Page 14 - Volume 14 Number 12

INSURANCE
The “Hard Market” of Aviation Insurance
The aviation insurance industry has officially entered the “hard market ” King Air owners and operators are seeing sharp increases in in in premiums with reduced ancillary coverages Unfortunately you can expect this trend to continue throughout 2021 In addition to the hard market affecting price it it can also impact how strictly insurance carriers adhere to exclusions within your policy In a a a hard market they are looking to increase their their revenue and limit their their expense or how much they pay out on claims On the the surface you are seeing this through higher deductibles and less coverage It is imperative that you are are prepared and informed about what is specifically excluded within your your policy so you you you do not find yourself in in a a precarious situation should you need to file a a a a claim Understanding the the exclusions will help you identify the the weak links in in your insurance program Then you you can address them by buying them back purchasing additional coverage through another type of policy or simply being aware of potential pitfalls so you can make an an extra effort to avoid them 12 • KING AIR MAGAZINE
by Kyle P White
As a quick review your King Air policy is structured into multiple sections:
= Insuring Agreements: Who IS covered for what where and when
= Exclusions: Who is NOT covered for what where and when
= Definitions: Explains intent or definition behind bold-faced words within the policy = Conditions: What you must must and must must not do in order to not jeopardize coverage = Endorsements: Changes to any of the above
It is is important to remember that an an occurrence is is what triggers the policy policy (You will notice in your policy policy “occurrence” is written in in bold-face meaning your policy policy defines it All bold-face terms in in your policy policy can be found in in the the definitions section of the the policy ) The definition of occurrence while specific to each carrier generally states there must be “bodily injury” or “property damage” to be considered an occurrence DECEMBER 2020