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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. 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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18 • KING AIR MAGAZINE
JULY 2024