Home » Aviation Insurance Update – January 2023

Aviation Insurance Update – January 2023

Posted By Benjamin Peterson

Published December 27, 2022

Recent Aviation Insurance Quotes for Work Comp, Products, Excess, GL, FBO, Airport, Property, and Drones

Quick market update for Aviation insurance in January 2023.

  • Has your Workers’ Compensation carrier non-renewed your Aviation accounts?
  • Sunset Aviation Insurance can place your Workers Compensation risks and provide coverage for the other lines.
  • QBE is non renewing their Workers Compensation book of business and we have the markets to help you replace them.
  • Insurance companies start to renew their reinsurance treaties between December and February. I’ve heard there’s some big increases in their premiums which will be passed along to the aviation market in 2023.
  • There’s still competition among insurance companies for high quality accounts with no losses in past 5 years
  • Last year for 100% Bonus Depreciation; 2023 BD is 80%
  • NBAA’s Salary Survey shows Aviation Salaries Continue to Rise 42% Compared to Last Year
Type of PolicyCompanyNumbers/ SalesCoveragePremium
Products LiabilityManufacturer of dye penetrant materials used in non destructive testing of engine and airframe componentsNon Military $6,000,000
Military $2,000,000
Total $8,000,000
$5,000,000 Products and Completed Liability$12,000
Products LiabilityManufacturer engine blades and bearings$15,000,000$20,000,000 Products Completed Liability$70,000
Commercial General LiabilityMRO based in FL$7,000,000 Fixed Wing Turbine$10,000,000 Liability$140,000
Commercial General LiabilityPart 135 helicopter; Government Employer at Air Force Base$125,000 in AZ maintenance; $7,500,000 in Gov’t contract$3,000,000 Occ.; $6,000,000 Hangarkeepers; $1,000,000 Products$35,000
Commercial General LiabilityMRO in FL, had claim 4 years ago$2,800,000 Fixed Wing Turbine$10,000,000 Liability$75,000
Aviation Work CompPart 135 helicopter; Government Employer at Air Force BaseTotal Estimated Payroll $16,000,000$1,000,000 Liability$170,000
Aviation Work CompGulfstream IV Flight Department Part 91Pilots $400,000; Mechanic $160,000; Clerical $110,000$1,000,000 Liability$10,000
Aviation Work CompChallenger 650 Flight Department Part 135Pilots $425,000; Mechanic $140,000$1,000,000 Liability$11,000
Defense Base Act (DBA) Workers Compensation Government Employment Contractor with employees in JapanPilots or Air Crew $282,000; Repair Maintenance $137,000$56,000
Autos for Gov’t ContractorCargo Vehicles and Airside Shuttle Vans6 Autos$1,000,000 Liability$18,000
FBO AutosFBO based in FL4 Autos$1,000,000 Liability$15,000
AirportAirport in Texas, Public Airport but Privately OwnedSell 30,000 gallons of 100LL fuel per year; ~$100Kin sales. They did have a loss in 2019 which affected their premium$5,000,000 CGL, Products, Personal Injury$25,000
DronesConstruction Company using drones to view properties$10,000 in Drones Property $10,000,000 Liability$8,000
Aviation Insurance Policy Quotes, January 2023

What We’re Talking About

Do Student Pilots and CFI’s need Non-Owned Insurance? This is our most recent article about flight schools, CFIs, and Student Pilots. Also many charter clients purchase Non-Owned Insurance to protect themselves, their families, and their companies from liability from any third party. It includes the cost for professional defense, bodily injury, and property damage.

There’s an aviation saying that goes, “There are OLD pilots and there are BOLD pilots, but there are no OLD BOLD pilots.” We recently published an article to help 70 Year Old Pilots navigate the aircraft insurance industry along with Tips, Risks, and Pricing. What type of planning should be done when a pilot approaches 70 years old and wants to continue their flying careers into their 80s? An insurance company’s risk tolerance for 70 year old pilots is based on a case by case basis which often is a combination of previous claims or loss ratio, experience in previous years leading up to 70, and focus or emphasis on safety. Check out our article to learn how to prepare and what to expect. 

Benjamin Peterson

Graduated from the University of North Dakota with a degree in Commercial Aviation as a Pilot and Flight Instructor. My first professional job was working for Cirrus Aircraft as an instructor.

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