Flight or Fight?

by Jeff Rasmussen, President
Aero Insurance, Inc.

Are you covered by your insurance company if you fly your airplane when it is out of annual or something is broken and inoperable? Have you found that low-time, loaded dream airplane that has been sitting in a hangar for 3 years or more and is out of annual?

Recently we had clients ask these questions. Are they covered if they fly their aircraft? Well, that depends. It depends on what the language of your insurance policy says, as well as if it meets the definition of airworthy according to the Federal Aviation Regulations (FARs).

All insurance companies expect the aircraft that they are insuring to be airworthy and that the pilot operating it to be current. They ensure this by policy conditions and exclusions in the policy, such as a named pilot schedule and policy definitions. Some aviation insurance companies automatically cover situations like this by removing the exclusion language that the aircraft must have a standard airworthiness certificate. Other carriers will only provide coverage if a special flight permit (i.e. ferry permit) has been obtained by the owner from the FAA.

While most of the language is similar in the various aviation insurance policies, each one is unique and has differences. The best thing to do if you are in doubt is to call your agent and get clarification – in writing – of what you need to do to make sure that you are protected. Often it is merely a note in the file, but it can include an additional premium charge from some companies. For a new aircraft acquisition, the underwriter may or may not be willing to insure the aircraft, depending on the situation.

Is the airplane airworthy? The definition from your insurance company may differ from that of the Federal Aviation Administration (FAA).

What does the Federal Aviation Regulations (FARs) say about airworthiness? Part 91 describes non-commercial airplane requirements, and Part 91.205 describes what is needed for operable equipment based on the aircraft category and whether VFR/IFR. There may be additional equipment requirements that are noted in the “limitations” section of the pilot’s operating handbook (POH) for the make and model of airplane, that needs to be installed and working for the airplane to be considered “airworthy.”

What if the aircraft is not airworthy or out of annual?

The FAA may issue a Special Flight Permit, commonly called a “ferry permit,” for an aircraft that does not meet airworthiness requirements, but is capable of safe flight.

From the FAA’s website, “A special flight permit may be issued for an aircraft that may not currently meet applicable airworthiness requirements, but is capable of safe flight, for the following purposes:

• Flying aircraft to a point for repairs, alterations, maintenance, or storage (i.e. ferrying an aircraft from point A to point B).

• Delivering new aircraft to the base of a purchaser or to a storage point.

• Conducting production flight tests.

• Evacuating an aircraft from impending danger.

• Conducting customer demonstration flights in new production aircraft that have passed or completed production flight tests.

• Excess weight operations.

The special flight permit does not authorize flight over a country other than the United States without permission of that country.”

Your aircraft technician can assist with obtaining a special flight permit from the local FAA Flight Standards District Office (FSDO). It typically will contain particular details about the ferry flight, such as route, whether it will be flown VFR or IFR, and the name of the pilot in command. The underwriter will often want to see a copy of the special flight permit to approve the flight as covered.

In conclusion, you can usually obtain permission for a flight by working with your insurance company, but always check first to make sure you are covered and legal to fly.

EDITOR’S NOTE: Jeff Rasmussen is president of Aero Insurance, Inc. with headquarters in Madison, Wisconsin. Email questions to jrasmussen@aero-ins.com, or call him at 1-800-210-8242 (www.aero-ins.com).

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