Aircraft dealers typically specialize in selling single and multi-engine aircraft.
Any aircraft dealer faces numerous risks, from property losses to injuries and the damage that they cause to customers and the general public.
Aircraft dealers should work with an independent insurance agent who has experience tailoring business insurance packages to the needs of aircraft dealers and other aviation companies. An independent insurance agent can work with multiple insurance companies and find the best mix of coverage to protect you if something goes wrong.
Special Coverage for Aircraft Dealers
Aircraft dealers need very specialized insurance coverage. Most aircraft dealers need to purchase a comprehensive package of aviation insurance in order to protect their assets and pay for property losses and lawsuits. It’s best to work with an independent insurance agent who has experience working with aviation-related businesses.
Your policies should be tailored to how an aircraft dealer stores, uses, and sells aircraft and the specific risks involved with these activities. Your aircraft dealer insurance package will likely include a combination of the following types of coverage:
- In-flight insurance: Covers a plane for damages sustained while the plane is in motion.
- Non-motion hull insurance: Covers a plane for damages sustained while it is on the ground but not in motion. This would include damages from crime, natural disasters, animals, and uninsured aircraft occurring when the plane is grounded.
- Motion hull insurance: Covers damages sustained while a plane is on the ground and in motion. This typically includes damages sustained during takeoff and taxi.
- General liability insurance: Covers damages that occur to third-party entities and your property (third party injuries and property damage). This does not pay for damage done to a plane or to passengers in the plane.
- Passenger liability insurance: Covers any passengers riding in the plane while the policyholder is operating it. It pays for injuries and final expenses in the event of a fatality.
- Combined single limit coverage: A bundled policy that combines general liability and passenger liability insurance.
Other Aircraft Dealer Insurance Policies
Aircraft dealers may also need some additional types of aviation insurance, depending on your specific operations, products, and services offered. Your independent insurance agent may recommend:
- Worker's compensation insurance: Covers medical expenses and lost wages for employees who are injured on the job.
- Product liability insurance: Covers expenses related to lawsuits and other claims related to faulty products. It is applicable if your company manufactures or sells a product that has a defect and that defect causes injury or property damage.
- Hanger keepers liability insurance: Provides coverage for damage to or destruction of the aircraft of others while in your care, custody, or control (e.g., airplanes in your hangar for storage, repair, or for purposes of trade or sales).
- Grounding coverage: Coverage is provided for claims arising out of the loss of use of aircraft following an accident that forces the grounding of all other aircraft of that type pending investigation, repair, or modification.
- Commercial property insurance: Protects your hangar, warehouse, office, or other commercial space from losses caused by fire, severe weather, smoke, or other covered perils.
- Premises liability insurance: Provides protection in the event of bodily injury or property damage on your premises. If, for example, someone falls on a wet floor, this coverage would pay for medical expenses and any expenses that result from a related lawsuit.
What Does Aircraft Dealer Insurance Cost?
Aircraft dealers need a customized mix of property and liability insurance to ensure that there are no gaps in coverage. The cost to cover your aircraft dealership with a comprehensive business insurance program will vary depending on:
- The size of your business
- Your location
- The number of employees you have
- The products and services you provide (do you sell only new aircraft, or do you sell and service used aircraft)
- The value of your commercial property, including your building (if you own it) and all of its contents
- The value of your aircraft inventory
- The types of coverage and the coverage limits that you require
- The crime and weather risk in your city
Find and Compare Quotes
An independent insurance agent can work with you one-on-one to determine the types and amounts of coverage you need. Your agent can get quotes from multiple insurance companies so you can evaluate the cost and coverage options and make the best choice.
Benefits of an Independent Agent
Our agents simplify the search process for finding the right aircraft dealer insurance. They’ll walk you through the handpicked policy options and explain the details.
Most importantly, they’ll be there for you when claim time comes. They know the ins and outs of the process and will make sure your claim is handled appropriately.
The Lowdown on Online Quotes
Online quotes can be tempting. They are fast and easy to get—but are they accurate? And are you getting quotes for the right coverage? For business owners, choosing speed over accuracy can cost you.
Online quotes can’t and don’t take into account the whole picture. They can omit important coverage that will leave you devastated if something unexpected happens. And they can leave out cost savings opportunities that an agent can help you take advantage of.
Instead of getting an online quote, find an independent insurance agent now, and get one-on-one consultation and affordable options for the best coverage for your unique needs.
TrustedChoice.com Article | Reviewed by Paul Martin
©2021, Consumer Agent Portal, LLC. All rights reserved.