Tom Hauge

Should you worry about your aircraft insurance renewal that's due within 30 days? The short answer is: No. 

The aviation insurance underwriting community is very small by comparison to the overall insurance market for other property and casualty type risks. There are only about 20-22 aviation insurance underwriting companies here in the U.S. that cover aircraft hull and liability policies. 

Of those 20-22 markets, only a faction of those are viable for mid and large cabin aircraft–typically 8-9 in total. If you pare things down to light piston aircraft, there are about 10 markets that underwrite light piston policies. So depending on what you operate the amount of viable insurers is a smaller subset of those 20-22 total insurers. 

The aviation insurance market is for the most part “captive.” This means the majority of the aviation insurers in the turbine space only accept a submission from one broker and it’s “first-come, first-served”. 

For example, you can’t own a Challenger 350 and call five insurance brokers expecting you’re going to get all of them to quote the policy. The underwriters in this class work as noted on a first-come, first-served basis. Thus, the first broker that approaches them on a specific policy is the broker of record who will receive their quote. That is, if they’re indeed interested in quoting you. 

Insurers generally don’t quote policies 45-60 days out from the expiry date. Typically the broker gets traction with interested underwriting carriers inside of 45 days and in most cases inside of 30 days. 

As such, if your insurance broker is being completely thorough in the market, you should receive your renewal proposal within 2-3 weeks of the policy expiration date. Thoroughness is what you should expect in your broker, but also transparency. Your broker should outline the underwriting markets that they shopped your policy to, and which replied/declined or quoted the risk. 

Lastly, do not expect to receive quotes from every insurance carrier as insurers won’t “quote just to quote” each year. If an insurer has quoted your business in prior year(s), and didn’t obtain the business, they may not offer terms the subsequent year on your policy. Your specific risk may not perfectly fit in the insurer's underwriting box based on the underwriting metrics associated. This depends on limits carried, insured value, single-pilot operations, dry leases, etc. 

At the end of the day, you should receive your renewal package from your broker about 2-3 weeks prior to your policy’s expiry. That window will allow plenty of time for you to review the options in the market, ask questions and secure any revisions needed to the formal insurance proposal. 

Binding a policy takes a broker mere minutes so once you give your insurance broker the “ok” you’ll promptly have an insurance binder evidencing your coverage for the coming year’s policy.

Most U.S. aviation insurance policies for turbine and pressurized aircraft require initial or recurrent training for flight crews. In the case of mid-size and large cabin business jets, these requirements are typically straightforward, especially for the PIC and SIC. And, in almost all cases, insurers require completion of formal initial or recurrent training in a full-motion simulator—most commonly conducted by CAE or FlightSafety International.While some insurers allow workarounds for mid-size and large cabin aircraft, they typically apply to the SIC, not the PIC.

For example, accommodations for the SIC may allow them to meet only FAR Part 61.55 qualifications. However, it’s important to understand that FAA regulations and insurance requirements are entirely separate. What is considered "legal" under the FARs may not necessarily meet an insurer’s training requirements for coverage. Always consult with your insurance broker to confirm your planned training is going to be compliant with your insurance policy requirements.

Pilot Training Requirements for Light Aircraft

On the flip side, pilot training requirements for light jets and turbo-props can be less clear-cut. Insurance policies often state that pilots must complete initial or recurrent training with a provider approved by the insurer.

That said, not all training providers are accepted by every underwriting carrier. Currently, more than 20 insurers issue aviation policies in the U.S., each with its own approval criteria.

If you operate a King Air, Pilatus, or light Citation aircraft, always consult your broker before scheduling an in-aircraft training event. This is especially important if you plan to train outside of a simulator-based program.

Not all insurers allow in-aircraft training, as approval depends on several factors. These include pilot experience, the aircraft’s insured value and the liability limits on the policy.

In many cases, insurers may permit in-aircraft training on an alternating-year basis. Some may allow it every year, but this varies by policy and specific underwriting criteria.

Keep in Mind

Aviation insurance policies are not one-size-fits-all, and no two are exactly alike. Always check with your broker before completing policy-required training to ensure compliance with your coverage and pilot warranties.

As insurance brokers, we’re often asked the question: ‘What’s an open pilot clause?” In short, it’s a provision found in most aircraft insurance policies which allows other pilots to operate the aircraft if they meet a minimum level of experience/qualifications. So the aircraft can be flown by a pilot meeting the open pilot provisions without providing formal notice to the insurance policy’s underwriter. 

While not all aircraft insurance policies have open pilot provisions, the vast majority do. Especially in the general aviation class. 

Some policies are written on a “named pilots only” basis, where the insurer limits its exposure to pilots formally listed or named on the policy. These policies do not include open pilot provisions.

A named pilots-only policy doesn’t necessarily mean there is no ability to add or qualify additional pilots. It requires the policyholder (usually the aircraft owner) to formally submit pilot experience forms for any pilots they want approved. From the insurer's perspective, being approved to operate an aircraft either requires being a named pilot or meeting the open pilot requirements.

A policy with open pilot provisions allows a pilot, who may be unknown to the insurance company, to operate the aircraft on behalf of the owner or named insured. This is done without compromising the coverages provided by the policy. 

A common misconception is that a pilot who meets the open pilot requirements is “covered” to operate the aircraft. That statement is only partially correct. A pilot flying under an open pilot clause ensures that the coverage provided to the aircraft owner remains in full force should there be a loss. However, there’s no direct coverage afforded to the pilot if they’re personally liable for a loss (incident or accident). For a non-owner pilot to have coverage in their favor, they must either possess a non-owned policy (think renters insurance) or be listed on the policy as an additional insured party.

We do encourage non-owner pilots, who regularly operate an aircraft, to ensure that they’re listed as a “named pilot.” A named pilot is known to the insurance company and listed within the policy pending submittal and acceptance of their pilot experience form. The owner(s) of the aircraft, and anyone frequently operating the aircraft, should be listed as named pilots. 

I like to think of the open pilot clause as an after hours, weekend or one-time type provision. It allows pilots to fly an aircraft when the insurer may be unavailable to vet the pilot, or when the situation warrants a one-time flight (e.g., repositioning flight). 

For pilots who don’t own the aircraft, whether in whole or in part, do your due diligence. Request to be listed as an additional insured if you expect to have insurance coverage in your favor should there be a loss, incident, or accident. After all, being a named pilot doesn’t automatically extend insurance coverage to a non-owner pilot. To have coverage, you must also be listed as an additional insured on the policy.

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Thinking about entering into an aircraft lease agreement? You’re not alone—many aircraft owners wonder, "Can I lease my aircraft to others or third parties?" The answer is yes!

But, like any important decision, it comes with responsibilities. Specific insurance policy terms and exclusions need attention when setting up a Part 91 lease agreement.

Contact an Aviation Attorney

Before you proceed, consult an aviation-specific attorney. They can draft a formal dry lease agreement tailored to your specific needs. Aviation-specific law firms understand both insurance contracts and the Federal Aviation Regulations (FARs), ensuring full compliance with legal and insurance requirements.

Be sure to designate pilot services separately from the aircraft lease itself. These agreements must be structured correctly to comply with Part 91 regulations, keeping the operations fully legal and insured properly.

Involving Your Insurance Broker

After your attorney prepares the dry lease agreement, submit it to your insurance broker. They will then send it to the underwriter for review. Of note, not all carriers permit dry leasing, so informing your broker early helps avoid policy restrictions or potentially the inability for your insurer to allow adding a dry lease.

Underwriting and Policy Costs

Most insurers allow dry leases but may limit the number of lessees that can be added. All dry leases, when approved by the insurer, will be subject to flat fees, typically ranging from $1K-$5K per lease. Some adjust costs based on the flight hours planned by the lessee.

Liability & Coverage Considerations

Once approved, the lessee is added as an additional insured on the policy. Lessees may also consider excess liability policies for additional coverages over and above the lessor’s policy limits. Keep in mind, these can be costly and difficult to obtain.

Aircraft Lease Agreements: Protecting All Parties

Liability limits are shared between the lessor and lessee. Work with your insurance broker to ensure adequate coverage. The lessee should receive a certificate of insurance confirming additional insured status and relevant policy terms.

Conclusion

Entering an aircraft lease agreement requires careful planning, legal compliance and insurance coordination. Partnering with experienced aviation attorneys and insurance brokers can simplify the process and help secure the best terms.

Each year, we see the highest volume of aircraft insurance transactions during the fourth quarter compared to any other time throughout the year. This is especially true as buyers rush to finalize transactions before December 31st.

Some buyers are motivated by tax planning strategies, while others make purchase decisions based on factors like election outcomes—yes, that really happens!

Regardless of the reason, the timing places added pressure on buyers to finalize both acquisitions and the necessary insurance policy and other ancillary services required (e.g., escrow, legal, finance and tax).

However, rushing through the process of obtaining aviation insurance coverage can lead to challenges. Binding a policy last-minute isn’t ideal, especially when it’s treated as just another item to check off an acquisition checklist.

Avoid Last-Minute Scrambling

Just as banks prefer at least 30 days' notice for processing financing, aircraft insurance brokers benefit from that same level of lead time to secure optimal coverage and pricing.

While it is possible to secure an insurance quote in under a week, rushing the process often leads to suboptimal results. This applies to both insurance policies and loan documentation. A hurried approach can leave both buyers and insurance brokers with fewer options, potentially resulting in higher premiums or less comprehensive coverage.

We generally recommend allowing at least two weeks from the time of initial contact with your insurance broker to the point of quoting and binding coverage. This window allows your broker to gather essential details, such as pilot information and applications, while fully understanding your risk profile.

The process of shopping for aircraft insurance is not instantaneous. In today’s market, it can take three to five business days for underwriters to respond with their interest in quoting a specific policy. During this time, your broker evaluates multiple offers, comparing coverage, limits and premiums to recommend the most favorable option.

Shortening this timeline may compromise your insurance coverage, as rushing the process leaves little room to explore the best market options. If some underwriters have not yet provided formal replies, there’s a risk that a more suitable policy could be overlooked simply because it wasn’t sent to the insurance broker in the shortened period of time.

The takeaway is clear: Yes, it’s possible to bind aviation insurance quickly when the purchase happens at the last minute. But that approach comes with trade-offs. By waiting too long to contact your insurance broker, you limit their ability to explore the full range of market options and secure the best policy for your needs.

Planning ahead isn’t just about convenience—it’s about ensuring your aircraft purchase is protected by the right coverage at the right price. So, if you’re considering buying an aircraft, don’t wait until the final days to get in touch with your broker. A little foresight goes a long way in setting you up for success.

As we head into Q4, the topic with the most buzz surrounding aviation insurance is the term “softening” marketplace. I’m sure some of you are seeing signs of this—especially if you’re currently insuring aircraft through an aviation insurance broker.

Why is the aviation insurance market showing signs of softening? One indication is that there is additional capacity, which means more underwriting companies entering the aviation space here in the USA.

Case in point, in the past year, we’ve seen 3-4 new underwriting company entrants. Some of these new insurers were existing insurance carriers for other lines of property/casualty coverages. And now they’re expanding their product offerings to include aviation insurance. (Namely aircraft hull and liability coverages, and aviation general liability coverage).

Within the past 18 months, interestingly, we’ve seen new additions in hull and liability carriers. Two of these insurers—Mach 2 and Eiger—are entirely new aviation underwriting companies. The other two—Rokstone and Beacon Aviation—are existing property/casualty insurers that have recently expanded into offering aviation product lines.

The additional market capacity is softening the premiums for certain classes of business. Namely those that are owner/flown, lower-to-mid-value turbine and some lighter piston aircraft classes.

As with all aviation insurance, it is never a ‘one-size-fits-all’ type of business. So, while some policies are currently seeing softening rates, others are seeing flat premiums or even lingering, smaller, single-digit increases.

The new insurers in the space have almost immediately impacted the $5M and below hull value aircraft. Not to mention, they’ve affected the $5M and below liability limit landscape. They’re doing this by providing more underwriting options for consumers, depending on pilot experience and asset values insured. From a consumer’s perspective, the current and future insurance path looks particularly favorable, compared to the years 2019-2023.

About the Author

Tom Hauge is a 20+ year aviation insurance industry veteran currently serving as National Sales Director for Wings Insurance. A 1992 graduate of the prestigious UND Aerospace aviation program. Wings Insurance is one of the largest privately held aviation insurance brokerages in North America who offers a ‘boutique’ customer experience but leveraging large brokerage house clout in the market.