About Your Policy Renewal

Renewal is not automatic

Unlike some motor vehicle, homeowners, and other insurance policies, aviation insurance policies do not renew automatically. You are responsible for authorising specific renewal instructions. You should mark your expiration date on your calendar and allow sufficient time to get the renewal processed before the expiration date.

Aviation insurance policies, with few exceptions, are written for a one-year period. They expire at 4pm on the expiration date shown in the policy. It’s best to think of the day before as the absolute least you will have coverage. If the expiration date (or the day before) falls on a weekend or holiday, then the absolute latest to get the renewal bound would be the last working day before the expiration date.

Of course we don’t recommend waiting until the last day to arrange your renewal. When we receive your renewal authorisation we must prepare and send renewal documentation to the company, to you, to any lien holders, and, in may cases, to other certificate of insurance holders.

We need your instructions

We endeavour to obtain updated underwriting information early enough to present your risk to the appropriate markets for coverage proposals. Then we try to provide you with our recommendations in time to get your approval and to get all the paperwork processed.

We normally send out a Renewal Letter around 21 days before the expiration date. In most cases the form shows some of the most recent information in our files such as pilot hours, etc. We recommend you keep copies of previous underwriting forms to make updating current information a little easier. The sooner we receive the updated underwriting information the sooner we can get renewal proposals.

Accurate pilot information is very important. The additional experience acquired during the past year can result in improved premiums and coverage limits available (based on current standards), especially with pilots who have transitioned into more complex aircraft.

Your hull insured value should be reviewed and adjusted, if necessary, to reflect the aircraft current market value. Any additional equipment added, or improvements made such as new paint or interior should be taken into account.

Keeping you as a customer by renewing your policy is very important to us!

Why should I use an Aviation Insurance specialist?

Pick your aviation insurance broker carefully and steer clear of amateurs. There are very few aviation insurance specialists compared to the total number of general insurance brokers. A general broker usually will know only one or perhaps two aviation underwriting companies at best and will have such a small volume of aviation business that he will not be able to match the client with the most appropriate company.

Unlike many other lines of insurance, aviation insurance policies vary greatly in content and coverage. It is very important that your broker understands the broad forms from the limited forms. Although you may qualify or want a restricted form of coverage, your broker should have the knowledge and ability to counsel you on the differences.

This is a relationship business. It is important that your broker has a good working relationship with the underwriter and the claims departments of the companies from which he is requesting quotes.

Should I shop around for the best price?

There are only a small number of underwriters capable of writing your insurance. If you have selected a strong broker who specialises in aviation insurance, he can approach the entire group for you. Pitting two or more brokers against each other is usually counter-productive because an underwriter will only extend terms to one broker at a time.

The first quote or declination given by a company must remain the same for any subsequent broker you appoint. Your selection process should be that of choosing your broker. If only one broker is presenting your risk, the underwriter will know that this is the person with whom he must deal. You eliminate the confusion of multiple brokers contacting the same underwriter and keep your insurance marketing at a most professional level.

What if I do not like my broker?

If you do not like your broker or are not confident in his service or ability, select a new broker and give him the authority to represent you by “Letter of Appointment”. Your new broker will be glad to provide you a copy of the desired wording.

I don’t have time to deal with the proposal form; can’t my broker do it for me?

We see many clients treat the proposal process as necessary evil. In reality, this is one of the most important aspects of the insurance placement process. The better you and your broker present your risks to the underwriting community, the better response you will have. This is reflected in broader coverages and premiums savings. Keep in mind, only you can do the proper job in preparing your resume. Your broker does not know your history as well as you. So, a word of advice – help the broker develop the underwriting submission and give this task priority.

How critical is correct information? Can I just estimate my pilot hours?

It is important to give accurate information to underwriters. Keep your pilot logbook up to date. If you must estimate on such things as pilot hours, it is important that you underestimate. Many policies will make the hours and ratings given on the pilot’s underwriting submission a requirement of the policy. If you overestimate your experience, you may find yourself not meeting the minimum standards set for you in your policy. If you employ a pilot, it is up to you to assure the information furnished by your pilot is accurate. Check his/her logbooks.

I’m not very familiar with the make and model of my aircraft – am I at risk for being rejected by the underwriter?

If the aircraft to be insured is of a make and model unfamiliar to you, work with your broker to develop a pilot training and transition plan before you or anyone approaches the underwriter. A strong transition plan takes the burden off the underwriter and may turn an underwriting rejection into a good quotation.

Keep in mind, the underwriter is paid to accept or reject the risks as it is presented. If accepted, it is his job to price the policy and outline the coverage he is willing to extend for that price. It is not his job to engineer the risk to make it more acceptable. That is up to the client and the broker.

How important is it for me to continue pilot training?

All pilots, professional or pleasure, want to be thought of as highly qualified in the cockpit. Some however, don’t want to prepare, train, practice and pay the price to be among the best. Remember, the underwriting community has heard all the bragging, the excuses and the broken promises about pilot skills and training.

Don’t overlook the importance of recurrent training. Some underwriting companies are requiring annual schools for all pilots flying turbine, jet or high performance piston equipment. Underwriting statistics have long proven the school-trained pilot has fewer losses. If we know annual training is required, we may as well make it a vital part of our underwriting submission. We look more professional and will be rewarded with a better underwriting response.