Page 16 - Volume 14 Number 12

INSURANCE
confiscation or seizure is is also not covered “War” has many meanings in in the aircraft policy For example flying your King Air to Central America could create a a a a large exposure If the local general decided to seize the aircraft because he he thinks it could be be useful for him you you would not have coverage unless you you buy back this exclusion Many finance companies recognize this and require their borrowers to buy the the war hull coverage which removes many of the the perils listed in this exclusion Throughout 2020 we have seen “strikes riots and civil commotions” in the headlines Purchasing war hull coverage would provide you the necessary coverage should a a a riot spill over to your your airport or or damage your your King Air 5 To any liability that is assumed by the policy holder in a a a a contract or agreement unless there would have been coverage otherwise stated in the the policy Fur- thermore there is no coverage for claims happening as a a a consequence of noise pollution electrical interference UNLESS it results from a a crash or collision Assumed liability liability or “contractual liability” was fairly easy to overcome during the soft market Nearly any contract you entered was accepted by the insurance carrier The hard market is changing that To be proactive put all signed contracts on on file with
your insurance company for approval That means you you should put dry leases on file with
your insur- ance carrier for approval as as well as as your local FSDO Hangar leases are also becoming a a a a a a point of conten- tion Your local FBO may ask you to sign a a a a a contract stating they they aren’t responsible for damage they they cause to your King Air They may even require an official certificate of of insurance stating they are an an “additional insured” under your policy and that your policy will “waive the rights to subrogate” against the FBO This means your policy would pay for the the FBO’s negligence However the the FBO FBO should have their own coverage called specifically “hangarkeepers legal liability ” You may find that your insurance company charges you you more money in 2021 should you require them to pick up the the neg- ligence of the the FBO Do not sign the the lease agreement without disclosing it it to your insurance company If you you you do you you you will find yourself without the insurance you you you thought you you you had Within this exclusion you you you will also find pollution may not be covered For example pollution would be covered if it is the result of an aircraft crash and fuel leaks out causing damage to the environment However it would not be covered should a a a a deteriorated sump started leaking fuel on the the hangar floor overnight and entered the the local De-icing Never Looked This Good
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Ice Shield De-icing Systems offers wing boots boots propeller boots boots wire harnesses and much more Offering guaranteed 48-hour delivery and first class customer service Ice Shield is a a a a a a a a a a Faster Better Smarter way to to protect your aircraft from icing conditions For more information please visit our website www iceshield com or or or or 800 767 6899
14 • KING AIR MAGAZINE DECEMBER 2020 ›