Aircraft Trader Insurance

1. How is Aircraft Trader insurance different from other aircraft policies?
2. When I am selling an aircraft covered on the Aircraft Trader policy is the pilot taking a demo flight covered?
3. Is there a limit to the number of airplanes I can insure on my Aircraft Trader policy at any one time?
4. How often can I add and/or delete aircraft from the Aircraft Trader policy?
5. When I sell one of my airplanes and need to have it ferried to the purchaser's location, will that flight be covered?
6. Are there any limits to the type of aircraft I can insure on this policy?
7. The Federal Aviation Regulation's allow me as a Private certificated pilot to demonstrate and sell aircraft; does your Aircraft Trader policy require me to have a Commercial pilot certificate?
8. I sell aircraft on a consignment basis where I don't own the aircraft, when I sell a plane the sale transaction goes from the current owner to the purchaser. Can I purchase an Aircraft Trader policy based on this business model?

1. Q: How is Aircraft Trader insurance different from other aircraft policies?
   A: The Aircraft Trader policy is our standard Direct Approach Aircraft Policy that has a specific endorsement added that expands the standard policy to include coverage for buying and selling aircraft on a limited basis. This endorsement also recognizes that your ownership and use of the aircraft is for the purpose of selling that aircraft. Click here to read how the Aircraft Trader Endorsement changes the Direct Approach Policy.



2. Q: When I am selling an aircraft covered on the Aircraft Trader policy is the pilot taking a demo flight covered?
   A: No. The Aircraft Trader policy is written to provide protection to you as the policyholder and seller of the aircraft. If you are the pilot of a demo flight and there is a covered accident the policy will protect you as the policyholder. If any other pilot is operating the aircraft and they meet the pilot warranty they are an approved pilot and the policy will protect you in the event of a covered accident. The policy does not insure the other pilot for their liabilities when operating your aircraft. They should have their own non-owned aircraft policy (click here for non-owned aircraft insurance rates and options) to protect themselves in the event they are liable for the loss or accident.



3. Q: Is there a limit to the number of airplanes I can insure on my Aircraft Trader policy at any one time?
   A: Since this policy is designed for the aircraft owner who sells aircraft on a part time or "hobby" basis you are limited to insuring a maximum of six (6) aircraft on your policy at any one time.


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4. Q: How often can I add and/or delete aircraft from the Aircraft Trader policy?
   A: You can add or delete up to ten (10) aircraft each policy year. If you are buying and selling more than 10 aircraft in a year your activity is more than our policy is designed to insure.



5. Q: When I sell one of my airplanes and need to have it ferried to the purchaser's location, will that flight be covered?
   A: The answer depends upon the timing of the sale of the aircraft. If the sale of an aircraft listed on the policy is completed (transfer of funds & signing of the bill of sale) after delivery of the aircraft to the purchasers location there will be coverage for a covered loss during the delivery process. If a listed aircraft is sold and then the delivery takes place there is no coverage under your policy. In that case it is the responsibility of the purchaser to have insurance in place to cover any losses or accidents.



6. Q: Are there any limits to the type of aircraft I can insure on this policy?
   A: Yes, the Aircraft Trader policy is available only to non-pressurized single engine land aircraft with a standard airworthiness certificate.


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7. Q: The Federal Aviation Regulation's allow me as a Private certificated pilot to demonstrate and sell aircraft; does your Aircraft Trader policy require me to have a Commercial pilot certificate?
   A: No. As long as all underwriting guidelines are met, you only need to have a current Private Pilot certificate in order to purchase our Aircraft Trader policy.



8. Q: 8. I sell aircraft on a consignment basis where I don't own the aircraft, when I sell a plane the sale transaction goes from the current owner to the purchaser. Can I purchase an Aircraft Trader policy based on this business model?
   A: As this arrangement for insurance is more complex than your owning and selling the aircraft please call us at (888) 241 7891 so we can discuss your situation and help you obtain coverage.


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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.