Page 16 - Volume 13 Number 5

Is it Time to Switch
Insurance Carriers?
by Kyle P. White
As a consumer, you buy many different insurance policies. When was the last time you switched insurance carriers for one or more of your policies? If you’ve switched recently, what were the driving factors behind this decision and were there any repercussions or risk in doing so? If you’ve moved an aircraft policy, the answer is yes, there is risk and there could be consequences.
When something changes, human nature is to react. Just like flying the King Air, the normalcy of a flight is comforting. The operations are consistent – plan the trip, run the checklist and operate the aircraft. Only when something changes do we react, ask questions and make changes to get us back on the desired path. The aviation insurance market is changing and King Air owners are reacting.
With non-aviation policies, I’ll confess, I’m not an expert, nor do I read them from cover to cover. Similarly, I can assume, most of you reading this article don’t read your aircraft policies from start to finish. King Air owners trust their insurance broker to help them make informed decisions. We all recognize change. The big change that gets everyone’s attention is price – how much was paid last year versus the current bill. While understandable, price shouldn’t be the only reason to change insurance companies.
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There are other changes that should be taken into consideration. Has your exposure or risk profile changed? What about your desire to carry a specific coverage or liability limit? Has your carrier’s appetite for your risk profile changed, or are they eliminating an ancillary coverage that is important to you? If the answer is “yes” to any of these questions, then it is probably time to take a deep dive into your insurance renewal and contemplate changing insurance carriers for your King Air policy. As with most things though, there are risks in switching insurance carriers. To be an informed consumer, be aware of these possible ramifications before making your final decision.
Aircraft hull and liability policies are very broad and cover many perils. They are “all risk” contacts that specifically state what is not covered. If the policy does not state something is excluded, then you have coverage. Here is a true scenario to serve as an example on why it is important to consider possible ramifications before switching insurance carriers:
In early April I received a call from an aircraft broker who wanted my opinion on a situation his client was facing. The client was selling his King Air, which was currently undergoing a pre-buy inspection and generally where issues can arise that instigate a phone call to the insurance company. The list of repairs and squawks
MAY 2019