Frequently Asked Questions:

1. Q: How can I recognize the differences in aviation insurance policies?
   A: Because state law does not regulate aviation insurance extensively, policy language varies considerably. Be sure to ask for a sample policy in an easy-read format and review it to understand what is and is not covered. Since every aircraft owner has different coverage needs, be aware that the least expensive policy may not provide the best protection to meet your needs. It is important for the insured to read the policy fine print because while coverage may appear to be similar from one policy to the next, the policy's exclusions may cause you to pay more for uncovered losses. Avemco's policy is clear, concise and comprehensive and it focuses on inclusions, not exclusions.



2. Q: What is liability insurance?
   A: Liability insurance protects you against claims arising from Bodily Injury or Property Damage you may have caused to others. Your insurance company's commitment is to defend you if you are sued, and if you are at fault, to pay for the damages according to the terms of the policy. This coverage is not first party medical or life insurance (the policyholder/insured pilot would be a first party), but rather, liability coverage for claims made against you by third parties for which the law holds you legally liable.



3. Q: What limits of liability should I carry?
   A: Because different people have different needs, there is no standard recommended amount of liability coverage you should carry. You need to consider factors such as your personal assets, earnings, the liability limits you carry on your other insurance policies such as auto or homeowners, whom you carry as passengers, how the aircraft is used, and how much insurance you can afford or that is available, among others. You might also want to ask your insurance representative about the most popular limits purchased by owners of comparable aircraft, although this will probably not be the principal factor on which you rely. Obviously, buying the most coverage you can reasonably afford and that is available is your safest bet. Also remember that as important as the limit of liability is, the ability of your insurance company to resolve claims within those policy limits is just as important. You want to be sure that the company defending you has a proven track record of success in the complex world of aviation litigation.


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4. Q: What is a "Combined Single Limit of Liability" or "smooth" limit?
   A: Most aircraft insurance policies contain liability coverage sub-limits. An example would be, $100,000 Bodily Injury each person per accident $1,000,000 Property Damage per accident, with an overall accident limit of $1,000,000. With sub-limits, the most that can be collected under each coverage per accident is the stated maximum limit. A combined single limit (CSL), often called a "smooth" limit, has the total stated limit available with no specific sub-limits for Bodily Injury or Property Damage claims. See question 8 for information on limits available from Avemco Insurance Company.



5. Q: Are my legal costs included in the liability coverage?
   A: Under Avemco's policy, we continue to pay your legal defense costs even if your limits of liability have been exhausted by the payment of judgments or claims. Our policy also provides up to $5,000 for legal defense costs if a pilot enforcement or civil penalty action is brought against you as a result of a covered accident. Since you may have an FAA action brought against you if you have an accident, this coverage is important. While most policies provide for a legal defense for claims by passengers, very few provide protection for FAA enforcement actions.



6. Q: How do I ensure my family is protected when they fly with me?
   A: Avemco's policy will pay for Bodily Injury to your spouse, parent or child caused by an accident for which you are legally liable. Also, most aircraft insurance policies offer medical expense coverage that can provide you and your family with additional medical coverage. Please note, however, that aviation insurance is "third party" liability and only responds if you are legally liable to someone else for the accident. In many cases, a lawsuit may need to be brought against you for negligent actions to collect for third party injuries, even if the "third party" is a family member.
   
   Life insurance is one important way to protect your family when you fly as well. If you are not sure that your or your family's current life insurance policy covers general aviation activities, check with the life insurance specialists at the Avemco Insurance Agency, Inc. at (888) 635-4297 or click here to request a quote today.


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7. Q: What is the difference between a direct writer and an independent agent?
   A: Avemco is a direct writer, which means you deal directly with the insurance company. Avemco's Aviation Underwriters are salaried employees of the company who specialize in aviation insurance. Most requests can be handled or resolved immediately with one telephone call. In addition, Avemco has a national network of claims representatives on immediate call throughout the U.S. Avemco specializes in aviation insurance coverage, serving the needs of general aviation pilots for over 40 years.
   
   An independent agent, on the other hand, is a commissioned sales person who deals with many companies who offer different policies. Remember that aviation insurance policies are not standardized, and therefore independent agents may find it more difficult to be intimately familiar with all of the coverages and policies of the companies they represent. The agent acts as an intermediary between you and the insurance company so you never communicate directly with the company that is providing the insurance coverage(s).



8. Q: What is the highest limit of liability that Avemco will provide?
   A: The maximum per accident limit of liability being offered by Avemco Insurance Company currently is $1,000,000 combined single limit (see definition above) for all Bodily Injury and Property Damage in any one accident subject to meeting certain underwriting criteria. Various combinations of Bodily Injury and Property Damage Liability limits, with a maximum per occurrence limit, are available.



9. Q: Is there liability coverage if I injure a co-owner of my aircraft?
   A: Coverage varies significantly among insurance companies. The Avemco policy does provide liability coverage between insured persons like partners or flying club members when they fly together. This is a very important feature to look for since it is likely a partner or another flying club member will be with you in the aircraft on numerous occasions.


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10. Q: What coverage options are generally available on an aviation insurance policy?
    A: Coverage options vary widely from company to company. The most common coverages available through Avemco are as follows:
    
    

    •	Liability for Bodily Injury and Property Damage to third parties that can be purchased as including or excluding occupants of the aircraft.
    •	Aircraft Damage (hull) which can be purchased as including or excluding in-flight.
    •	Medical Expense, which includes payments for medical bills and funeral expenses of an occupant of the aircraft, including the pilot. Avemco's policy also includes payments of $100 each day you or other occupants are hospitalized, up to the medical expense policy limits.

    
    
11. Q: How can I reduce my insurance premium?
    A: There are many options, depending on your needs. For instance, consider the following options:  Remove occupant liability coverage if you don't carry passengers; change "including in-flight" aircraft damage coverage to "excluding in-flight" aircraft damage coverage during extended periods of time that you're not using your aircraft; select a higher deductible; or hangar your aircraft. You may also participate in the Avemco Safety Rewards Program and be eligible to save up to 10% on your annual premium and become a more educated pilot at the same time. (Click here for more information)



12. Q: Is there any type of additional training that would lower my premiums?
    A: Avemco's Safety Rewards is a two-part program, ground and flight, that rewards pilots for participating in specialized training to improve their skills as pilots. Participation can save up to 10% on your annual insurance premium. To be eligible for the ground portion, complete any FAA Safety Team (FAASTeam) WINGS Knowledge course and receive a 5% annual premium credit. Take an Avemco-recognized flight training course, including WINGS-approved training and become eligible for another 5% annual premium credit. Or complete both, obtain an upgraded certificate or IFR and become eligible for the full 10% savings. And completion of any of these approved programs qualifies you to receive the savings from Avemco immediately upon notification to us. No more waiting until your next renewal.


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13. Q: What factors do insurance companies use to determine my premium?
    A: Each insurance company uses different criteria to determine your premium. Some of the most common factors include logged flight experience, aircraft make and model, limits of coverage, whether the aircraft is hangared, possessing an instrument rating, claims-free experience, deductible, and how the aircraft is used. The insurance company then applies prior experience in these various "classes" of business to predict future results, and the premium is determined.



14. Q: Is there a premium difference if I register my aircraft in the name of my business?
    A: If the aircraft is to be used for pleasure and business as defined by the Avemco Direct Approach policy, the premium is the same for you or your business as long as your business is not an aviation business.



15. Q: Does your policy allow me to make a profit from a named approved pilot who uses my aircraft?
    A: Yes, Avemco's policy allows the insured to be paid by any pilot named on the data page for their personal, non-commercial use of your insured aircraft. This is provided to allow you to be reimbursed by pilot friends who use your aircraft. It is not meant to be an aircraft rental policy and Avemco monitors the number of pilot changes made to avoid such a situation.
    
    The policy allows the sharing of expenses of the ownership, maintenance and use of your insured aircraft among the approved named pilots under Item 6A on the policy data page.


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16. Q: If I start a policy for a pending purchase will there be a penalty for canceling if the deal falls through?
    A: You may start a policy for any effective date that is in the future. If the purchase of the aircraft is not finalized, inform Avemco the next business day with a fax or mail request, and we will cancel the policy with no penalty.



17. Q: In the event of a total loss to my aircraft during the policy period, am I entitled to a premium refund for the remainder of the policy period?
    A: Not always, it varies from policy to policy. With Avemco you do receive a refund of the unearned premium. Other policies may fully earn the hull premium in the event of a loss; which means no premium is refunded.



18. Q: What is an A.M. Best rating?  What rating should I look for in an insurance company?
    A: The A.M. Best rating reflects an insurance company's financial strength and its ability to meet contractual obligations. The rating categories range from A++ and A+ (Superior) to F (in liquidation). It is recommended that you select an insurance company that holds at least an A+ rating, and specializes in aviation insurance. Avemco's A.M. Best rating is A+ (Superior).


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19. Q: How does your company define a "non-commercial" flying club?
    A: A non-commercial flying club is defined as being one or more aircraft owned by more than five individuals with equal ownership, operating under by-laws, and being used for personal and not-for-profit use. For more frequently asked questions on Flying Clubs click here.



20. Q: What are some common exclusions that can void my coverage?
    A: Exclusions vary from policy to policy. Therefore, it is very important that you read your policy, and familiarize yourself with its specific exclusions. If you have any questions about your Avemco aircraft insurance policy, please call for clarification. Check out the article on this web site, "Claim Denials, Why They Happen and How to Avoid Them" for more information on exclusions.



21. Q: How do I report a claim?
    A: Avemco's claims are administered by GAB Robbins Aviation. GAB can be reached by calling (800) 874-9124 during regular business hours Monday through Friday Eastern or anytime in the event of an emergency at (888) 635-4303.
    
    After a claim is reported a field adjuster should contact you within 24 to 48 hours. You can assist in the claim process by having the following documents ready for GAB's adjuster:
    
    

    •	A copy of the aircraft registration.
    •	A copy of the aircraft and engine log book pages showing the date of the last annual inspection.
    •	If your loss was in-flight, the pilot will need to give us copies of his/her license, medical certificate and the page from their log book showing the date of the last BFR.

    
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22. Q: Do I have liability protection after I sell my aircraft?  Why would I need it?
    A: Avemco's policy includes "extended sales coverage" which will provide you with important protection for up to one year following the date of sale of your insured aircraft. This coverage provides you with Bodily Injury and Property Damage Liability for claims that may arise from your ownership, maintenance, or use during the period that it was insured with Avemco. Very few, if any, other policies provide this protection.



23. Q: Are personal belongings of an occupant covered?
    A: Avemco's policy provides up to $1,000 liability coverage for personal effects of each occupant (excluding property belonging to an insured person).



24. Q: Who is permitted to fly my aircraft?
    A: Under Avemco's policy any pilot that you have named on your policy, mechanics employed by an FAA Approved Repair Station in connection with inspection or repairs of the insured aircraft, any CFI while accompanied by a named pilot, or any pilot that meets the qualifications of your open pilot clause (if your policy has one).


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25. Q: Does your policy have any exclusion against landing on a private grass strip?
    A: No, Avemco's policy does not have any exclusion against landing on a private grass strip or any other surface, regardless whether or not an emergency has occurred.



26. Q: Can I get coverage for aircraft damage on my homebuilt if I equip it with an automobile engine?
    A: Yes, Avemco offers coverage for several of the more popular firewall forward (FWF) converted automobile engine packages. Call Avemco to determine your aircraft engine's insurability. Aircraft insured with other automobile engines may be eligible for coverage once the engine has accumulated 100 flight hours in the aircraft.



27. Q. Does your company offer coverage for rotorcraft, balloons, ultralights, gyroplanes or gyrocopters?
    A.  No. At this time Avemco does not offer coverage for owned or rented rotorcraft, balloons, ultralights, gyroplanes or gyrocopters.


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28. Q: Does Avemco insure fractional ownership arrangements?
    A: Avemco does not currently insure fractional ownerships. However, partnerships, LLC's, owner operated flying clubs and other shared aircraft ownership arrangements are insurable.



29. Q: Are you able to provide coverage for my flight instructor?
    A: Under some circumstances we can provide liability coverage for a CFI who is providing dual flight instruction to named pilots in the insured aircraft. Call Avemco for more information (888) 241-7891.



30. Q: Do I need to add my CFI to my policy in order to receive dual flight instruction?
    A: No. Avemco's policy provides approved pilot status to any CFI, current in aircraft make and model, while giving dual flight instruction to a pilot specifically named on the policy.



31. Q: Are you able to provide liability coverage for a hangar that I own?
    A: We are able to provide liability coverage for an owned hangar as an endorsement to your aircraft policy. Call Avemco for rates and availability.
    
    And now Avemco Insurance Agency, Inc. is able to offer property coverage through the National Hangar Insurance Program. Click here for more information.


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These FAQs and answers are general in nature and are not intended to address the specific requirements of an individual's policy. These should be discussed directly with one of Avemco's trained staff. In all cases, the terms, conditions of the policy and policy endorsements will determine the outcome of a specific situation.