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Owner Aircraft Insurance

Owner pilot aircraft insurance is referred to as Pleasure & Business. Primarily individually owned aircraft for the owner’s personal use and for which no charge is made and no direct profit is derived.

Coverage Highlights

  • Pilot experience, training, etc.
  • Number of Named Pilots on the policy
  • Age of aircraft
  • Loss ratio
  • Hull value
  • Liability limit
  • Number of Fractional owners and Dry Leases
  • Details of flight operations

What Our Clients Are Saying...

Types of owned aircraft insurance we offer

Owner flown aircraft are typically single pilot aircraft such as:

  • Piper Aircraft

  • Pilatus Aircraft

  • Embraer Phenom

  • Cessna Aircraft

  • Daher TBM

  • Cirrus Aircraft

  • Honda Jet

  • Bell Helicopters

  • Robinson Helicopters

  • Airbus Helicopters

  • MD Helicopters

Pleasure & Business

Pleasure & Business aircraft operations have a higher loss ratio than Industrial Aid (pro pilots) so underwriters take a very close look at all aspects of these operations. These exposures must be underwritten very carefully as the hull values can be several million dollars. Even new single engine or multiengine piston aircraft can be valued above $1,500,000. New multiengine turbine aircraft such as the Phenom 300, Cessna Citation CJ4, and Pilatus PC-24 can see values above $10,000,000.

Pilot Experience and Training

Piston aircraft typically don’t require any form of annual training from a flight school or in a simulator other than maintaining the required FAA requirements for a pilot’s license. Also there’s no minimum flight experience most underwriters require to operate a piston aircraft. You can be a Student Pilot with zero total time and start flying a Cessna with an Instructor. A high valued Cirrus or Diamond on the other hand may require 200 total time and a Private Pilot license.

Turbine aircraft on the other hand will almost always require 12 month or annual training in a simulator or an Aviation Manager approved flight school. Attached list of Approved Schools. It is recommended to have at least Private Pilot License and Instrument rating with 1,000 total time and similar make and model experience. The higher the value of the aircraft the most experience will be required.

Number of Named Pilots on the policy

Most owner flown aircraft operations have one or two pilots listed on the policy like a father-son, husband and wife, owner and friend, or owner and mentor pilot. When you start adding over three or four pilots on the policy it creates a lot of additional work for the broker and underwriters to manage. As a result there’s less underwriting interest and rates will be higher, sometimes much higher. Also there should be a lot of questions about if there is any dry leases and fractional owners involved. Check out our page on Dry Leases (in Commercial Aviation Insurance).

Age of Aircraft

The cool thing about aviation is, every year new aircraft are create and put into the marketplace, but the old aircraft aren’t deleted or deregistered. They’re still out there with value and flying around, provided they are maintained. So the overall value or market cap continues to grow. But older aircraft can have less underwriting interest because, well, they are old and usually lower in value. A good percentage of aviation insurance companies will not provide quotes or insure and aircraft that is older than 25 years due to increased loss ratio or claims and the difficulty or obtaining replacement parts in the event of a claim and repairs being made.

Loss Ratio for claims

You are only required to report losses or claims within the past 5 years. The loss ratio can be calculated by taking your past 5 years losses and dividing it by the earned premium over the past 5 years. So if you had one claim for $50,000 and have paid $100,000. The loss ratio is 50%.

Hull Value

Aircraft insurance policies are written as a “Agreed Value” basis, meaning the insurance company will reimburse the insured not for the Bluebook value like the auto industry, but the Agreed Value the insured and insurance company agree its value is. We recommend using a close approximation to bluebook plus 10% of additional expenses to acquire a replacement. The higher the hull value the closer underwriters will look to protect their investment. It’s normal to see a new Cirrus SR22’s value at $1,200,000. Or a Diamond DA62 at $1,700,000. Or a Pilatus PC-24 at $14,000,000.

Most aviation insurance companies will have a cap on the highest hull value they can insure 100% for single pilot operations. This applies whether is Pro Pilots or Owner Pilots. As of recently, this number is at a $6,000,000 hull value. Anything over $6,000,000 will have to be “Quota Share,” meaning one insurance companies leads with a 50% share and another insurance company follows with a 50% share for a total of 100%.

Some common aircraft to see Quota Share are: high hull value single pilot operated aircraft such as a Bell 429, Airbus H145, Honda Jet, Pilatus PC-24, Phenom 300, and Citation CJ4.

Already have owner aircraft insurance?

Only a handful aviation insurance companies offer competitive terms for owner flown aircraft. Therefore, each insurance company will only quote one broker. So often times trying to get multiple aviation insurance brokers involved can be overly redundant and tricky.

Questions to ask your current carrier:

  1. How can I estimate what competitive owner aircraft insurance rates?

  2. What aircraft insurance coverage do I need?

  3. What does Pleasure & Business mean?

  4. How much liability insurance do I need?

  5. Is it worth it to work with an aviation insurance specialists?

  6. How can I save money on my annual premium?

Find out what we can do for you

Our Partners

Aircraft We Cover

Airbus

Airbus

Avanti EVO

Avanti EVO

Beechcraft

Beechcraft

Bell

Bell

Bombardier Challenger

Bombardier Challenger

Bombardier Global

Bombardier Global

Cessna Caravan

Cessna Caravan

Cessna Citation

Cessna Citation

Cessna Conquest

Cessna Conquest

Cirrus

Cirrus

Daher

Daher

Dassault Falcon

Dassault Falcon

De Havilland Canada

De Havilland Canada

Diamond

Diamond

Embraer

Embraer

Embraer Phenom

Embraer Phenom

Epic

Epic

Extra

Extra

Gulfstream

Gulfstream

Hawker

Hawker

Honda Jet

Honda Jet

Learjet

Learjet

Leonardo

Leonardo

McDonnell Douglas

McDonnell Douglas

Pilatus

Pilatus

Piper

Piper

Piper Cheyenne

Piper Cheyenne

Robinson

Robinson

Sikorsky

Sikorsky