Page 18 - Volume 14 Number 1

the repair bill is going be 100% paid for by the insurance company. For example, if a time-limited part, such as a propeller or engine, is damaged the insurance company will prorate the hours used against the repair bill. The term is called “betterment.” Insurance is designed to make you whole again, not to profit from. If insurance companies didn’t deduct for this, they’d have claims on PT-6s every 3,599 hours, one hour before they are due for overhaul.
During the claims process, you may need to sign a “partial proof of loss.” This simply means that you are stating partial funds need to be released to begin work. By signing this you aren’t releasing the carrier from their obligations going forward, you will do that once the final bills are to be paid and the document is then called “final proof of loss.”
Depending on which insurance policy you bought, you may be entitled to reimbursement for “trip interruption” or “extra expense for substitute aircraft.” Many aircraft owners don’t realize how valuable these ancillary coverages are until they find themselves with an aircraft that is out of service for months due to the covered loss. Document these expenses if you have these coverages. The carrier will pay you the difference between the actual cost to use a substitute aircraft less the D.O.C. (Direct Operating Cost) of your King Air. We typically
see this portion of the claim exceed the actual cost to repair the aircraft.
The claims process to bring your King Air back to life could be a long and stressful event that takes a significant amount of your time and cost you and your insurance company millions of dollars. Proactively prepare for a claim by having a solid insurance program, an ERP in place, a hangar lease contract review and other risk management strategies. Preparing and managing your risk is the key to success in this hardening market. KA
Kyle P. White is an aviation insurance specialist for a global insurance brokerage company. He has professionally flown King Air 90s and B200s and holds an ATP and multi-engine instrument instructor license. You can reach Kyle at kpwhite816@gmail.com
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16 • KING AIR MAGAZINE
JANUARY 2020