Certificate of Insurance: A document proving the Named Insured has insurance coverage. It is usually to a Certificate Holder (Lender, Landlord, Charter Client, etc.) and often will involve the following:
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- Additional Insured - a person or persons other than the original named insured, who are protected under the terms of a policy.
- Waiver of Subrogation -
Subrogation is a doctrine that gives an insurance company the right to attempt to recoup some or all of the money they have paid on behalf of insureds. They do this by proving that another party was legally responsible for the loss and that the party has the financial ability to reimburse the insurance company. If a Waiver of Subrogation is requested by the Certificate Holder and granted by the insurance company, the insurance company waives its rights outlined above.
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Add a Pilot: Any pilot flying the aircraft should be added to the Policy as a Named Pilot unless they meet the Open Pilot Warranty and use is very minimal (1 to 4 flight hours).
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- Open Pilot Warranty - a clause in the policy that will state the minimum qualifications for a pilot to meet who has not been previously listed by name on the policy as a pilot. A pilot who is named on the policy or who "meets the open" simply affirms to the named insured that the pilot's legal and proper use of the aircraft will not void the named insured's coverage. It does not necessarily mean that the named pilot will be covered under the liability protection of the policy.
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Aircraft:
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- Aircraft Liability Insurance - protects insureds from claims by other parties ("third parties") for bodily injury or death and property damage. The claim has to result from an occurrence related to the operation of the aircraft.
- Hull Insurance - coverage for physical damage done to the aircraft. It is not liability coverage and is therefore triggered by a covered event, regardless of the reason for the damage or loss.
- Named Insured - the actual policyholder who is specifically named on the policy. Named insureds are responsible for premium payment, have the authority to cancel or make changes to a policy, will have a say in the claims process, and are included on any claim checks that are issued.
- Medical Payments - coverage that pays medical, surgical, hospital and funeral expenses up to the applicable limit, regardless of the liability of the insured.
- Guest Voluntary Settlement - also known as admitted liability, provides coverage to a passenger who suffers certain forms of bodily injury whereby a settlement is offered on a predetermined basis in exchange for a release of liability.
- Pleasure & Business - refers to aircraft that are owned and/or operated by pilots who are not employed as full-time professional pilots.
- Industrial Aid - refers to corporate-owned aircraft that are used for the transportation of executives, employees, customers and guests, and which are flown by full-time professional pilots.
- Open Pilot Warranty - a clause in the policy that will state the minimum qualifications for a pilot to meet who has not been previously listed by name on the policy as a pilot. A pilot who is named on the policy or who "meets the open" simply affirms to the named insured that the pilot's legal and proper use of the aircraft will not void the named insured's coverage. It does not necessarily mean that the named pilot will be covered under the liability protection of the policy.
- Smooth Limit - a limit of liability that offers a combined single limit of coverage that applies to all bodily injury and property damage claims. A specified maximum amount can be paid out from a covered occurrence in any combination - passenger bodily injury, other person's bodily injury or property damage.
- Sub-Limit - usually a combined single limit of coverage that applies to all bodily injury and property damage claims, however, a reduced amount of coverage from the single limit is available to pay for claims resulting from bodily injury.
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Workers’ Compensation: Insurance that pays for medical care and physical rehabilitation of injured workers and helps to replace lost wages while they are unable to work. State laws, which vary significantly, govern the amount of benefits paid and other compensation provisions.
Premises Liability: Insurance for what the policyholder is legally obligated to pay because of bodily injury or property damage caused to another person.
Property (Hangar/Contents): Covers damage to or loss of policyholders’ property and legal liability for damages caused to other people or their property.
Manufactured Products/Completed Operations:
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- Product Liability: A section of tort law that determines who may sue and who may be sued for damages when a defective product injures someone. No uniform federal laws guide manufacturer’s liability, but under strict liability, the injured party can hold the manufacturer responsible for damages without the need to prove negligence or fault.
- Product Liability Insurance: Protects manufacturers’ and distributors’ exposure to lawsuits by people who have sustained bodily injury or property damage through the use of the product.
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Custom’s Bonds: A security that obligates the issuer to pay interest at specified intervals and to repay the principal amount of the loan at maturity. In insurance, a form of suretyship. Bonds of various types guarantee a payment or a reimbursement for financial losses resulting from dishonesty, failure to perform and other acts.
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