Aircraft Renter's Insurance

FAA Part 141/VA Flight Training School – Renter’s Insurance

Aviation accidents aren’t common, but when they do happen they are usually quite expensive. What’s worse is most regular business insurance or personal insurance coverage’s won’t protect you for this occurrence. Aircraft non-ownership liability and non-ownership physical damage protection can be provided under a renter’s insurance policy.

The liability portion is protection for lawsuits arising from use of a non-owned aircraft as described in the policy usually by engine(s), seating, horsepower, and/or type of use limitations. This protection is for any bodily injury or property damage that is caused by your negligence. Bodily injury is sometimes further divided into persons outside the aircraft or persons being carried as passengers. The physical damage portion is protection for damage to an aircraft, which you have rented or borrowed. This is purchased in specified amounts of value, such as $1000, $5000, $25000, etc.

Although most fixed base operators carry insurance on their aircraft, their policies are usually not designed to respond adequately for the interest of the renter pilot. A personal aircraft policy may have specific ‘warranties’ or requirements for permissive users, or it may even be based on a named-pilot only warranty. Even if a pilot meets the requirements stipulated in a policy, the owner’s insurance company may pay for damage to the aircraft, then seek to recover their damages from a negligent party.

For a renter pilot to best protect their interests, a non-owned aircraft liability and hull policy is the most suitable method.

To give you an idea of the cost involved to purchase the coverage’s described above an indication of premiums is outlined below:

Coverage’s:

Liability Coverage

Pays for bodily injury and property damage for which you are legally liable arising out of your use of non-owned aircraft, but excluding physical damage to non-owned aircraft.

Renters:

Each Occurrence Passengers Premium
$250,000 $25,000 $125.00
$500,000 $50,000 $160.00
$500,000 $100,000  $230.00
$1,000,000 $100,000 $325.00
 Add employer as an Additional Insured:  $50.00

Flight Instructors
(Including Comprehensive CF) Liability Coverage

Each Occurrence Passengers Premium
$250,000 $25,000 $200.00
$500,000 $50,000 $350.00
$500,000 $100,000 $500.00
$1,000,000 $100,000 $650.00
 Add employer as an Additional Insured:  $50.00

Physical Damage to Your Non-Owned Aircraft

Pays for physical damage to non-owned aircraft for which you are legally liable.

Physical Damage Limit Premium
5,000 $125.00
10,000 $175.00
20,000 $250.00
40,000 $450.00
60,000 $600.00
80,000 $775.00
100,000 $975.00
150,000 $1,425.00
This coverage is available only in conjunction with Liability Coverage.

*Your employer may require this coverage if you use non-owned aircraft on company business. This coverage is not available to Student or Recreational pilots. Coverage does not apply to employers who are: involved in the manufacture, building, designing, selling, or distribution of aircraft, aircraft engines, parts, accessories, components, or fuel; engaged in the operation of a aircraft repair shop, sales agency, rental service, flight school, pilot training center or any other commercial flying service.

Information Supplied By:

Sargent, Tyler & West
Aviation Insurance Specialists

800-244-1515