Aviation Insurance

AVIATION INSURANCE
Blais Aviation Insurance Services

Insurance Professional & Pilot
Philip Blais
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AVIATION INSURANCE
BLAIS AVIATION INSURANCE SERVICES
TABLE OF CONTENTS
Introduction Slide 7
Angel Flight Coverage Slide 8
Damage History Decreases Value Slide 9
Insure To The Value Of The Loan Slide 10 – 11
Reimbursement Or Rental Slide 12 - 14
Reimbursement From Your Own Slide 15

Company
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AVIATION INSURANCE
TABLE OF CONTENTS
The Aircraft Sale Is Final Slide 16-22
Hot Starts On Turbine and Jet Slide 23

Engines
Warranty or Insurance Slide 24
Canadian Travel Slide 25
Mexico Travel Slide 26 – 27
Age vs. Price Slide 28
Approved Annual Training Slide 29

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AVIATION INSURANCE
TABLE OF CONTENTS
Too Small To Require Training Slide 30
Why are contracts relating to my

aircraft important from an Slide 31
insurance perspective?
How much liability coverage is Slide 32 – 34
enough?
How do I determine the proper
insured value for my aircraft? Slide 35
What measures can I take to

improve my aviation insurance Slide 36 – 38
program?
What’s the deal with single-pilot Slide 39
operations?
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AVIATION INSURANCE
TABLE OF CONTENTS
Should we carry war insurance or Slide 40
TRIA insurance or both?
Who may use our airplane? Slide 41 – 42
Can pilots be sued? Slide 43
How is a pilot who is injured (or

worse) compensated after an Slide 44
accident?
What is a Broker of Record Letter
(or Agent of Record Letter) and Slide 45 – 47
what does it do?
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AVIATION INSURANCE
TABLE OF CONTENTS
How can I get the lowest available Slide 48 – 52
rate on my insurance?
Who can pilot my aircraft ? Pilot
requirements and open pilot Slide 53 – 61
warranty.
Who Are The Aviation Markets? Slide 62 – 71
Glossary Aviation Insurance Slide 72 – 77

Aircraft Insurance
Aviation Facts Slide 78 – 97
Coverages Provided By Blais Slide 98 – 106

Aviation Insurance Services
Aviation Pictures Slides 107 – 118
Closing Slide 119 – 125

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AVIATION INSURANCE
INTRODUCTION
This presentation, provided by Blais Aviation Insurance Services, a division
of the Blais Group, is meant to answer a number of the questions often
asked by people concerned about aviation insurance. In addition, an
overview of the market with information relating to key aviation insurance
terms and insights about Blais Aviation Insurance Services is being
provided.
Blais Aviation Insurance Services is considered a leading

facility in the design, placement and service of aviation
related insurance products.
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AVIATION INSURANCE
Angel Flight Coverage
If I fly an Angel Flight, will this void or cause a problem

with my insurance coverage?
No, not if the Angel Flight is done without any compensation to the aircraft
owner or operator. Under "pleasure and business" or "industrial aid"
purposes of use, the key is if you are compensated for the use of the
aircraft. In this situation, clearly, no charge is made.
You may want to review your liability limits, however. Many aircraft owners
purchase relatively low limits of liability either to save premium dollars or due
to a lack of availability. The increased responsibility for your Angel Flight
guest may increase your exposure in the event of a mishap.
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AVIATION INSURANCE
Damage History Decreases Value
If my aircraft is damaged in an accident, the hull value can be

significantly decreased.
This damage history seems to live forever. Is this loss of value
covered by my aircraft hull insurance policy?
No!
Diminution of value is not covered under any aircraft hull insurance
policy on the insured aircraft. If someone else damages your aircraft
and they are found to be negligent, they are liable for the loss. In this
situation, their liability coverage may reimburse you for the
(negotiated) estimate of the decreased value to your aircraft.
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AVIATION INSURANCE
Insure To The Value Of The Loan
The value of my aircraft has fallen significantly during the past three years. My
lien at the bank is more than the aircraft is currently worth.
It is time to renew my insurance. I would prefer to insure the aircraft for its true
value and save the premium dollars but the bank requires me to insure to the
value of the loan. What to do?
Page 1 of 2
This is one of those strange snap-shots in time where economic pressures have
caused some aircraft values to fall faster than loan repayments. There are three
conflicts or problems with this situation. The banker wants full protection for the asset
collateralizing his loan. This is understandable. The insurance underwriter does not
want to significantly over insure the risk. This could cause what the insurance
community refers to as a moral hazard. The insured does not want to pay more
insurance premium than is necessary.
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AVIATION INSURANCE
Page 2 of 2
The only solution is negotiation. The insurance underwriter usually will agree to insure
an aircraft for the "Blue Book" (Aircraft Price Digest) published value plus 10% to
20%. This variation could be even higher with documentation of extra or updated
equipment or aircraft modification. Sometimes the underwriter will insure for the loan
value if he understands the bank's requirements. The banker may be willing to reduce
his demand to insure to the value of the loan if your financial strength is adequate and
you guarantee any shortfall in coverage. Some of our clients are simply pledging other
assets to secure the loan.
In either case, unless you insure to the pay-off value of the loan or to the market value
of the aircraft (Bluebook), you may be purchasing less insurance than it will take to
make you whole and pay off the lien. In the event of a total loss, you would have to
pay the difference to satisfy the debt to the bank. It then must be pointed out that the
small savings in premium may not justify the exposure.
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AVIATION INSURANCE
Reimbursement Or Rental
I have a friend who wants to use my aircraft. He will reimburse me for the cost of operating the aircraft and
will hire his own pilot.
Is this covered under my pleasure and business policy?
Page 1 of 3
This arrangement may not be as simple as it seems. Good business would dictate that you have
a written agreement. The best of friends may find it difficult to agree after a loss occurs. To assure
full compliance with your insurance policy, we recommend that a copy of the insurance policy be
included as a part of this formal lease agreement.
Depending upon the terms of this lease, you may have problems with your insurance. Some
"pleasure and business" policies allow for reimbursement of direct operating expenses. This may
be defined by the underwriter as an amount equal to one time the cost of fuel and oil. In other
policies, the flight is approved if no profit is made. Give special attention to your aviation
insurance policy's cost reimbursement requirements and definitions.
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Page 2 of 3
It is always a good idea to advise your underwriter and seek his approval. In most
cases, the lessee will want to be covered as an additional insured under your policy
and will request a certificate of insurance confirming coverage.
Another area of concern when leasing your aircraft to a friend is that he abides by the
terms and conditions of your insurance policy. If the lessee doesn't understand aviation
insurance, he may inadvertently void coverage by violating policy requirements. For
example, if your friend is furnishing his own pilot, he must either meet the open pilot
requirements of your policy or be specifically approved by your underwriter. Your friend
must be warned about changing pilots. Anyone allowed to operate your aircraft must
meet these pilot requirements. Just because the lease is approved by the underwriter
doesn't mean that the lessee can ignore the policy's provisions.
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Page 3 of 3
Many of our clients enter into such agreements with friends. We refer to these as "dry
leases". We advise the underwriter of these leases and allow him to make a nominal
premium charge. We usually ask that the "dry lessee" be named as an additional
insured under the liability section of the policy with a waiver of subrogation on the hull.
Subrogation is the assumption of an insured's rights of recovery by the
insurance company. If an insurance company pays a loss on an insured's
aircraft that was the result of someone else's negligence, the company assumes
the insured's legal rights of recovery from the negligent party. A waiver of
subrogation is when the insurance company relinquishes their right of recovery.
Some underwriters are reluctant to allow dry leases. Others have no problem with this
practice if only one or two lessees are involved. At the risk of underwriter rejection, it is
always best to have full disclosure to the underwriter in the event of a loss. If you are
allowing too many friends to use your aircraft, your underwriter may look at you as a
rental operation. Keep in mind, changing to a rental purpose of use may be expensive.
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AVIATION INSURANCE
Reimbursement From Your Own Company
I own my aircraft in a shell corporation and charge my own company for its use
when it is operated on business. Does this cause an insurance problem?
Most underwriters understand that this is an accepted and frequently used method of
arranging aircraft ownership. Often attorneys and accountants shelter liabilities or
improve tax situations by using shell corporations or LLCs.
The best way to avoid any conflict with your insurance policy is to advise the
underwriter of your intentions. Most companies want to be added as an additional
insured under the policy. This should be confirmed by a certificate of insurance.
Usually, the underwriter makes little or no premium charge for such a request. Many
of the broader policies define "insured" as any person riding on the aircraft or any
organization responsible for its use. Having your company added as an additional
insured and being a certificate holder is still the best arrangement.
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AVIATION INSURANCE
The Aircraft Sale Is Final
Have you ever purchased an aircraft and wondered when the sale is final and
when you are responsible for insuring the aircraft? Is it when you post your
deposit? Is it when you pay money to the escrow agent or when you sign the
bill of sale? Is it when the aircraft is delivered to you?
Page 1 of 7
These are questions that should be asked to determine who should insure the
aircraft. They say, "The Devil is in the detail". This certainly applies to the change of
aircraft ownership. Why is it so important? We have heard stories of overlapping
policies on the same aircraft at the time of purchase. Which one pays in the event
of a loss? Both insurance companies could point to the other, hoping to avoid a
claim. In like fashion, there are stories where the seller drops coverage and the
buyer has not yet put coverage in force. Oops.
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Page 2 of 7
In order for insurance to be valid and collectable, you must have an

insurable interest in the aircraft you are insuring. Insurable interest
means you are at risk of having an economic loss if the aircraft is
damaged, stolen, or destroyed. Second, there must be an
occurrence resulting in damage to the aircraft.
But who has the insurable interest? If my aircraft were destroyed,

you would suffer no economic loss and thus you could not purchase
insurance or collect a settlement on my aircraft. If you are
purchasing someone else's aircraft and the sale is not final, you are
not at risk of an economic loss until the sale is final. So, when is the
sale final?
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Page 3 of 7
When the sales agreement is signed?

When the bill of sale is signed?
When the title is transferred?
When the aircraft is delivered?
When funds transfer?
An aviation claims attorney answered the question by saying "it depends".

It depends upon the State law in question. In some jurisdictions, the case
law says that title is transferred when the Bill of Sale is signed. Others say
the title is transferred when the Bill of Sale is recorded by the governing
agency, in the case of aviation, the FAA.
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Page 4 of 7
Of course, a title must transfer free and clear. This means that there must be
a complete exchange of funds. No sales contract is fulfilled without
consideration. But from the way it is stated by my attorney friend, in certain
States you could have an exchange of funds but the sale is not final until the
Bill of Sale is recorded.
The recommended way to conduct a sales situation is with a properly
worded sales contract and the involvement of an escrow agent and your
attorney. Such a contract will outline the sale process. Many professional
aircraft dealers and traders employ the services of an escrow agent. For a
small fee, the escrow company accepts funds from the buyer and
accumulates the necessary paperwork to close the sale. Upon confirmation
from both buyer and seller, the escrow agent accepts the paperwork and
releases the funds simultaneously. The necessary documentation is
recorded with the FAA and the deal is done.
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Page 5 of 7
The sales contract should contain a statement giving the escrow agent the
authority to handle the closing. Wording such as, "Upon the Escrow Agent
being advised by the Seller and the Purchaser that the terms and conditions
of this Agreement have been met and the Escrow Agent has all of the
documents required for closing and holds the Purchase Price, the parties
agree that the Escrow Agent shall concurrently (1) release the Purchase
Price to Seller, (2) file a Federal Aviation Administration (FAA) Bill of Sale,
Form 8050-2 conveying title to the Aircraft on behalf of Purchaser with the
FAA and (3) forward Seller's original executed Warranty Bill of Sale to
Purchaser.
The risk of loss, injury, destruction or damage to the Aircraft by fire or other
casualty or occurrence shall transfer to Purchaser upon transfer of title
documents." The important word is concurrently. Using an escrow agent
eliminates much of the guesswork as to when the sale is final and when
insurable interest shifts to the new owner.
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Page 6 of 7
My attorney friend said, "As for insurable interest, this is another

question in its entirety. Was there a deposit? Was it refundable?
Was there pecuniary interest in the aircraft? After you answer these
questions, will an insurance policy cover it? You must look at the
specific policy wording. Most policies do not cover title or ownership
disputes." Now, we are back to a good sales contract and the
disciplines of a good escrow agent.
Unfortunately, many aircraft change hands without a proper sales

contract. In some cases, the only contract is verbal. In other cases,
the sales agreement is just assumed.
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Page 7 of 7
The absence of a written contract is fine if there is no loss and there are no
disputes during the transaction. Problems do occur, however. If the aircraft
suffers a physical damage loss during the sale process and there is no
insurance in force, which party suffers the loss? If there is an insurable loss
and the old owner and the new owner both have an insurance policy in
force, which one pays? If a disagreement does arise, an attorney friend said,
"Only the attorneys win".
I realize that the aircraft sales process is not really an insurance question. It
is a legal question and should be addressed by an attorney. I am certainly
no attorney. This is why I discussed this article with several attorneys and
professional aircraft dealers. All recommend the use of an escrow agent and
a formal closing. Involve an attorney who is familiar with the laws of your
State.
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Hot Starts On Turbine and Jet Engines
Hot starts are not covered under standard aviation hull

insurance policies. Aviation physical damage policies
specifically exclude engine losses resulting from internal
heat.
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Warranty or Insurance
My windshield broke in flight at 28,000 feet. No bird

strike, it just broke. Is it covered?
No. This would be considered to be wear and tear. If a

bird or some other object had hit the windshield, the hull
insurance policy would respond. This is possible but not
likely at 28,000 feet. My suggestion is to investigate to
see if this is a recurring problem with your make and
model aircraft. It could be a problem with the manufacture
or installation of the windshield.
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AVIATION INSURANCE
Canadian Travel
I am planning a pleasure trip to Canada . Do I have coverage

under my aircraft insurance? Do I need any special papers or
certificates of insurance to present to the authorities?
Yes. Canada is covered under the territorial limits of your standard

aviation insurance policy.
No. You do not need any special certification to enter Canada on a

non-commercial flight. Unlike Mexico , no special insurance policy
and no certificate of insurance are required for a non-commercial
flight into Canada . It is recommend that a pilot carrying a copy of his
or hers insurance policy, just in case you need to refer to it.
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Mexico Travel
I am planning a pleasure trip to Mexico . Do I have coverage under my aircraft

insurance? Do I need any special papers or certificates of insurance to present to the
authorities?
No. Mexico is not covered under the territorial limits of your standard aviation
insurance policy.
Yes. You do need special certification to enter Mexico on a non-commercial flight.

Mexico requires a special insurance policy and certificate of insurance are required
for a non-commercial flight into Mexico.
With the purpose of facilitating General Aviation Flights

to Mexico, information has been prepared by
SENEAM, the Mexican government Air Traffic Service provider,
responsible for the Air Navigation Service in Mexican
Airspace. A copy of this document can be found on the Blais Aviation Insurance Services Website.
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Mexico Travel
It is important to obtain adequate protection when flying into Mexico by

private aircraft. Blais Aviation Insurance Services can arrange a Mexican
Aviation Liability Policy that meets the requirements of the Mexican
authorities.
We offer a policy, written in Spanish and English and prepared in our office,
through one of the largest Mexican Insurance Companies. We give immediate
service and the policy is normally issued the same day application and
money are received in our office.
Why Mexico Insurance? American Insurance is not recognized in Mexico.

According to Mexican Law, foreigners flying into Mexico must purchase
insurance from an authorized Mexican Insurance Company. Since we issue
the policies directly in our office, we can mail your policy to you or you can
come by to pick it up.
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AGE vs. PRICE
I am 67 years old. My current insurance company has insured

me for five years. I have been given a premium quotation for
significantly less money than my current underwriter quoted to
renew my account. Should I change and save the money?
This is a judgment call. Obviously, we don't want to waste money.

But, the age factor is a real problem when purchasing insurance. If
your current insurance company has the reputation of continuing to
work with their clients as they age, you may want to pay the
additional premium and stay with your current company.
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Approved Annual Training
I don't want to go to SimCom or FlightSafety International for annual training. It

is too expensive, too far away, and takes too long. I have a local CFI who is very
good. Can he give me my annual training?
The probable answer is no. It depends upon the type of aircraft you fly. With
larger aircraft or high performance aircraft, many underwriters require annual
simulator training. Smaller, less sophisticated aircraft may not require
simulator-based training but may require a formal school. Most insurance
companies have a list of approved training facilities for each make and
model of aircraft. Your local CFI is probably not on the underwriter's
approved list. This does not mean the local guy does not do a good job; he
simply has not formalized his school and submitted the necessary
information to the underwriting community to be recognized. In fact, most
local instructors do not want to do the work necessary to obtain underwriter
approval.
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Too Small To Require Training
I have a Cessna 172. Is annual recurrency training necessary to comply

with underwriting requirements?
Small, light, single engine aircraft, under 200Hp with less than six seats
usually are considered primary trainers. Most underwriters do not require
annual training on these aircraft. This does not mean that an occasional
refresher is not advisable. There is a difference in training for the purpose of
compliance and training for the sake of safety. If you are training just to
satisfy the underwriter, your priorities may be wrong.
Don't forget the FAA Wings Program. You may have one in your area. This
is an excellent opportunity for the light aircraft owner to get an annual flight
check without extreme cost. Many underwriters recognize and recommend
the FAA Wings Program.
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Why are contracts relating to my aircraft important from an insurance
perspective?
Did you know that every aviation contract or agreement has the potential to
limit or even void your insurance coverage? Most contracts you enter
relating to your aircraft contain insurance and/or hold harmless-
indemnification clauses. Signing these agreements contractually obligates
you to comply with the provisions they contain. If the insurance-related
stipulations fall outside the scope of your coverage, the assumed risk
becomes yours. Not good. All agreements, including Purchase Agreements,
Bank Loan Agreements, Maintenance/FBO contracts, Hangar Agreements,
Charter Agreements, etc. should be reviewed by appropriate legal counsel
for any legal ramifications with a copy sent to your insurance broker to
review from an insurance perspective. Hold harmless agreements can be
particularly troublesome. Reference our article entitled “Insurance
Perspective on Hold Harmless Agreements." Request a copy from Blais
Aviation Insurance Services.
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How much liability coverage is enough?

Page 1 of 3
1. Since there is no definitive method available to determine the appropriate

liability coverage limit to select, your response to the following questions
can help guide you in selecting a reasonable limit based on your
exposure;
2. Number of passenger seats in the aircraft. Obviously, an aircraft with 14 passenger

seats presents a greater exposure and will require a higher liability coverage limit
than one with 7.
3. Average passenger load per flight. Again, if your average passenger load per flight
is 5, you would need to carry a higher coverage limit than if it was 2.
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Page 2 of 3
4. Composition of passengers (Employee vs Guests). If the majority of

passengers carried on the aircraft are employees, you may be able to justify a
lower liability limit since a properly structured Workers Compensation program
should be the sole remedy for injuries to employees. Conversely, if the majority
of passengers are guests, you would need to select a higher liability limit.
5. What assets need to be protected? Don’t let a holding company give you a
false sense of security. Savvy plaintiff attorneys will attempt to pierce shell
companies and corporate veils in an effort to get at the “real money” whether it
be a larger corporation or an individual’s net worth.
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Page 3 of 3
6. If you have an umbrella policy that covers the aviation

exposure, you will need to make sure your aviation liability limit
meets the minimum required umbrella limit.
7. Generally speaking, since it is impossible to determine the

exact coverage limit you need, it is best to buy as much as you
can reasonably afford. Obtain quotes for alternate limits each
year, as rating of this coverage can vary greatly year to year.
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How do I determine the proper insured value for my aircraft?

Unlike many other property policies, aircraft policies are usually written on an
“agreed-value” basis. Therefore, you can over insure and under insure to
your detriment. If you over insure, the insurance company will typically elect
to repair the aircraft even when there is major damage – leaving you to deal
with significant damage history. If you under insure, the insurance company
may elect to pay you for the total loss and sell the salvage – you would lose
your equity. The proper insured value to carry is the amount of money it
would take to purchase another aircraft exactly like yours (i.e. same year,
make and model, etc. – not a brand new one). The aircraft dealer you
purchased the aircraft from should be able to give you the best idea of its
current value. In addition, your insurance broker should have resources to
help give you an idea of this value. This coverage limit should be reviewed
annually on renewal and adjusted accordingly.
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What measures can I take to improve my aviation insurance program?

Page 1 of 3
A. Develop, implement and maintain a documented flight safety program.

Address critical areas such as approach and landing accidents and
controlled flight into terrain (ALAR/CFIT), dissimilar aircraft operations,
runway incursions, ground handling safety, etc. Not having accidents
or incidents in the first place in order to keep premiums down is
fundamental risk management!
B. Adhere to an Pilot Operating Handbook.
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Page 2 of 3
C. Get annual recurrent training in the make and model. Okay, so this is required anyway, but the
fact is this is key to most insurance carrier's willingness to offer their broadest coverage and
most competitive rates. Underwriters typically recognize the value of any given training for only
a twelve month period, which equals a policy period, so that training completed two or more
years ago does not impact the underwriting as favorably as recurrent training in the make and
model within the last twelve months. In short, training does affect coverage availability and
premium.
D. Develop and implement a security plan. There are numerous resources with sample security
plans available. Example: AIG Aviation, Inc.’s Security Plan.
E. Develop and implement an accident response plan. Again there are valuable resources
available to help you with this process. Example: USAIG’s Corporate Aircraft Accident
Response Plan is an excellent template to use in getting started.
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Page 3 of 3
F. Details. Quantify all the things you do that make your operation superior. Standard
Operating Procedures, training to supplement the manufacturer’s programs,
personal minimums, documented Safety and Security programs, etc. Complete all
applications and forms timely, completely and truthfully. Even though there are few
line-item credits in aviation insurance, you should provide Blais Aviation Insurance
Services (your broker) with as much “ammunition” as possible about your aircraft
and flight operations. This will help your account stand out from the sea of
submissions most underwriters have on their desks every day.
G. Review and evaluate your coverage regularly and thoroughly. Perhaps the value of
the airplane has dropped in recent years but the insured value has not been
properly adjusted. Operations change constantly so maybe there is coverage you
didn't need last year that you should have this year. Consult with Blais Aviation
Insurance Services (your broker) regularly, that’s why we’re here!
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What’s the deal with single-pilot operations?
Single-pilot operations are possible;

however,underwriters are less willing to extend high
liability limits, offer preferred rates and will flat out require
two-pilot operations in some circumstances. The industry
is also attempting to address the upcoming proliferation
of “microjets” that will open up high-performance, flight-
level operations to many owner-pilots.
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Should we carry war insurance or TRIA insurance or both?
The subject of war insurance and the expanded terrorism coverage

available under the Terrorism Risk Insurance Act (TRIA) of 2002 can
be confusing. Please visit with Blais Aviation Insurance Services and
ask for more information about War coverage and read our article
about the Terrorism Risk Insurance Act of 2002.
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Who may use our airplane?

Page 1 of 2
This question is often addressed in the context of cost reimbursement. That

is, how much can be charged for the use of the airplane before running afoul
of the insurance policy and/or the FARs. The short answer is, you can’t
charge anything for the use of the airplane and “charge” doesn’t just mean
cash payments. Aircraft insurance policies are designed for “your” use. The
“your” is the Named Insured. Therefore the Named Insured can use the
airplane for its pleasure and business. For example, ABC Company owns
the airplane and utilizes it to transport ABC employees to conventions, move
parts between plants, send ABC executives to meetings or bring ABC clients
to visit company headquarters.
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Page 2 of 2
Problems arise when XYZ Company, whose jet is down for

maintenance, wants to be able to use the ABC Company plane for
supplemental lift. Or when ABC Company’s CEO has a buddy who
wants to use the plane for a trip to the Bahamas. Or ABC Company
makes widgets and the CEO is John Smith. John Smith owns an
airplane under John Smith, LLC and he utilizes the airplane both for
his family travel and also allows ABC Company personnel to utilize it,
as needed. These alternative uses should be orchestrated with the
help of an aviation attorney, your tax advisor and your broker so the
insurance company can properly address any cost reimbursement
that may fall outside the policy parameters.
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Can pilots be sued?
Absolutely. For example, in the aftermath of an accident, the policyholder is

sued for negligence as the owner of the aircraft. Meanwhile, a lawsuit naming
the pilot personally for negligence is also filed. The insurance carrier’s
obligation is to defend and take care of the policyholder. If the pilot is an
employee of the policyholder or has been specifically added as an additional
insured, the insurance carrier will defend the additional lawsuit for the pilot.
(Remember the liability limit is shared by all parties; it is not a per person or
per lawsuit occurrence limit!) If the pilot is an independent contractor and has
not been added to the policy as an insured, the pilot will have to defend that
lawsuit “solo.” Remember, it is possible to be an approved pilot but not
necessarily a covered pilot. The fact that you are an approved pilot, whether
by name in the policy or by meeting the policy’s open pilot warranty, simply
means that if there is a loss while you are at the controls, coverage will still
be in place for the policyholder.
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How is a pilot who is injured (or worse) compensated
after an accident?
It depends. If the pilot is an employee of the policyholder, workers

compensation coverage should apply. Independent contractor pilots
should still have their own workers compensation coverage, in
theory. Absent workers compensation, perhaps there is major
medical or life insurance to fall back on. Workers compensation laws
usually bar employees from suing their employers. If however the
pilot is not an employee, he or she could potentially sue the
policyholder just like any other passenger! This is a big reason why
underwriters prefer the regular use of employee pilots.
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What is a Broker of Record Letter (or Agent of Record Letter) and what does it do?
Page 1 of 3
Insurance companies rely on insurance brokers to bring account

submissions to them for evaluation. There are only a few aviation insurance
companies, each with limited staff, and they do not want to tie up their
underwriters by quoting the same risk to several different brokers. Therefore,
each will recognize only one broker on any given risk on a first-come, first-
serve basis. The first broker who presents a submission to an aviation
insurance underwriter is the official "broker (or agent) of record." The
insurance carrier assumes this person was your first choice since they
contacted them first. The choice of broker belongs entirely to the customer,
so the broker can be later changed if that is the wish of the customer. Enter
the Broker of Record Letter. It is a serious document that accomplishes the
following:
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Page 2 of 3
A. Terminates the relationship between you and the current broker and suspends the
current broker's ability to negotiate on your behalf with the insurance company.
B. Affirms the appointment of a new broker, giving that broker the sole ability to
negotiate with the insurance company for you, and grants access to any
underwriting information or proposals that are currently "on the table." (Without a
significant change in the basic underwriting information, if the insurance company
has already made a firm commitment to the first broker to either decline or provide
a quote, the new broker usually "inherits" that decision – whether it be a
declination or a specific premium proposal.)
C. Provides a relief mechanism, expressed in terms of a specified number of days

"waiting period," to allow full disclosure of the letter to all parties involved, thereby
granting the former broker the opportunity to review the implications of the letter
with you and to confirm your desire to change brokers.
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AVIATION INSURANCE
Page 3 of 3
Be certain you understand the ramifications of this

document. Have your broker explain its intent to you
before you sign it! You are best served by selecting, up
front, one competent aviation insurance broker who has
access to all the markets and will consult with you on the
resulting proposals.
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AVIATION INSURANCE
How can I get the lowest available rate on my insurance?
Page 1 of 5
This is one of the most common questions in our

business. Everyone wants the best coverage at the
lowest rate, so we would like to share with you the
following tips that may help you lower your premium at
your next renewal.
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AVIATION INSURANCE
Page 2 of 5
Annual Training
Annual recurrent training is usually required for higher limits of liability, pressurized
aircraft or turbine-powered aircraft. Some insurance underwriters even offer lower rates
or better coverage for pilots who take annual recurrent training. Ideally, this consists of
a manufacturer-recommended program that includes ground and flight training. For
single-engine and light twin-engine aircraft, an annual Flight Review and Instrument
Proficiency Check in the aircraft are usually acceptable if the flight instructor meets the
policy’s Open Pilot Warranty. This is usually the best choice when manufacturer-
recommended programs are not available and they can be coupled with the FAA
WINGS or SEAWINGS program, which is highly recommended as well. Also,
underwriters often require an annual FAA medical exam for pilots over 65 years of age.
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AVIATION INSURANCE
Page 3 of 5
Association Memberships
Some aviation ownership clubs and advocacy groups, such as

the AOPA and EAA, have special insurance programs that can
provide a discount for their members. Blais Aviation Insurance
Services has access to these programs, so you can continue to
do business with the agent you trust knowing that you don’t
have to change agents to get the best price. We can apply for
these discounts on your behalf, so make sure your membership
is current and that we are aware of your membership numbers
for associations like these.
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AVIATION INSURANCE
Page 4 of 5
Pilot Ratings and Experience
Most underwriters agree that experience is the best teacher. One of the biggest
challenges in aviation insurance is finding affordable coverage for pilots transitioning
into more advanced aircraft. NTSB accident reports have shown the underwriters
which groups of pilots are the most at-risk, and they structure their rates accordingly.
For that reason, rates are higher for pilots with fewer than 1000 total logged hours or
those with fewer than 50 hours logged in the model of aircraft they will be insuring. An
IFR rating is highly recommended and often required for aircraft that have a "glass
cockpit" avionics, retractable landing gear or more than four seats. Also, be sure you
have logged at least 25 flight hours in the last 12 months, or you may be required to
get additional recurrent training. When transitioning to a more advanced aircraft,
understand that the first year of insurance may be more expensive, but if you commit
to an aggressive training and time-building program your renewal rate could drop
substantially.
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AVIATION INSURANCE
Page 5 of 5
Commercial Aircraft
Commercial and corporate aviation faces a different challenge. Corporate turbine pilots usually
already have either a Commercial or ATP certificate and the appropriate ratings. Your choice of
training facilities can affect your premium and your overall cost of ownership. Well-known, full-
motion simulator training centers like Flight Safety International, SimCom and CAE Simuflite are
accepted by virtually all the underwriting companies. There are also lower-cost, in-aircraft training
options with which we are well acquainted, but not all underwriting companies accept every in-
aircraft training program. Because training and insurance go hand-in-hand, we can help you
compare the total cost involved so you can make the an informed decision about your insurance
and training options. Lowering your total cost of ownership is one of the ways Blais Aviation
Insurance Services makes corporate aviation more efficient and profitable.
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AVIATION INSURANCE
Who Can Pilot My Aircraft?
Pilot Requirements and the Open Pilot Warranty
Page 1 of 9
We often get questions from our insured's regarding the Open Pilot Warranty
(sometimes referred to as Open Pilot Clause) on their quote or policy. The
Open Pilot Warranty (OPW) in your aircraft policy lets you know who is
allowed to fly your aircraft in addition to the named pilots. The hours and
ratings listed under the Open Pilot Warranty do not reflect any of the named
pilots. It simply states, if any pilot who meets or exceeds the following
requirements, and is flying the aircraft with your (the named insured's)
permission, and within the scope of the policy, then you have coverage. That
individual pilot may not have coverage, and in many cases should have a
non-owned policy to cover his individual liability, but your liability is still
protected.
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AVIATION INSURANCE
Page 2 of 9
A typical Open Pilot Warranty on a fixed gear, 180 horse

power, aircraft might read:
Any Pilot, holding an FAA Private Pilot or more advanced

certificate, having a minimum of 300 Total Logged Flying
Hours, including 10 hours in the insured make and model
aircraft.
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AVIATION INSURANCE
Page 3 of 9
This basically says that if a pilot has at least a

private pilot certificate with 300 hours total logged
time, including 10 hours in that particular model
of aircraft, (i.e. Cessna 172, PA-28-180) than the
named insured is covered while that pilot is using
the aircraft within the scope of the policy and with
the insured's permission.
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AVIATION INSURANCE
Page 4 of 9
The OPW for a complex aircraft may require commercial, and

instrument ratings, with a higher number of hours. Multi-Engine
aircraft will usually require a multi-engine rating for their OPW, and
some aircraft may require a type rating, and make and model ground
and flight school. Many larger aircraft will require make and model
school in the last 12 months. As you can see, the OPW will greatly
vary for different aircraft. Some policies with various aircraft and
situations may have a Named Pilot Only requirement, stating that you
are only covered if the pilot is named to your policy.
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AVIATION INSURANCE
Page 5 of 9
What if someone who is going to be flying your aircraft

does not meet the requirements of the OPW? You will
have to submit their pilot information to your company to
see if they will qualify to be added as a named pilot. The
"Catch-22" of this situation is that the companies do not
like to add too many pilots to the policy. Many prefer to
keep it at four pilots for an aircraft.
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AVIATION INSURANCE
Page 6 of 9
The rule-of-thumb for any aircraft policy is that you

usually want to name the pilots who will be flying your
aircraft on a regular basis. If it were a very occasional
use, then perhaps they would meet the OPW
requirements. At the same time, be sure that you are not
adding more pilots than your company would feel
comfortable with.
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AVIATION INSURANCE
Page 7 of 9
A very important point to remember is that even though a

pilot may meet the requirements of your OPW, a Pleasure
and Business policy does not allow you to make a charge for
the use your aircraft. If there is a loss and it is discovered
that the pilot was giving some sort of fee or remuneration for
using your aircraft, coverage could be in jeopardy. If you are
ever in doubt, call Blais Aviation Insurance Services for
verification of what your policy will cover.
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AVIATION INSURANCE
Page 8 of 9
Some insurers issue broadening endorsements on their

policies for preferred insured, which allow for a
suspension of the Open Pilot Requirements to allow any
pilot in the employ of an FAA Certified Repair Station to
operate the aircraft in conjunction with repairs or
maintenance. The Key here is FAA Certified Repair
Station. If your shop were not an FAA Certified Repair
Station then this provision would not apply.
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AVIATION INSURANCE
Page 9 of 9
To summarize, always make sure that any pilot, who may

fly your aircraft is either named to the policy, or meets the
requirements of the Open Pilot Warranty. Also, make sure
that they are using the aircraft in accordance with your
policy's terms. If they do not, there is a good chance
coverage could be in jeopardy.
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AVIATION INSURANCE
WHO ARE THE AVIATION MARKETS THAT

BLAIS AVIATION INSURANCE REPRESENT?
ACE USA (Formerly CIGNA)

AIG Aviation Inc.
Phoenix Aviation Managers
London Aviation Underwriters Inc.
United States Aircraft Insurance Group Inc. (USAIG)
Aerospace Insurance Managers
The Travelers Insurance Group
W. Brown & Associates Inc.
US Specialty Insurance Co. (Formerly HCC Aviation)
Global Aerospace
C.V. Starr & Co., Inc.
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AVIATION INSURANCE
AVIATION MARKETS
Blais Aviation Insurance Services is proud to represent all the following major
insurance markets. Our long term contracts and personal relationships enable us
to secure the best coverage for your premium dollar.
Aerospace Insurance Managers

Dallas, TX
aerospaceim.com
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AVIATION INSURANCE
AVIATION MARKETS
American International Group (AIG)

Atlanta, GA/Dallas, TX
aigaviation.com
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AVIATION INSURANCE
AVIATION MARKETS
Global Aerospace (AAU)

Kansas City, MO/Dallas, TX
global-aero.com
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AVIATION INSURANCE
AVIATION MARKETS
London Aviation Underwriters

Seattle, WA
londonaviation.net
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AVIATION INSURANCE
AVIATION MARKETS
National Hangar Insurance Program/

The Travelers Insurance Group
Tulsa, OK
coveragefirst.com
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AVIATION INSURANCE
AVIATION MARKETS
Phoenix Aviation Managers

Atlanta, GA/Dallas, TX
phoenixaviationmgrs.com 68
AVIATION INSURANCE
AVIATION MARKETS
United States Aircraft Insurance Group (USAIG)

New York, NY/St. Louis, MO
usau.com
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AVIATION INSURANCE
AVIATION MARKETS
U.S. Specialty Insurance Company

Dallas, TX
ussicaviation.com
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AVIATION INSURANCE
AVIATION MARKETS
W. Brown & Associates

Newport Beach, CA/Memphis, TN
wbais.com
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AVIATION INSURANCE
Glossary
Aviation Insurance / Aircraft Insurance
Additional Insured - a person or persons other

than the original named insured, who are protected
under the terms of a policy.
Aircraft Liability Insurance - protects insureds

from claims by other parties ("third parties") for
bodily injury or death and property damage. The
claim has to result from an occurrence related to the
operation of the aircraft.
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AVIATION INSURANCE
Glossary
Guest Voluntary Settlement - also known as admitted liability,

provides coverage to a passenger who suffers certain forms of
bodily injury whereby a settlement is offered on a predetermined
basis in exchange for a release of liability.
Hull Insurance - coverage for physical damage done to the

aircraft. It is not liability coverage and is therefore triggered by a
covered event, regardless of the reason for the damage or loss.
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AVIATION INSURANCE
Glossary
Industrial Aid - refers to corporate-owned aircraft

that are used for the transportation of executives,
employees, customers and guests, and which are
flown by full-time professional pilots.
Medical Payments - coverage that pays medical,

surgical, hospital and funeral expenses up to the
applicable limit, regardless of the liability of the
insured.
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AVIATION INSURANCE
Glossary
Named Insured - the actual policyholder who is specifically named

on the policy. Named insureds are responsible for premium payment,
have the authority to cancel or make changes to a policy, will have a
say in the claims process, and are included on any claim checks that
are issued.
Open Pilot Warranty - a clause in the policy that will state the
minimum qualifications for a pilot to meet who has not been previously
listed by name on the policy as a pilot. A pilot who is named on the
policy or who "meets the open" simply affirms to the named insured
that the pilot's legal and proper use of the aircraft will not void the
named insured's coverage. It does not necessarily mean that the
named pilot will be covered under the liability protection of the policy.
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AVIATION INSURANCE
Glossary
Pleasure & Business - refers to aircraft that are owned

and/or operated by pilots who are not employed as full-time
professional pilots.
Smooth Limit - a limit of liability that offers a combined

single limit of coverage that applies to all bodily injury and
property damage claims. A specified maximum amount can be
paid out from a covered occurrence in any combination -
passenger bodily injury, other person's bodily injury or
property damage.
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AVIATION INSURANCE
Glossary
Sub-Limit - usually a combined single limit of coverage that

applies to all bodily injury and property damage claims,
however, a reduced amount of coverage from the single limit is
available to pay for claims resulting from bodily injury.
Subrogation - a doctrine that gives an insurance company

the right to attempt to recoup some or all of the money they
have paid on behalf of the insured. They do this by proving that
another party was legally responsible for the loss and that the
party has the financial ability to reimburse the insurance
company.
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AVIATION FACTS
Number of U.S. Airports ¹

(As of December 31)
2005 2004 2003

Total Airports.............................… 19,854 19,820 19,581
Public Use Airports.................… 5,270 5,288 5,286
# with Paved Runways....… 3,942 3,941 3,938
# with Unpaved Runways.… 1,328 1,347 1,348
# with Lighted Runways....… 4,045 4,037 4,026
# with Unlighted Runways… 1,225 1,251 1,260
Private Use Airports...............… 14,584 14,532 14,295r
# with Paved Runways.....… 4,836 4,771 4,678
# with Unpaved Runways… 9,748 9,761 9,617
# with Lighted Runways...… 1,346 1,301 1,223
# with Unlighted Runways.. 13,238 13,231 13,072
Public use airports abandoned… 14 10 19
Private use airports abandoned. 115 117 214
Certificated Airports*...............… 575 599 628
¹ Includes civil and joint-use civil-military airports, heliports, STOLports, and

seaplane bases in the U.S. and its territories.
* Certificated airports serve Air Carrier Operations with aircraft seating more
than 9 passengers seats. (FAR Part 139).
r revised
Source: AAS-330 As of: 03/15/06
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AVIATION FACTS
THE TEXAS SYSTEM OF AIRPORTS
Commercial Service Airport
Red Stars
General Aviation Airport
Blue Dots
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AVIATION FACTS
ACTIVE CERTIFICATED PILOTS 2005
TOTAL % WOMEN %
Pilot Certificates 609,737 100% 37,243 100%
Student 87,213 14% 9,857 26%
Private 245,020 40% 15,036 40%
Commercial 132,551 22% 7,421 20%
ATP 144,535 24% 4,908 13%
Other * 29,686 5% 21 0%
•Includes helicopter (only). Glider (only) and recreational pilots

Source: FAA Administrator’s Fact Book (November 2005)
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AVIATION FACTS
ACTIVE CERTIFICATED PILOTS 2005
TOTAL % WOMEN %
Non – Pilot 515,293 100% 18,666 100%

Certificates **
Mechanic 317,111 62% 5,932 32%
Repairmen 39,231 8% 2,039 11%
Ground Instructor 73,735 14% 5,500 29%
Flight Engineer 59,736 12% 2,007 11%
Other *** 25,840 5% 3,188 17%
** Excludes non pilots 70 years old or older in all certificate types except flight engineers and flight navigators
*** Includes flight navigators, parachute riggers and dispatchers
Source: FAA Administrator’s Fact Book (November 2005)
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AVIATION FACTS
ACTIVE CIVIL AIRCRAFT 2005
TOTAL % %
Total Aircraft 239,162 100% 100%
Piston 166,064 69%
Turboprop 10,681 4%
Turbojet 17,985 8%
Rotorcraft 9,556 4%
Other 27,150 11%

Source
FAA Administrator’s Fact Book (November 2005)
FAA Aerospace Forecasts Fiscal years 2005-2016
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AVIATION FACTS
TOTAL % %
GA Aircraft 219,780 100% 92%
Piston, Single Engine 144,530 66%
Piston, Multi-Engine 17,480 8%
Turboprop 8,030 4%
Turbojet 8,628 4%
Rotorcraft 7,595 3%
Experimental 22,300 10%
Other 6,027 3%
Source
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AVIATION FACTS
TOTAL % %
Air Carrier Aircraft 19,382 100% 8%
Piston 4,269 22%
Turboprop 3,281 17%
Turbojet 9,235 48%
Rotorcraft 2,571 13%
Source
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AVIATION FACTS
US AIRPORTS 2003/2004
TOTAL %
Aircraft Landing Facilities 19,842 100%
Airports 13,817 70%

Heliports 5,436 27%
STOL ports 88 0%
Seaplane bases 501 3%
Publicly Owned 5,130 26%
Privately Owned 14,715 74%
Public Use 5,288 27%
Private Use 14,532 73%
Airline Served (2003) 633 3%
Regionally Served (2004) 748 4%
Longest Runway 19,842 100%
Less than 3,000 Ft. 13,726 69%

Between 3,000 ft. and 5,999 ft. 5,045 25%
Between 6,000 ft. and 9,999 ft. 802 4%
10,000 ft. or more 269 1%
Landing Facilities Abandoned 127 100%
Public Use 10 8%
Private Use 117 92%
Source: FAA – Regional Airline Associates Notes: * Certificated airports serve Air Carrier Operations with aircraft seating more than 30
passengers (FAR Part 139 ** total airports receiving scheduled service (as per RAA)
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AVIATION FACTS
TEN BUSIEST AIRPORTS (FY) 2005

TOTAL GA OPERATIONS
OPERATIONS
AIRPORT
Atlanta Int’l 984,390 11030
Chicago O’Hare Int’l 980,372 25,312
Dallas Fort worth Int’l 739,517 8,520
Los Angeles International 653,534 14,297
Las Vegas/McCarran Int’l 605,493 67,612
Washington Dulles 588,712 75,118
Denver International 566,036 9,592
Phoenix Sky Harbor Int’l 559,887 40,945
Houston Bush Intercont’l 552,353 17,124
Minneapolis St. Paul Int’l 543,784 32,304
Source: FAA
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AVIATION FACTS
AVIATION ABBREVIATIONS
The following abbreviations are found in aviation insurance applications,
policies, aircraft advertisements, manuals and pilot operating handbooks.
Insurance abbreviations
Page 1 of 11
AMES – Aircraft multi engine, sea

ASES – Aircraft single engine, sea
ATP – Airline Transport Pilot
BFR – Biannual flight review
C – Commercial license
CFI – Certified flight instructor
CFII – Certified flight instructor, instrument
Conv - Conventional landing gear with tail wheel
Dual – training given by a qualified instructor
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AVIATION FACTS
Page 2 of 11
Fixed – non-retractable landing gear

Fixed tri – Fixed tri-cycle landing gear
FR – Flight review
G & F – ground and flight
GNIM – ground not in motion
GNIF – Ground not in flight
G & T – Ground and taxi
Heli – helicopter or rotor wing
Hr - Hours
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AVIATION FACTS
Page 3 of 11
I – Instrument rated
IFR – Instrument rated
ICC – Instrument competency check
IPC – Instrument proficiency check
M – multi engine
Med – medical payments
Med pay – medical payments
ME – Multi engine
MEL – Multi engine land
MEI – Multi engine instructor
MM – Make and model
M & M – Make and model
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AVIATION FACTS
Page 4 of 11
OPW – Open pilot warranty

P – Private license
Pax - Passengers
PIC - Pilot in command
RG – Retractable gear
Rotor – Helicopter or rotorcraft
RW – Rotor wing
SE – Single engine
SEL – Single engine land
SES – Single engine sea
SIC – Second in command
Solo – no passengers or flight instructor in aircraft
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AVIATION FACTS
Page 5 of 11
TO – Take off
TO & L – Take off and landings
TRI – Tri-gear
TW – Tailwheel
TT – Total time
TTL – Total time logged
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AVIATION FACTS
AIRCRAFT ABBREVIATION
Page 6 OF 11
0SFRM - zero time since a factory remanufacture

0SMOH - Zero time since major engine overhaul
FWF - Firewall forward
MDH - major damage history
NDH - No damage history
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AVIATION FACTS
Page 7 OF 11
SCMOH - Since chrome cylinder major overhaul

SFRM - Since factory remanufacture
SMOH - Since major engine overhaul
SOH - since engine overhaul (not necessarily a major)
SPOH - Since prop overhaul
STOH - Since top overhaul (pistons, cylinders and valve train)
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AVIATION FACTS
Page 8 of 11
TBO - Time between overhauls (factory recommendations)

TT - Total time
TTA - Total time on the airframe
TTAE - Total time on the airframe and engine
TTE - Total time on the engine
TTSN - Total time since new
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AVIATION FACTS
AIRCRAFT PERFORMANCE AND SPECIFICATION ABBREVIATIONS

Page 9 of 11
Amp - Amperage of the alternator (electrical system rating)

Alt - Alternator
AOC - Angle of climb
C/S - Constant speed (governed speed, adjustable pitch) propeller
Cu. In. - Cubic inches displacement of engines
Fixed tri gear - non retractable tricycle landing gear with a nose wheel
F/P - Fixed pitch (non adjustable) propeller
FPM - Feet per minute (usually regarding climb)
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AVIATION FACTS

Page 10 of 11
Gen - Generator
GPH - Gallons per hour MPH - Miles per hour
HP - Horsepower of engine
KTS - Knots (1 knot = 1.151 statue miles per hour, or 1852 kilometers per hour)
L/R - Long-range fuel
NM - Nautical mile = approximately 6,080 ft.
Oct. - Octane rating of fuel.
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AVIATION FACTS

Page 11 of 11
PSI - Pounds per square inch (tire and strut pressure)

Ret. tri gear - Retractable tricycle landing gear with a nose wheel
ROC - Rate of climb
SM - Statue mile = 5,280 ft.
Sq. Ft. - Square feet regarding wing area.
STD - Standard fuel
V – Volts
Vis - Viscosity of oil
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AVIATION INSURANCE

PROVIDES COVERAGE FOR
Page 1 of 9
Pleasure and Business Aircraft

Commercial Aircraft
Non-Owned Liability (included Non-Owned
Aircraft Liability Damage)
Airport Liability
Fixed Base Operator
Hangar Coverage
Flight School
Warbirds
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AVIATION INSURANCE
PROVIDES COVERAGE FOR
Page 2 of 9
Experimental and Home-built Aircraft

Charter
Flying Clubs
Sales Demo
Industrial Aid
Helicopters
Transition Pilots
Banner Towing
Instruction - Rental
Sightseeing
*All Aviation Insurance Needs
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AVIATION INSURANCE
Page 3 of 9
Blais Aviation Insurance Services is considered one of

the world’s leading general aviation insurance brokers.
We provide top quality insurance for all areas of the
general aviation sector. We can meet the varying
insurance needs of all types of general aviation
operations, from private pilots and corporate jet
operators, to fixed based operators and owners and
operators of maintenance facilities and airfields.
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AVIATION INSURANCE

Page 4 of 9
Our objective is to provide the very best service

combined with good value to our clients. This begins
with the first request for a quote and is maintained
across every facet of our relationship, from simple
policy amendments to renewals and claims handling.
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AVIATION INSURANCE
Page 5 of 9
Blais Aviation Insurance Services is equipped to handle all

types of loss from propeller strikes to major incidents, from
hangar keepers' liability claims to third party property damage
claims.
Our experienced specialist underwriting team will provide
advice and tailor the policy to cater for each individual
policyholder's requirements. Together with our other forms of
support we are able to offer a level of service unsurpassed
anywhere in the aviation insurance market.
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AVIATION INSURANCE
Page 6 of 9
We cover every sector of general aviation including:
Corporate aircraft
Helicopters
Charter and business aircraft
Managed and fractional aircraft
Airports and heliports
Aircraft financial institutions
Component manufacturers
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AVIATION INSURANCE
Page 7 of 9
Blais Aviation Insurance Services provides automated

underwriting service for single-engine and specialty (kit)
recreational and non-commercial aircraft across the US. On-line
quotes are be available to select brokers and agents via the
Internet.
We offer substantial limits for physical damage, third party and
passenger liability coverage within our product range which
includes: hull all risks, hull war, liabilities to passengers and
third parties, cargo liability, aviation products liability, airports,
hangar keepers, premises, spares and also loss of use
insurance.
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AVIATION INSURANCE
Page 8 of 9
The light aircraft insurance solution
Blais Aviation Insurance Services operates a centralized dedicated

office in Dallas, Texas to meet the insurance needs of pleasure and
business aircraft across the US. The Pleasure and Business Aircraft
Operations Unit (PBO) takes pride in its customer friendly service,
which is based on the following simple objectives:
To simplify placement of your pleasure and business accounts

To deliver a product targeted at the buyer’s needs at a competitive price
To provide same day quotes and policies with automated systems.
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AVIATION INSURANCE

Page 9 of 9
The light aircraft insurance solution
The unit underwrites light aircraft of all types including:

Pleasure & business aircraft: owner-operated piston engine
powered airplanes used for pleasure (recreation) and private
business (non-commercial) purposes.
Specialty aircraft: including (kit) aircraft produced by Van’s,

Zenith/Zenair, Murphy, Skystar and Europa aircraft.
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AVIATION INSURANCE

Corporate Aircraft
Pilot: Philip Blais
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AVIATION INSURANCE

Corporate Aircraft
Pilot: Philip Blais
108
AVIATION INSURANCE

Corporate Aircraft
Pilot: Philip Blais
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AVIATION INSURANCE
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BLAIS AVIATION
INSURANCE SERVICES
A leading expert in the design, placement

and service of aviation related insurance products.
TOP 3 VALUES DELIVERED BY BLAIS
 Technical expertise on coverage, limits, and industry trends.
 Service through out policy term including but not limited to claims
support, client coverage updates and timely information pertaining to
Aviation Insurance.
 Senior level market relationships that enable Blais to quickly deliver

the most comprehensive and competitive programs available in the
market.
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BLAIS AVIATION
INSURANCE SERVICES
WHO WE ARE
Blais Aviation Insurance Services operates as a wholesale and retail
facility throughout the United States and specializes in aviation insurance.
Blais Aviation Insurance Services provides expert services for all general
aviation and specialty aircraft insurance requirements. Our staff of
professionals has broad experience in aviation insurance that is
supported by market relationships and resources to provide the best
insurance programs for our clients.
Blais Aviation Insurance Services is a wholly owned subsidiary of Blais

Group and operates as dba of Blais Excess & Surplus Agency of Texas,
Ltd.
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BLAIS AVIATION
INSURANCE SERVICES
General Aviation
Our general aviation department provides a wide variety of fixed wing and rotor wing
aircraft insurance products as detailed below.
Corporate Aviation / Industrial Aid
Aircraft owned / operated by companies maintaining an aircraft or fleet of aircraft
flown by professional flight crews. Coverages can include but not be limited to hull,
liability, War & Confiscation, expanded territories, and extensive coverage
enhancements.
Pleasure and Business aircraft
Aircraft ranging in size from small single engine to executive jet aircraft flown by the
owner/operator
Charter Service
Aircraft operating under the guidelines of the FAR 135 certificate that would include
passenger and cargo for hire. Other uses that would fall under this area would
include but not be limited to power line/pipeline patrol, aerial photography, aerial
advertising, predator control, fish spotting, and fire patrol.
Aircraft sales
Aircraft companies specializing in the sale of new and used aircraft
Helicopters
This would include both piston and turbine rotor wing for example R-22 and R-44.
Blais Aviation Insurance Services can provide coverage for a wide spectrum of uses
for helicopters which include but not be limited to industrial aid uses, pleasure and
business, commercial use including charter, instruction, sightseeing, movie filming,
Electronic news gathering (ENG), traffic patrol, fire patrol, control burning, animal
herding, predator control and frost patrol. 121
BLAIS AVIATION
INSURANCE SERVICES
Airport Liability
Blais Aviation Insurance Services can
provide a wide range of Airport coverages from
individuals who own or lease hanger space to
entire airports.
Blais Aviation Insurance Services also arranges

extensive coverage for Fixed Based Operations
including; Repair and Service, Parts (not installed),
Sale of New and Used Aircraft, Sale of Fuel & Oil,
Contractual, Independent Contractors and
Premises Medical. 122
BLAIS AVIATION
INSURANCE SERVICES
Special Risk
There area a number of unique class of aircraft with special risk requirements.
Our specialty underwriters offer a wealth of experience to assist our
producers in all of their specialty aircraft needs.
Warbirds
This would include military surplus aircraft both prop driven and jet aircraft, both
domestic and foreign, for example, PT17 basic trainers, P-51 Mustangs and B-
24s.
Homebuilts
Experimental aircraft that are derived from kits or plans. These could range from
a Vans RV-4 to a Glastar.
Antiques / Classics
Antiques are aircraft built between the years of 1903 – 1954. Classic aircraft
include aircraft built from 1955 - 1960.
Seaplanes
This would include amphibious aircraft and aircraft fitted with straight floats.
Ferry flights
Delivery of aircraft internationally or domestically.
Transition Pilots
Provides coverage for pilots who are transitioning from one type aircraft to
another.
Non-standard risks
This would include contracts where special uses and special aircraft are
required such as Air Racing, Air Show performers and Aerobatic competitions.
123
BLAIS AVIATION
INSURANCE SERVICES
A leading facility in the design, placement

and service of aviation related insurance products.
CONTACT
PHILIP BLAIS
972 818-4090
PHIL@BLAISEXCESS.COM
124
BLAIS AVIATION
INSURANCE SERVICES
125

Aviation Insurance

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AVIATION INSURANCE

Blais Aviation Insurance Services

Angel Flight Coverage Slide 8

Damage History Decreases Value Slide 9

Insure To The Value Of The Loan Slide 10 – 11

Reimbursement Or Rental Slide 12 - 14

Reimbursement From Your Own Slide 15

Hot Starts On Turbine and Jet Slide 23

Canadian Travel Slide 25

Mexico Travel Slide 26 – 27

Age vs. Price Slide 28

Approved Annual Training Slide 29

Why are contracts relating to my

What measures can I take to

Can pilots be sued? Slide 43

How is a pilot who is injured (or

Glossary Aviation Insurance Slide 72 – 77

Coverages Provided By Blais Slide 98 – 106

Closing Slide 119 – 125

Blais Aviation Insurance Services is considered a leading

If I fly an Angel Flight, will this void or cause a problem

If my aircraft is damaged in an accident, the hull value can be

In order for insurance to be valid and collectable, you must have an

But who has the insurable interest? If my aircraft were destroyed,

When the sales agreement is signed?

An aviation claims attorney answered the question by saying "it depends".

My attorney friend said, "As for insurable interest, this is another

Unfortunately, many aircraft change hands without a proper sales

Hot Starts On Turbine and Jet Engines

Hot starts are not covered under standard aviation hull

My windshield broke in flight at 28,000 feet. No bird

No. This would be considered to be wear and tear. If a

I am planning a pleasure trip to Canada . Do I have coverage

Yes. Canada is covered under the territorial limits of your standard

No. You do not need any special certification to enter Canada on a

I am planning a pleasure trip to Mexico . Do I have coverage under my aircraft

Yes. You do need special certification to enter Mexico on a non-commercial flight.

With the purpose of facilitating General Aviation Flights

It is important to obtain adequate protection when flying into Mexico by

Why Mexico Insurance? American Insurance is not recognized in Mexico.

AGE vs. PRICE

I am 67 years old. My current insurance company has insured

This is a judgment call. Obviously, we don't want to waste money.

I don't want to go to SimCom or FlightSafety International for annual training. It

I have a Cessna 172. Is annual recurrency training necessary to comply

How much liability coverage is enough?

1. Since there is no definitive method available to determine the appropriate

2. Number of passenger seats in the aircraft. Obviously, an aircraft with 14 passenger

4. Composition of passengers (Employee vs Guests). If the majority of

6. If you have an umbrella policy that covers the aviation

7. Generally speaking, since it is impossible to determine the

How do I determine the proper insured value for my aircraft?

What measures can I take to improve my aviation insurance program?

A. Develop, implement and maintain a documented flight safety program.

B. Adhere to an Pilot Operating Handbook.

What’s the deal with single-pilot operations?

Single-pilot operations are possible;

Should we carry war insurance or TRIA insurance or both?

The subject of war insurance and the expanded terrorism coverage

Who may use our airplane?

This question is often addressed in the context of cost reimbursement. That

Problems arise when XYZ Company, whose jet is down for

Absolutely. For example, in the aftermath of an accident, the policyholder is