Page 16 - March19

Understandably, you don’t want to pay more premium.
So, the focus shifts to how you, the operator, can convince
the underwriters you are a good risk and won’t cost them
any money during your policy period. How can you get
your “discount”? The answer is risk management.
Sophisticated and intelligent insurance buyers in
your supply chain have been taking advantage of you.
To keep your rates in check, put everything on the
table and objectively assess how you can manage risk
and push back on those in your circle who try and push
or limit their liability on to you and your insurance
company. Look at your operation from the underwriter’s
perspective to effectively evaluate your risk profile:
The following bullet points are in no particular order,
but are all among the most important items to manage
your risk from an underwriter’s perspective:
= Limit pilots to operating only two different types
of aircraft in the flight department.
= Simulator-based training every six months. If
you are operating two different types of aircraft,
alternate the aircraft trainings every six months.
If you only operate the King Air, then at a
minimum go to simulator-based training every 12
months in make and model.
= Annual “Upset Recovery training” or “All
Attitude training.”
= Implement NBAA (National Business Aviation
Association) resources, such as International
Standards for Business Aircraft Operations.
NBAA has a plethora of material to help you
professionalize your operating environment.
Does someone in your flight department
leadership team hold a CAM (Certified Aviation
Manager) designation?
= Create or overhaul and update the Flight
Operations Manual to include minimums for new-
hire pilots, operating minimums with regard to
runway environment, duty day limits and other
manageable criteria.
= Review all of your contracts with suppliers,
such as hangar lease agreements and third-
party maintenance contracts. Include your list
of contract pilots and the contracts you have in
place with them.
= Are you dry leasing your aircraft to third
parties? You have now opened yourself, and your
insurance carrier, to potential payouts in the
event of a claim.
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­ KING AIR MAGAZINE MARCH 2019