Flying clubs can be an excellent way to save on aircraft ownership costs, but they can also be expensive to insure. It is not uncommon for a club to have both seasoned and student pilots. Some clubs have one aircraft, whereas others have several. You can easily see how these factors would impact insurance premiums.
However, being part of a well-run flying club can help pilots of every experience level get plenty of flight time by sharing costs with other members. A Flying Club can also provide members other benefits, including mentoring and training which can help make club members better pilots and less of an insurance risk.
Here are some things to know about Flying Club insurance, whether you’re considering starting a club or taking over managing a club. Either way, you want to ensure your club has the right insurance coverage to protect your members and aircraft.
What Is Flying Club Insurance?
Flying Club insurance is not much different than any aviation insurance. Flying Club policies are explicitly designed to provide liability protection for flying clubs and their members in case of injury or property damage to a third party and protection against loss for damage to club aircraft. Premiums are based on the experience of all pilot club members, the type of aircraft owned by the club, and other factors.
What Does Flying Club Insurance Cover?
These are the types of aircraft coverage available to Flying Clubs.
Hull Coverage
Hull insurance covers loss and physical damage to the club’s aircraft. It only covers up to the agreed value of the insured aircraft. Typical hull coverage includes:
- Full-Flight-Hull
- Ground In-Motion (aircraft moving under its own power)
- Ground Not-In-Motion (aircraft not moving under its own power)
Liability Coverage
Liability coverage protects the club and its members from lawsuits that can arise when operation of aircraft causes bodily injury or property damage to a third party. This protection can also cover legal costs associated with a lawsuit. Liability insurance does not cover injuries to club members.
Cross-Liability Coverage
Cross-liability coverage is an optional policy that covers club members when they are involved in an accident or incident that is the result of the actions of a fellow club member. This coverage is only available under some policies.
Factors That Can Affect a Flying Club’s Insurance Rates
An insurance company will consider several factors when determining your Flying Club insurance rates, including:
- Your required insurance coverage limits
- Number of members per club aircraft
- The type of aircraft your club has
- The type of pilot certificates held by club members
- Experience each club member has in the type of aircraft the club has
- The location where your aircraft is stored
Tips for Saving on Flying Club Insurance
Just as with any type of insurance, there are steps your club can take to help keep insurance premiums as low as possible. The more attractive your club and its members are to an insurance underwriter, the more money your club will save. Just ensure your club always carries enough coverage to protect your club’s aircraft and its members and that club members are aware of what is and is not covered. Here are some tips that can help you save on Flying Club insurance:
- Be mindful of the type of aircraft your club owns. Some aircraft are much cheaper than others to insure.
- Keep tabs on your club’s pilot-to-aircraft ratio. A good ratio for insurance is a maximum of 10 members per aircraft.
- Keep your pilot roster up to date. Be sure to remove ex-members from your roster and do not include non-flying members on your roster.
- Consider the age of your pilots. Club members younger than 70 are typically less expensive to insure.
- Maintain club by-laws. Make sure members are aware of all by-law expectations and requirements.
- Make sure members are aware of any training requirements. Member training can help lower your premiums and possibly earn discounts on your club insurance.
- Promote a culture of safety. The fewer insurance claims your club has, the less you’ll pay for insurance. Make sure club safety and security procedures are well-documented.
- Share equity among members. Clubs in which members share ownership of the club’s aircraft often get better insurance rates since insurers feel a member will likely use more caution with an aircraft they own.
As you can see, your club has some control over many of the variables that determine your insurance premiums, including the type of aircraft operated by the club, the number of members and the members’ flight experience. Clubs that allow student pilots or aerobatics will have higher premiums than clubs that don’t. Your club should consider insurance costs when making changes to club by-laws, aircraft ownership or membership requirements.
Getting A Flying Club Insurance Quote
Here is some of the information you might need to get a flying club insurance quote from a broker:
- Flying club management information
- A roster of all club pilot information: pilot names, ages, license/ratings, total hours, hours in aircraft that the club owns, hours in the previous year
- A roster of all club aircraft information: N number, make, model, year, hull value, annual hours flown
- Liability coverage limits
- Flying club operations information: by-laws, certifications for instruction, maintenance information, etc.
- Flight school safety/training initiatives and risk management
Make Sure Your Flying Club Is Adequately Covered
Whether starting a flying club or simply taking over the management of an existing club, if you’re responsible for ensuring the club is adequately insured, you need a trusted broker to assess your club’s needs and make coverage recommendations.
Since club membership will change yearly, insurance needs may also change. Your broker can inform you how often club information and changes need to be provided to your insurer.
BWI offers comprehensive Flying Club insurance policies backed by A+ rated aviation insurance companies. Coverages include liability and physical damage coverage and may include cross-liability coverage. All policies are designed to protect your flying club, your members and the aircraft owned by the club. Contact us today for a quote.
Why choose BWI Aviation Insurance?
Over our 42 year history, BWI has built longstanding relationships with all of the above Aviation Insurance Companies. We work hand in hand with the above companies and leverage our experience to find the best market for your particular airplane insurance risk.
To ensure that you are getting the absolute lowest rate and best coverage with a rock solid A+ rated Aviation Insurance company, get a quote with BWI today. We specialize only in Airplane Insurance and our office is open 12 hours a day. Our agents are friendly and knowledgeable, and most importantly they are agents that you can trust to get you the best coverage for your needs. Aviation Insurance is all that we do and have done for 42 years.
Call 800.666.4359 today for a free Airplane Insurance Quote or Click Here to submit a quote request online.
BWI is the Nation’s Leader in Aviation Insurance, with offices based in Corona, CA and Anchorage, AK
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