They say that it is better to be safe than sorry – especially when you are talking about several million dollars. When it comes to insuring your aircraft or a boat, there is no question that it is a must. Much like a car insurance, aircraft insurance is there to cover you no matter what. But just what does insurance do? How does it work? Where is your money really going?
When you have an insurance policy, it serves as a contract. Your end of the deal requires you to pay the agreed upon premiums monthly or annually, and pay the deductibles if needed. The insurance company has the responsibility to insure you for any damages that occur during the policy term. Those damages could include physical damage to the aircraft or boat, damage to property caused by the aircraft or boat, and even injuries to persons involved in the accident. The insurance company may pay to reimburse you, but that doesn’t mean that’s the end of it. Sometimes, someone or something was at fault and the insurance company will investigate and has the right to take payments from whoever is responsible for the loss.
For an example, let’s say that you bought a toolbox. And let’s say that while you were moving the toolbox that one of the side panels falls off and cuts your leg open. Your medical insurance company will pay for your medical expenses, but they may ask to have pictures of the toolbox or even have you send them the actual toolbox. Your medical insurance company will then contact the manufacturer of the toolbox to have them reimburse the insurance company for the medical expenses. The manufacturer of the toolbox may then reach out to the manufacturer of the metal side panels to have them reimburse the toolbox manufacturer. The point is that insurance companies have the right and will exercise that right to request reimbursement from a third party if the accident is their fault.
In terms of aviation and boating, let’s say you were landing your plane when the axle broke off, or docking your boat when the throttle gets stuck – either way, you crashed your toy. Let’s say your crash caused injuries and damages to other planes or boats, and also damage to the property. Obviously the accident was no fault of your own, but without insurance, you would have had to pay for all the damages. It would take millions of your own dollars to cover this sort of accident, but since it was not your fault, your insurance would cover it. They would then petition the manufacturers to figure out what was the actual problem was that caused the accident. Whoever or whatever is found liable would then reimburse your insurance company.
If you don’t already have insurance and you are looking aircraft insurance or marine insurance that will give you the coverage you need and service you deserve, look no further than Aircraft and Marine Assurance.