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.