Category Archives: aircraft insurance

Proficiency training Simulator or aircraft?

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The following question from a customer asked about doing regular training.  Its important to note that sometimes insurance companies require training in a specific class or category of aircraft.  For example; if you fly a pressurized or cabin class aircraft, you will probably be required to get “factory approved”  initial ground and flight training along with recurrent training after that. Most companies require recurrent every year but there are a few that will go for two or three years between the training. A lot depends on the type of aircraft you are flying.   
That said —- 
Q. Proficiency.  I’m thinking of going to a school such as RTC, Flight Safety etc.  Most of these companies do simulator training.  Am I better off going out with an instructor, doing the FAA Wings kind of thing, or going to a school?  Training in the airplane will give me some dual, my Instrument Proficiency Check (IPC) and my flight review?  Which is a better way to go?

A. That’s a tough one.  From an insurance standpoint, many of the underwriters require training from a factory approved school that specializes in your specific aircraft.  That training is often in a simulator and counts as your IPC, flight review and dual.  That is if it’s from an approved school or training institution. 

I’m a big believer in the FAA Wings programs and flight simulators to keep a pilot proficient.  If the weather is really bad or your checkbook is a little empty, flying with a Flight Simulator program on your home computer can be a great help.  While it might not be logging “real” hours, it can sure help keep your mind in the flying mood.  The Flight Sim program can overlay weather, set up approaches and do almost everything a pilot need s to do to feel comfortable in their aircraft.  Flying to a new destination?  Set up the Flight Sim program to fly into the area, make a few approaches and you’ll feel like you been there before when you get there for the first time.

Whenever possible take advantage of flying the real thing and practice.   Sure I like simulators and software, but I think the real proficiency comes from flying the aircraft.  That’s why we buy an aircraft to begin with.  Hook up with a qualified instructor that you like and go out and have fun and learn at the same time.  

Question about tail-wheel aircraft with wrinkles!

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The question from a reader customer was – “I’m looking at a tail wheel aircraft that has wrinkles or dents around where main landing gear legs go into the fuselage. There is nothing in the logbooks about repairs, has this aircraft been wrecked?”
My thoughts are that wrinkles do not mean wrecked. But they do typically indicate previous damage or stress. I’d guess the aircraft has had a few hard landings or even a few ground loops. Make sure the mechanic looks for a Form 337, Major Alteration and Repair in the aircraft records. You can also order (through the FAA or other search companies) a copy of the FAA 337 Forms for a specific “N” number  aircraft.  This report will show you any Form 337’s that have been filed with the FAA on that particular aircraft.  If that doesn’t show any damage all you have is visual information.
Whatever the result, the mechanic should inspect the gear attach points for un-repaired damage.   Landing gear on any aircraft gets a lot of stress.   Custom built aircraft are notorious for landing gear damage, along with training aircraft.  It doesn’t matter if it is a conventional gear (tail wheel) aircraft or a tri-gear aircraft.  New pilots have a tendency to make hard landings and newly completed custom aircraft take a while to become accustom to.   Don’t be surprised, just make sure the aircraft is inspected carefully.  


Do you need commercial drone insurance?

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Depends on what you are doing with the drone, your appetite for risk and how deep your financial pockets are. There is an anonymous saying I like “flying is not inherently dangerous, but crashing is”. If you have a risk of crashing you might have a need for insurance.
Risk can be handled in a number of ways. You can take the risk on yourself (self-insure), you can stay away from risk (don’t fly), reduce the risk (better training, safety systems, only fly on calm days) and you can transfer the risk to someone else.
Insurance is basically transference of risk. You are transferring the risk of your drone to the insurance company for a fixed smaller amount of premium. They hope you will not crash and they not have to pay a claim. But for that privilege they have requirements that you are to follow.
eagledroneWhen do you need to consider buying insurance for your drone?
Are you flying as a hobby or recreational use?
If you are flying your drone as a hobby or recreation and you are not operating in the commercial drone category, most likely your homeowners (if you have one) policy will cover the liability insurance. Homeowners might even cover the drone for theft or other losses other than crashing. You would be subject to the homeowner policy deductibles. I don’t sell typical homeowners so I can’t tell you the details, but make sure you contact your homeowner’s insurance company and ask to know for sure.
Are you flying for hire?
Commercial drone insurance is usually considered aviation insurance.
Reason I am saying aviation is because once you decide to make the transition to commercial operations, the homeowner insurance companies really do not want the risk. Aviation insurance companies already understand aircraft risk so the transition to drones is actually a little bit easier. In fact, many of the aviation insurance companies have been providing drone coverage for years but on a bigger scale. Just in the past couple of years did they start ripening their “doors” to smaller more general aviation drone operators.
Commercial drone insurance coverage
1. Liability
2. Drone hull coverage
3. Extra scheduled equipment
Typically, liability coverage in an aviation insurance policy will be for property damage and bodily injury. You need to know the basic insurance definitions to understand the coverage. The following definitions were taken from various policies and simplified as best as possible.
“Property damage” means any physical damage to “tangible” property. This coverage does not cover the aircraft itself, any of your own property or property that you are in charge of. This is just for the property belonging to others that was damaged by the accident. This damage might include the loss of use of the property. Example; houses, automobile, crops etc.
“Bodily injury” liability means the physical (bodily) injury to or the death of a person.
What does aircraft liability insurance protect you from? If you have an accident in your aircraft, the liability coverage will protect you from lawsuits from people who are injured, any of the heirs from anyone that is killed in the accident AND from anyone that has property destroyed or damaged.
But it is important to remember that the commercial drone insurance policy limit is typically the maximum the insurance company is responsible for (payments and legal defense).
Hull coverage is the protection you are buying for the actual cost of the drone and equipment attached to the drone. Aviation insurance is generally an “agreed value” policy. That means if you have a total loss, the claims department will pay the stated value of the “drone” on the policy (minus your deductible). This is different from your auto insurance. As an owner it is your decision to value the drone at a reasonable level. Most underwriters will allow you to pick the value based on the type of drone and equipment and the age. Or they may request that you provide proof of the value (receipts etc).
That’s the basics of the type of coverage that are available for commercial drone insurance. For more information or with any questions, contact me, Scott Sky Smith “Name on the door”.