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getting insured in the aircraft initially. But if you have the ability to add a tailwheel endorsement, MEL rating or perhaps seaplane rating those areas can and do help with how the underwriter views your risk. The commercial license can also
add some benefit although insurers will stop short of quantifying
what the policy level impact will
be. As you know the commercial license requires flying to tighter tolerances so this translates into
you being viewed as more dedicated to the craft. Certainly operating
a pressurized/turbine aircraft in
the flight levels demands a skillset, which if it can be broadened via an advanced license will help you in
the insurance market when it comes time for renewal.
3. Training and proficiency. Do an annual Instrument Proficiency Check, attend a MMOPA event, or other safety-related event. Make sure your broker is aware of this additional training as it might
help when your policy comes up
for renewal. The brokers role is to “sell” all the work you are putting into operating your aircraft safely
– that work includes the annual policy required formal training but also anything you are completing additional to those basis policy requirements. Your additional effort in staying proficient in the aircraft whether that be through an IPC or an upset recovery course should
be highlighted by your broker when your risk is presented to the underwriting carriers.
4. Review your coverages. The largest component of your annual insurance premium is hull insurance or the physical damage aspect of your coverage. To that end, keep your aircraft insured for its current market value each year. After all the bulk of annual premium is hull insurance
so the hull insured value should be an area you scrutinize upon renewal. All aircraft generally depreciate to some extent over the prior year and in some cases depending on the
resale market conditions (inventory levels, pedigree of your PA46) your aircraft may remain stagnant or in some cases increase in value form the prior year. If you are over-insuring
or your insured hull value is above market value, you’re paying for more insurance than you need along with other drawbacks related to claims adjustment. Lastly, review your liability coverages with your broker. A good number of insurers in the PA46 space will not quote higher than $2 million limits for
an owner-flown aircraft (when operated single-pilot). Yes, there are
a few carriers that can/will offer a
$5 million limit in the current space but if you currently have a $5 million limit policy be advised you are going to have very few options for coverage given the majority of the insurers won’t bid the policy being capped
at $2 million offering. Review your passenger exposure and overall limits being appropriate for your how you operate and make a good decision
on what you should carry based on availability in the market and what the insurers will offer as a maximum limit on your PA46.
5. Be represented by a reputable PA46 and M-Class insurance broker. Unlike other lines of insurance (home, car, health, etc.), you can’t really “shop” for insurance in aviation. That’s your broker’s job, and you should allow them the full market to work with. Make sure that the broker you chose to work with is contracted with 100 percent of the underwriters, knows what markets are competitive for your class of PA46 aircraft, and knows how to present you to those markets. I would take the time to interview your broker briefly on their involvement with the PA46 class. If the broker
you are working with doesn’t know the difference between a PA46 and a PA12 then you are likely working with the wrong broker. A good PA46 broker should also be active in your OPA organization (MMOPA) and be connected to the training
community and other ancillary service providers in the space. Working with a non-aviation broker is potentially going to limit your underwriting options, and worse case not have your risk shown in its best light to the viable PA46 insurers when it comes time for renewal.
Final Thoughts
Every policy is unique and what helps one client might not help another – aviation insurance is not one size
fits all. Right now, it’s a good time to have a conversation with your broker about your goals and any upcoming changes. Talk about any unique trips you’re planning that may require some creative coverage solutions (an EU
trip for instance or planned Atlantic crossing). Discuss potential needs for higher liability limits or acceptance
of a lower limit policy based on your exposure. Share if you’re thinking about getting a new rating, license or completing upset training or other proficiency based training events.
The more your broker knows about you, the better guidance you’ll get
and the more they can sell you to the insurance companies. I always say
that the more tools your broker has in their toolbox when going to the market the better chance of their success in securing you the sharpest premium and the broadest coverages available.
The current aviation insurance market conditions admittedly aren’t great but it’s important to remember that insurance is cyclical. Pricing will get better going forward! Until it does use the tips mentioned
above to make sure you get the
most bang for your buck with your insurance dollar.
42 MMOPA MAGAZINE MAY / JUNE 2021
Tom Hauge is national sales di- rector for Wings Insurance located at the Flying Cloud Airport in Eden Prairie, MN. Tom holds an aero- nautical studies degree from the University of North Dakota and is an active commercial, multi-en- gine-rated pilot.