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from the traditional 12 months. Single pilot operations with $100,000,000 liability limits and $5,000,000 hull values were non-issues and could be secured for less than $20,000 per year. In 2004 that same risk exposure, if it could have been done, would have had an annual premium of over $60,000. Owner-flown King Airs, depending on the pilot’s qualifications could get $25,000,000 of coverage, possibly more in recent years. Premiums associated with the owner/pilot operations, have also been very low.
Owner/pilots are typically not offered the “broad form” coverages and expansions that a professional pilot operation can secure. However, in the soft market, many qualified owner/pilots were able to get these policy enhancements for no additional charge. Some were even able to go to non-simulator-based training facilities that are approved by the insurance companies.
With a better understanding of both the hardest and softest market conditions, it is easier to compare the state of the King Air market for the first quarter of 2018. If you took advantage of the soft market by securing the low rates with the best coverages, conditions and pilot requirements, brace yourself. Based on current trends, you most likely will not be getting the, now expected, premium reduction you’ve seen each year for the last decade or more. Chances are, if you had the lowest premium the market offered, you will be getting a flat renewal, meaning no increase or reduction, or a slight increase of three to five percent.
If your operation did not fully partake in the soft market, it is possible there are still some available improvements to coverages and pricing. If you are working with a knowledgeable aviation insurance broker, they should be able to negotiate these on your behalf. As a fellow insurance consumer, I cannot stress enough that while price is important, it should not be your determining factor when purchasing your insurance policy. You didn’t buy the cheapest King Air, you bought the King Air that was right for you and your needs, and then negotiated the price. The same approach should be used in all aspects of purchases for your aircraft, whether it is avionics, paint, pilots or insurance.
As 2018 continues and your renewal comes, focus on how your premium compares to others with similar risk profiles. Your broker can provide you with this information based on their current King Air clients. If your premium is in line with the current market, try and focus on enhancing your ancillary coverages to meet the needs of your exposure. For example; an operator last month disclosed to us that her boss had several friends who ride on their King Air as guests. When doing so, they park their cars in the hangar. Occasionally, they’d have the cars detailed and fueled as a surprise for the passengers. The concern was these vehicles weren’t exactly a Ford Taurus; they were all vehicles valued well over $100,000. This exposure is
MAY 2018
KING AIR MAGAZINE • 11