Page 21 - Volume 13 Number 10

So what do we do when bodily injury or property damage occurs due to our activity at the airport? It is very common for corporate flight departments to have Emergency Response Plans (ERPs). While they are designed for what the industry calls “cat losses” (catastrophic losses) where an accident occurs and the aircraft is damaged and passengers are injured or deceased, I always encourage adding a section to their plan for attritional losses. The NTSB and FAA document what action items should be taken for something as minor as causing “$25,000 in property damage as a result of operating the aircraft.” Like the NTSB, the insurance company attempts to objectively address the process for notifying them in the insurance policy under the section called “conditions.”
All aircraft polices have a “conditions” section and will outline what the insured is required to do for a liability claim as opposed to a claim for actual damage to the insured’s aircraft. Below is wording from Allianz’s aircraft hull and liability policy form AGCS-AC 1400 (09-09). Under the “Conditions” section of this policy it states:
3. Notice of Occurrence, Loss, Claim or Suit
a. The Named Insured must promptly notify the Company of an occurrence that may result in
a claim. Such notice shall be in writing to the Company claims notification address which is set forth with this policy. Such notice shall include all of the following:
1. particulars sufficient enough to identify the Insured,
2. how, when and where the occurrence took place and
3. the names and addresses of any injured person and witnesses.
b. If claim is made or suit is brought against the Insured, the Named Insured must see to it that the Company receives prompt written notice of the claim or suit. The Named Insured and any other Insured involved must:
1. immediately send the Company copies of any demands, notices, summonses or legal papers received in connection with the claim or suit,
2. authorize the Company to obtain records and other information,
3. cooperate with the Company in the in­ vestigation, settlement or defense of the claim or suit and
OCTOBER 2019
KING AIR MAGAZINE • 19