Aircraft insurance policies generally have a policy deductible amount as standard, in a similar way to a policy excess under a motor car or home insurance policy.
Aircraft insurance policies apply a deductible under the hull section, which covers physical loss of or damage to the aircraft.
The purpose of aircraft hull policy deductibles – either expressed as a fixed amount or percentage of the agreed value of the aircraft each claim is two-fold; to encourage the policy holder to protect their aircraft as they are responsible for the first part of a claim and to “remove” the Insurer(s) from paying small claims where the cost of handling these claims is disproportionate to the amount claimed.
Depending on the amount or percentage deductible, an owner or operator may choose to increase or reduce their deductible. Any change is likely to result in an adjustment to the premium charged.
Hayward Aviation can offer an aircraft hull deductible insurance policy, which is a separate policy from a main aircraft hull and liability policy.
In addition to standard aircraft hull deductibles, some policies include deductibles on a franchise basis.
This means that in the event of a claim under the hull section of the aircraft policy, if the amount of the claim is below the franchise deductible amount then the claim would not be paid under the policy, as the policy holder is 100% responsible for the cost of the claim. However, if the claim exceeds the franchise deductible amount then 100% of the claim is paid by the Insurer (subject to the terms & conditions of the policy).
Hayward Aviation does not presently offer Franchise Deductible insurance as a separate policy, but this coverage can be offered by certain Insurers as an addition to your existing policy. Please ask your Account Handler if you would like this additional coverage and we will advise if this is available on your policy and provide a quotation accordingly.