It’s a beautiful day to fly “CAVU” over the desert Southwest. As a diligent pilot, you keep your eye on the map for the nearest airport should there be an emergency. You glance out the side window to take in the beauty of the Grand Canyon when suddenly you hear a “BANG” and a rush of air. Almost instantly, your headset is ripped off, your sunglasses disappear, and the reverberation in the cockpit is like that of your car with the sunroof open on the highway but a hundred times more intense.
Before you can even begin to process what has just happened, your training kicks in. You reach for the oxygen mask as other equipment and loose items continue to fly out. You note the autopilot has kicked off, which isn’t a problem because it’s time to hand fly down to a breathable altitude and head to the nearest airport. Trying to maneuver an airplane to “get down” and “slow down” at the same time can be a difficult task in normal conditions. In an aircraft without a windshield and cold wind whipping against your face, trying to communicate with ATC as to why you are squawking 7700 and rapidly departing your assigned altitude is extremely complicated.
Once you reestablish communication with ATC and the controller grasps the situation you are in, you receive any clearance you need. The young crew in the regional jet that was headed to the same airport you now need is directed to slow down because you are now “No. 1” for landing. They, too, are in disbelief of what they are hearing. They have been following the radio communication and had been asked by ATC if they could get you on frequency when they were unable to. Once you safely land and begin taxiing your new convertible to the tarmac, the reality of what you just experienced begins to hit you. This is a logbook entry you will not forget. The last 21 minutes put you in an experience you never could have imagined.
The next morning you contact your insurance broker to recount the story and initiate the claim process. Clearly this is something that will be covered by insurance, right? Once again, the answer depends on many things.
It truly seems that no two insurance claims are the same. However, despite the negative reputation insurance companies have, it is rare that a claim is denied. After all, aircraft policies are “all risk.” All risk policies do come with a page or two of what is not covered or what could be only partially covered. In the September 2023 issue of King Air magazine I wrote the article, “It’s Covered … Unless It Isn’t.” It was a high-level view that discussed many of the nuances of an aircraft policy and briefly referenced the “wear and tear and mechanical breakdown” exclusion. The scenario I gave then was fuel leaking out of the plane as it sat in the hangar overnight. This blown-out windshield falls under the same section of the policy. The inflight decompression will have the NTSB leaning toward defining the occurrence as an “accident.” But that does not determine how the insurance company will see that situation – covered or denied?
To determine how your policy will respond, refer to the “Exclusions” section and reference the “Definitions” page. The policy I am referencing for this article is titled “Part Two Exclusions.” Under Exclusion 7(e) the policy reads:
“This insurance does not apply to loss due and confined to wear, tear, deterioration, corrosion, freezing, mechanical, structural, hydraulic, pneumatic or electrical failure, malfunction or defect. Wear, tear, deterioration, corrosion, freezing, mechanical, structural, hydraulic, pneumatic or electrical fire, malfunction or defect of any engine, component, accessory, equipment or system is considered a failure, malfunction, or defect of the entire engine, component, accessory, equipment or system.”
“Loss” is in bold because it is defined on the Definitions page, “Part Five,” of this particular policy. “Loss” is simply defined as “physical damage.” Further digging into the definitions finds that “physical damage” is:
“Direct and accidental physical loss of or damage to the aircraft, hereinafter called loss, but does not include loss of use or any residual depreciation or diminution in value (including loss of guaranty or warranty), if any, after repairs have been made.”
A simple scenario of when this loss would be covered would be if you hit a bird in flight. That should be covered. A situation where it could be denied? If the windshield is 40 years old and blew out because of fatigue in the structure that holds the windshield in place that could result in a denied claim. As we referenced above in the policy definitions, the exclusionary wording could imply this was a structural or mechanical failure if there is no evidence of a foreign object, such as a bird, striking the window to cause the blowout.
There may be a middle-of-the-road scenario where the structure that failed is not covered, but the damage resulting from the failure is. For example, in a different claim scenario, upon landing one of the tires blows and causes damage to the underside of the wing. The tire may not be covered because it failed, but the damage to the underside of the wing would be.
As your claim process starts, the insurance company will investigate to try and determine what caused the massive decompression that resulted in physical damage to the aircraft. Could the pressurization system have failed? Did the rivets or structure surrounding the window have corrosion? Either scenario could have caused the windshield to blow out. In any claim situation the insurance company has the duty and obligation to the aircraft owner to inspect the damage and potentially hire an additional party to determine the cause of the incident. With the potential unknowns in any claim situation, it is critical that you proceed with formal notice of your claim in a manner that does not unintentionally negate coverage.
When filing a claim, treat it like you would an encounter with a Federal Aviation Administration (FAA) inspection or check ride. Answer the questions in a direct and honest manner. Do not speculate or hypothesize. The last thing you want to do is unintentionally be “exhibit one” on why your claim was denied. The burden is on the insurance company to prove that the cause of the claim warrants denial. Until then, assume it is covered. When in doubt, pick up the phone and call your broker, who should be your coach in this unfamiliar territory. They most likely see claims on a weekly basis and can advocate and work with you during the process. Occasionally, your broker may recommend that you reach out to an aviation-specific attorney for consultation. Your insurance policy is a legal contract between you and the insurance company. Every word in the document is intentional. Sometimes, especially in times of uncertainty and emotion, attorneys can be the best advisers.