Keeping You Up

To Date With

Aviation

Issue 8 Vol. 2

August 2012

Next month we will answer:

1. In insurance, what do you call a condition or situation that presents a possibility of loss? 2. The RMS Titanic hit an iceberg and sank in April 1912 - what does the RMS stand for?

This month we will answer:

1. A= Alpha, B=Bravo and C=Charlie, What is S? S = Sierra in the Phonetic Alphabet 2. Where on the aircraft would you find the green navigation light? Right Wingtip — Navigation lights are the small lights located on each wingtip, there is a red light on the left wingtip, and a green light on the right wingtip.

Question and Answer

Insurance Pop Quiz:

Does Your Policy Pass The Test

Here's a little quiz that examines

some of the more misunderstood

and overlooked areas of aviation

coverage.

See if you know the answers—and if your policy measures up.

1. If you have a prop strike, will your policy pay for the resulting tear-

down inspection (probably costing $5,000 or more) required by Trans-

port Canada?

Some do, some don’t. Since prop strikes are fairly common, this can be

a very valuable coverage to have. Check your policy or ask your broker

which companies offer this coverage.

2. Will your $2,000 hand-held GPS (or other unattached equipment) be

covered under your policy?

Usually not. If it isn’t permanently attached it isn’t considered part of

the aircraft and is not covered under the hull insurance. Your home in-

surance may cover this type of item, but some companies have been

reluctant to pay similar claims. Find out how your home insurer deals

with aviation-related items.

3. Does your policy have a restriction on liability coverage for passen-

gers or family members?

This is one of the most misunderstood areas of aviation insurance. I

often talk to owners who are not even aware that their policies have

such restrictions. Many have purchased their insurance directly from a

company which pushes “bargain” policies with limits of $100,000 or

even less per person in the event of an accident. This means that you

will be personally liable for any amounts awarded by a court above this

limit. What will you do if the injuries are to members of your own fam-

ily?

- Insurance Pop Quiz: Does Your

Policy Pass The Test?

- Unmanned Aircraft To Monitor

The Arctic

- AeroReader Gets Redesigned

This Issue

Come find us at the gateway to Metro

Vancouver and BC! Excellent Commer-

cial Leasing Opportunities are available!

Come visit one of the friendliest Air-

ports in British Columbia!

www.pittmeadowsairport.com

By: Dave Fitzpatrick

Continued on Page 2...

Continued from Page 1...

With court awards in serious injury cases often reaching

millions and long-term care costs and lost lifetime income

estimates added, this is not a pleasant thought is it?

Make sure you know your

policy and carry adequate

limits. Saving a few bucks

on your premium just isn’t

worth the risk.

4. Let’s say you have a

forced landing in which

your aircraft sustains no

damage, but it is unsafe to

take off again from your

location. Will your policy pay to have your aircraft recov-

ered to the nearest airport?

Most policies do cover this, but there is usually a limit

based on a percentage of your hull coverage. For exam-

ple, a 20% limit on a $50,000 aircraft will give you $10,000

maximum coverage for moving the aircraft to a nearby

airport.

5. Will your policy cover you if you have an accident

while operating your aircraft on a grass or gravel strip?

Some policies restrict the types of landing areas from

which you may operate. If you fly to remote areas or sim-

ply enjoy grass or gravel strips make sure your policy cov-

ers you.

6. Does your policy cover you if you fly to Alaska or far

northern regions of Canada?

Each policy is different. Some do have restrictions on

where you may operate and will not cover you in places

like Alaska or northern Canada due to liability concerns.

If you fly to these areas, confirm that your policy does in

fact cover you there.

7. What is the deductible on your policy and is it different

if the aircraft is in motion or not in motion?

Some policies have nil deductibles while others can be

$10,000 or even higher. There can also be different de-

ductibles based on the status of the aircraft at the time of

the accident. Make sure that these facts don’t come as a

shocking surprise after you have a claim.

8. Who can fly your aircraft and be insured under your

policy?

Usually it’s only the pilot(s) named on the policy. Some

policies can have an “open pilot clause” which allows any-

one who meets the criteria spelled out in the clause to pi-

lot the aircraft. Keep in mind that these criteria are very

strictly enforced.

9. If you damage the hangar that you rent, will your policy

cover the damage to the hangar?

Most policies do not cover hangar damage. In some cases

you can add an endorsement to give you some (although

usually not enough) tenant’s coverage. If you rent a han-

gar consider a “hangar premises liability” policy.

So how did you—and your policy—fare? If you’re not sure,

or if you are unhappy with some of the answers you ar-

rived at, don’t waste any time contacting your aviation in-

surance broker and getting the answers you want. Paying

for a policy that won’t cover you adequately doesn’t make

too much sense, does it?

Keeping you up to

date with Aviation

Call for a Quote

1.877.789.2471

info@air1insurance.com

www.air1insurance.com

AeroReader Gets Redesigned

Unmanned aircraft to

monitor the arctic Northrop Grumman and L-3 MAS (aerospace and defense company from Canada) have teamed up and sent a Global Hawk Unmanned Aircraft Sys-tems (UAS) on a surveillance mission to the Canadian Arctic. In the statement provided by Northrop Grumman the "Polar Hawk" variant was constructed to “stay in the air for long periods of time, resisting difficult weather conditions and monitor land, ice, littoral and open water environments across the Arctic.” Duke Dufresne, vice president and general manager for Northrop Grum-man's unmanned systems, the operational components of the ‘Polar Hawk’ (Including a range of 22,000 kilometers (13,670 miles) will help Canada maintain constant surveillance over the country's huge Arctic re-gion, from one coast to the other. According to Northrop Grumman ‘the systems can also be used for vari-

ous civil and commercial missions such as border patrol, port surveillance,

hurricane monitoring, disaster relief support, and high-altitude scientific

research.’*

Source: www.Infoniac.com,

*www.northropgrumman.com

AeroReader is being redesigned to fit a wide range of topics. Our new name will be ‘Air1 Edge’ - Here

is what to look out for: More stories on all types of insurance coverage and trends and more interesting

facts and information on news around the planet. We will also be hearing from people and looking at cur-

rent events locally and from all over Canada.

The team here at AeroReader want to thank our readers for all the support provided over the last

year. We value any opinions on how we can make our newsletter better.

Get ready, the next issue of our monthly newsletter should grab your attention—and keep it!