay the price to be one of the best. Remember, the underwriting community hears all the bragging, the excuses and the broken promises from agents and pilots daily. Don't overlook the importance of recurrent training. Most underwriting companies are requiring annual schools for all pilots flying turbine, jet or high performance piston equipment. Underwriting statistics have long proven the school-trained pilot has fewer losses. If we know annual training is required, we may as well make it a vital part of our underwriting submission. We look more professional and will be rewarded with a better underwriter response.
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