|Aircraft insurance--- sounds dull
doesn't it? - Consider this...
A hypothetical but
A passenger was injured in a
recent crash due to my negligence. He's suing for
$1 million, but his injuries were only $125,000.
Either way, the car, home, bank accounts and much
of my future earnings are at risk. Got your
I hope so. It could happen to
Many who call me about
insurance ask what coverages they need. Foremost
is Third Party Liability coverage. Party number
one is the person who buys the coverage. Number
two is the insurance company who contracts to
defend party number one should he be justly or
unjustly sued, and pays up to the limits on the
policy should the judge so order. Third parties
are those injured, killed or who's property was
damaged or destroyed. Without third party
liability coverage you may have to pay the third
party out of your own pocket.
Another case: The landing was
perfect...but the gear was up! How common, and how
embarrassing. In this accident no one but the
pilot incurred property damage or bodily injury.
Third party liability coverage will not protect in
this instance. Only physical damage coverage for
the airplane will repair the prop, engine and
fuselage. This is commonly called "hull"
Hull coverage is often sold
with deductibles, like auto insurance. It can be
most handy if it saves $25,000 or so out of your
pocket to repair your airplane. It might even help
keep peace in the family if the bank account
remains in tact.
Now, take Medical
Coverage--please! Some claims adjusters I know say
this coverage has helped avoid many law suits.
Medical pays for minor injuries regardless of
fault, and there is no deductible.
Suppose that, in an excited
state, you close the door on your passenger's
hand, causing a trip to the emergency room and
five stitches at a cost of $1,000. Now your friend
(ex-friend) is thinking of suing. A suit may be
avoided if the adjuster can pay the loss out of
the medical coverage thereby avoiding lost work
time for court appearances and further
embarrassment. Many carriers include $1,000
medical for no charge, in some cases up to $3,000
per occupant including the crew for no charge. If
a small premium charge, say $20 to $50 per year,
is made its well worth it.
Aircraft accidents are
painful, almost unbearable, if someone is hurt or
killed due to your negligence. Sometimes the only
comfort you may have is knowing the injured
parties are compensated for their loss and your
family's security is not jeopardized in the