Here’s a scenario that is a common concern for growing companies. Your company continues its rapid growth, including the opening of new branches in cities not serviced by the airlines. The advantages and efficiencies of transporting your executives and employees to these locations via private aircraft are apparent, but the potential frequency doesn’t warrant purchase of an aircraft - yet. A decision is made to charter aircraft on an as-needed basis. Now, you currently have a flight department operating two jets, but one is down for maintenance and several key executives need to charter an aircraft to attend an important sales meeting. In both cases, your company has taken on a large liability exposure. From a risk management perspective, this exposure seems somewhat benign. After all, our employees are simply riding in the back of an aircraft we don’t own.
As we are all acutely aware, you can be sued even if it wasn’t your fault. In the case of an aircraft accident, if you were in the “loop of commerce”, you will be brought into the lawsuit. A charter flight made on your behalf puts you squarely in the picture. Let’s talk about some potential insurance ramifications when chartering an aircraft.
Chartering a plane is perhaps one of the most common, straight-forward aircraft exposures and one of the main reasons non-owned aircraft coverage is part of many corporate aircraft policies. If your flight department has temporary access to another plane that is not an outright charter, both the exposure and the appropriate coverage is a bit more complicated. Since each policy has varying degrees of non-owned protection for this particular use, it is very important to discuss this exposure in depth with your AssuredPartners Aerospace broker who can help you navigate the nuances of this important coverage.
Contact us today so you can leave your worries on the ground and experience the Power through Partnership AssuredPartners Aerospace offers.
The physical damage coverage on your airplane is a fixed amount of exposure. That is, the maximum you stand to lose is the value of the aircraft, which is known. However, with liability insurance,...
Flying to Mexico can be an exciting adventure, whether for business or pleasure. However, it’s crucial to understand the insurance requirements to ensure a smooth journey. One common question pilots...
Switching aviation insurers can seem like a straightforward decision, especially if you’re looking for better rates or more comprehensive coverage. However, there are several potential downsides to...