Frequently Asked Questions
- What should I consider when purchasing an airplane or helicopter?
- Is it important and do I need to return an application after my aviation insurance coverage has been bound?
- Are there different Liability Limits available? What limits should I purchase?
- How can I reduce my Aviation Insurance Rates?
- Who can fly my airplane or helicopter? What is an Open Pilot Warranty (OPW) / Clause (OPC)?
- Can I let someone borrow my aircraft and charge them for using my aircraft?
- Will my policy cover me if I rent or borrow someone else’s airplane?
- What is Breach of Warranty?
- What is a Broker of Record (BOR) letter?
What should I consider when purchasing an airplane or helicopter?
- Buying an airplane or helicopter is very exciting! Typically a good starting point is to decide how much you can afford to spend on the aircraft – this amount ranges drastically depending on your income, commitments, priorities, and travel plans. You may be purchasing an aircraft for $20,000 or $10,000,000. There are many places you can start searching for a new aircraft: airplane magazines, helicopter magazines, airplane internet websites, helicopter internet websites, airplane dealerships, helicopter dealerships, etc.
Is it important and do I need to return an application after my aviation insurance coverage has been bound?
- It is VERY important to turn in your Aviation Insurance Application. The Aviation Insurance Company will require a fully completed and signed application from the Policy Holder within 60 days of Aviation Insurance Policy inception date. If the Aviation Insurance Application is not fully completed, signed, received, and processed by the Aviation Insurance Company within 60 days of the Aviation Insurance Policy inception date the Aviation Insurance Company can and will cancel your Aviation Insurance Policy as you, the policy holder, have not satisfied this part of your insurance contract.
Are there different Liability Limits available? What limits should I purchase?
One big part purchasing an aircraft is calculating the annual cost of owning an airplane or helicopter… one of these items to make sure you have is Aircraft Insurance placed by ZANETTE Aviation Insurance!
When purchasing an aircraft there may be other surprises along the way. Common Insurance Policy requirements are Pilot Flying / Training Requirements. For a Cessna 182 the requirement might be 5 Hours Dual Instruction with a CFI prior to Solo flight with no annual recurring requirements, whereas the requirement for a Cessna Citation VI 650 will most likely be Annual Formal Ground & Flight School for the Make & Model. When speaking to a ZANETTE Aviation Insurance Broker you will find all the answers you need while obtaining the Aviation Insurance Quotes, and the Aviation Insurance Policy you require.
- Depending on type of aircraft and pilot qualifications there may or may not be multiple liability limit options when purchasing your Aircraft Insurance Policy. For Single Engine Piston Airplanes we can usually offer up to $2,000,000 CSL. CSL means Combined Single Limit and is commonly referred to as “Smooth Limits”. Liability limits higher than $2,000,000 CSL can be offered on an Excess Insurance Liability Policy also issued through our office. Turbine, Pro-Flown / Industrial Aid, Part 135 / P-135 / Charter operations can all be insured for much higher liability limits up to $100,000,000 CSL.
Some Policies will have liability limits with Sub-Limits. A Sub-Limit limits the amount a passenger can claim out of the CSL limit. A common liability limit is:
- $1,000,000 Combined Single Limit (CSL) for Bodily Injury and Property Damage each occurrence but with the passenger liability limited to $100,000 per passenger.
How can I reduce my Aviation Insurance Rates?
You should purchase a liability limit which will protect you, your family, and your assets in the case of an accident or incident. It is sometimes hard to value insurance as nobody plans on crashing and having to call your ZANETTE Aircraft Insurance Broker to submit a claim, or worse, you are incapacitated or no longer with us and a family member has to call to submit a claim. You want to purchase enough coverage which will protect everyone you care about (including yourself) and also coverage which will cover your passengers who have entrusted their safety in you. If 90% of your flights are you and your spouse then you might consider minimal liability coverage. If you are flying family members, friends, colleagues, your children’s friends, etc. you will probably want to think of higher CSL and/or higher Sub-Limits. If you have an expensive home or several homes, large bank accounts, airplane(s) / helicopter(s), children in college, etc. you might want higher insurance limits as people often sue those with a lot of assets. If you are a business / corporation using the aircraft you or your financial advisors will recommend higher liability limits.
Please Note your umbrella policy EXCLUDES Aviation.
- You can reduce your aviation insurance rates by the following, which might differ depending on type of aircraft on your insurance policy and the use of your insurance policy:
- Logging more Total Flying Hours
- Logging more time in the Make & Model aircraft on the insurance policy
- Acquire advanced Pilot Certificate(s) i.e. Commercial Certificate, ATP Certificate
- Acquire advanced Pilot Rating(s) i.e. Instrument Rating, Multi Engine Rating, CFI Rating
- Keeping your aircraft in a Fully Enclosed Hangar
- Maintain a Claim-Free pilot history
- Sometimes by attending and successfully completing Formal Ground & Flight School for your Make & Model aircraft
- Sometimes by successfully completing other recurrent training. For example an annual Instrument Proficiency Check ride with your CFI which is endorsed in your log book. Or successfully completing an Annual Biennial Flight Review (only required every 24 months by the FAA) which is endorsed in your log book.
Who can fly my airplane or helicopter? What is an Open Pilot Warranty (OPW) / Open Pilot Clause (OPC)?
- Pilots who are Named as Approved Pilots on your insurance policy can fly your aircraft with your permission as long as they satisfy any additional stipulation(s) listed by their name on the Pilot Warranty Endorsement.
Can I let someone borrow my aircraft and charge them for using my aircraft?
- This is actually 2 questions in 1. Starting with:
- Can I let someone borrow my aircraft?
Yes, someone can borrow your aircraft IF the person borrowing your aircraft is a Named Pilot on the aircraft insurance policy or if they fit all the requirements of the Open Pilot Warranty or Open Pilot Clause.
- Can I charge someone for using my aircraft?
This is answered in the USE of your aviation insurance policy or by Endorsement which would amend the USE of your aircraft insurance policy. If you have a Pleasure & Business use / Private Aircraft insurance policy then you cannot charge for the use of your aircraft, unless you have an endorsement which states otherwise. You will know if you have an endorsement which states otherwise because it would have been discussed between you and your ZANETTE Aviation Insurance Broker at the time of binding or renewing your aircraft insurance policy or during the course of the insurance policy by endorsement. Common Endorsements which allow a charge to be made for the use of the aircraft are: sightseeing, Aerial Photography, scenic tours, banner towing, and more. Depending if this aircraft use is on occasion during the policy period or full time during the policy period the policy may remain Pleasure & Business use with corresponding endorsement or change to a Commercial use aircraft policy. If you have a Rental use (most common are Rental & Instruction use or Flying Club use) aircraft insurance policy you are able to Rent your aircraft aka charge for the use of the aircraft. The person renting or using your aircraft for a charge can usually only use the aircraft for their own Pleasure & Business use. There are other uses which you can charge for the use of your aircraft, for example, Commercial uses, Charter use or P135 use aircraft insurance policies.
Will my policy cover me if I rent or borrow someone else’s airplane?
- You can rent or borrow someone else’s aircraft if you have it endorsed or if mentioned in the Aviation Policy Provisions. In your Aviation Policy Provisions the section is usually titled: Use of Other Aircraft. Use of Other Aircraft is for any aircraft you do not own in whole or in part. Use of Other Aircraft also only gives you Liability Coverage and no Physical Damage / Hull Damage coverage.
What is Breach of Warranty?
- Breach of Warranty is requested by and given to the Leinholder / bank you have an aircraft loan with for your aircraft on your Aviation Insurance Policy. The term ‘Breach of Warranty’ provides that if you, an approved pilot, or your aircraft performs an act which voids the obligation of the Aviation Insurance Company to approve a claim the Leinholder will still get their loaned portion paid to them from the Aircraft Insurance Company.
What is a Broker of Record (BOR) letter?
Pilots who are not named but fit the Open Pilot Warranty / Open Pilot Clause can fly your aircraft with your permission but only if they fit ALL of the requirements listed.
If you would like a pilot to fly your aircraft who neither is named or fits all the requirements of the Open Pilot Warranty / Open Pilot Clause call us and we can get a quote and with your request add them to your insurance policy by endorsing the aircraft insurance policy with the additional pilot.
If you rent or borrow other aircraft frequently or want Physical Damage / Hull Damage coverage you should consider purchasing a Non-Owned Aircraft Insurance Policy. ZANETTE Aviation Insurance offers several Non-Owned Insurance Policies which are for either CFI or Personal Use and are split into different rates for Fixed Single Engine Airplane, Fixed Single & Multi Engine Airplane, and Rotor Wing / Helicopter policies. The Non-Owned Rotor Wing policy also includes the use of Fixed Single Engine Airplanes.
You can also rent or borrow someone else’s airplane if you fit all the requirements of their Open Pilot Warranty / Open Pilot Clause and have their permission to fly the aircraft. If you are flying under the Open Pilot Warranty / Open Pilot Clause you will be covered under that aircraft’s insurance policy.
- Some Aviation Insurance Companies will offer the same exact quote to all Aviation Insurance Brokers who approach them on the same aircraft and owner. Other Aviation Insurance Companies will only offer a quote to the first Aviation Insurance Broker who submits the specifications for the quote. In this situation you have chosen to work with only ZANETTE Aviation Insurance as your Aviation Insurance Broker so we will need you to sign a Broker of Record (BOR) letter in order for the Aviation Insurance Companies who are “committed” or “involved” with another Aviation Insurance Broker to release the insurance quote to us. It is important to sign and return the BOR to us ASAP as there is usually a 5 day grace period to obtain the quote from the committed or involved company. This 5 day grace period can be waived with your request to the previous aircraft insurance broker.