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Bombardier Challenger Airplane Insurance

Bombardier Challenger Insurance Cost Examples

Bombardier Challenger 650 - Dual Pilot Typed Rated

Coverage Limits Premium
650 Physical Damage $25,000,000 Agreed Value $44,000
Aircraft Liability $300,000,000 Per Occurrence $26,000
Total Annual Premium $70,000

Bombardier Challenger 650 - Dual Pilot Typed Rated - Charter

Coverage Limits Premium
650 Physical Damage $20,000,000 Agreed Value $42,500
Aircraft Liability $300,000,000 Per Occurrence $35,000
Total Annual Premium $77,500

Bombardier Challenger 300 - Dual Pilot Typed Rated

Coverage Limits Premium
300 Physical Damage $12,000,000 Agreed Value $30,000
Aircraft Liability $50,000,000 Per Occurrence $15,000
Total Annual Premium $45,000

Aircraft Summary

The Bombardier Challenger aircraft is a group of business jets that are operated by two professional pilots for Part 91 corporate flight departments and Part 135 Charter. The Challenger 300 is one of the high in demand charter jets from big fleet operators like Flexjets, VistaJet, and NetJets. About 50% of the Challengers are on fleet insurance policies. The other 50% are being insured individually by the owner and operator. 

The newest fleet for Challenger is the 3500, 350 and 650. A new delivery Challenger 3500 costs over $27,000,000.

Liability premium is based on the number of seats, use, and limit. Typically Challenger aircraft have high liability limits between $50,000,000 to $300,000,000 per occurrence. The liability premium typically accounts for 30% of the overall premium. The remaining 70% is from the physical damage hull value. 

For Challengers flying to Europe, there is a minimum War coverage liability limit required of $250,000,000 per occurrence. If the operator doesn’t have these limits they can purchase the increased limit for the European trip. The premium for this is typically $1,500 per trip.

An easy way to estimate or visualize the premium for a Challenger Aircraft is: 0.3%, 0.5%, 1%, and 1.5%

  • 0.3% of the hull value for new Challenger aircraft with a high hull value and well qualified pilots.
  • 0.5% of the hull value for Challenger aircraft with the hull value at $8,000,000, also charter operators with less than 20 aircraft on the fleet 
  • 1% of the hull value for older Challenger or operations that require the SICs to only complete training every 24 months instead of the typical 12 months

Some of the insurance companies have started to lower the ancillary liability limits on individual operator aircraft policies. One in particular is the Extra Expense for Renting Substitute Aircraft or Parts. If the insured has a claim and the aircraft is grounded, the Extra Expense will pay for rental. You may see a limit of $100,000 per occurrence and a 5 day waiting period.

Models We Cover

  • Challenger 300
  • Challenger 350
  • Challenger 600
  • Challenger 601
  • Challenger 604
  • Challenger 605
  • Challenger 650
  • Challenger 800
  • Challenger 650
  • Challenger 3500

Valuation

The best resource for the valuation of a Challenger or any corporate jet is with your local aircraft sales broker. Aircraft BlueBook and Controller.com are also good resources for the valuation and other aircraft in the market. Valuations are based on supply and demand of the market and are cyclical.

Risk Areas

The hardest Challenger aircraft to insure is an old Challenger 601 with under qualified pilots and little to no insight for where or who they are going to do their simulator training with. The Challenger is a serious aircraft that can hold up to 10 passengers so underwriters will take a very close look at all aspects of the operations and specifically the pilots.

Claim History

The Challengers have had some claims on par with other mid size corporate jets but because of the high standards for a dual pilot crew, claims are much less frequently catastrophic. The typical claim that is catastrophic is generally related to pilot error and much less frequently, maintenance.

The typical claim for a Challenger is a bird strike or Foreign Engine Debris (FOD) in the engines on takeoff or landing.

Safety Features

All of the Challengers are twin turbine mid body corporate jets that are operated by two pilots who have completed training in the aircraft. A lot of charter companies and flight departments will have the safety standards called ARGUS, Wyvern, and IS-BAO. What these organizations do is audit the operators safety standards based on Pilots, Operating Procedures, and Safety Record.

The new Challengers have the Safe Flight Auto-throttle system which helps with speed and thrust management in the most critical phase of flight, the takeoff and landing.

Flight Training Centers

Challenger Flight Training Centers are located throughout the US and throughout the world at full motion level D simulators. FlightSafety International, CAE Simuflite, and Simcom.

See our complete list of approved flight schools for more information.

Parts Service Centers

Challenger and Bombardier Authorized Service Centers are located throughout the US and throughout the world.

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