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Aviation Insurance Update – January 2023
Posted By Benjamin Peterson
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 Policy | Company | Numbers/ Sales | Coverage | Premium |
| Products Liability | Manufacturer of dye penetrant materials used in non destructive testing of engine and airframe components | Non Military $6,000,000 Military $2,000,000 Total $8,000,000 | $5,000,000 Products and Completed Liability | $12,000 |
| Products Liability | Manufacturer engine blades and bearings | $15,000,000 | $20,000,000 Products Completed Liability | $70,000 |
| Commercial General Liability | MRO based in FL | $7,000,000 Fixed Wing Turbine | $10,000,000 Liability | $140,000 |
| Commercial General Liability | Part 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 Liability | MRO in FL, had claim 4 years ago | $2,800,000 Fixed Wing Turbine | $10,000,000 Liability | $75,000 |
| Aviation Work Comp | Part 135 helicopter; Government Employer at Air Force Base | Total Estimated Payroll $16,000,000 | $1,000,000 Liability | $170,000 |
| Aviation Work Comp | Gulfstream IV Flight Department Part 91 | Pilots $400,000; Mechanic $160,000; Clerical $110,000 | $1,000,000 Liability | $10,000 |
| Aviation Work Comp | Challenger 650 Flight Department Part 135 | Pilots $425,000; Mechanic $140,000 | $1,000,000 Liability | $11,000 |
| Defense Base Act (DBA) Workers Compensation | Government Employment Contractor with employees in Japan | Pilots or Air Crew $282,000; Repair Maintenance $137,000 | $56,000 | |
| Autos for Gov’t Contractor | Cargo Vehicles and Airside Shuttle Vans | 6 Autos | $1,000,000 Liability | $18,000 |
| FBO Autos | FBO based in FL | 4 Autos | $1,000,000 Liability | $15,000 |
| Airport | Airport in Texas, Public Airport but Privately Owned | Sell 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 |
| Drones | Construction Company using drones to view properties | $10,000 in Drones Property | $10,000,000 Liability | $8,000 |
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.