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Excess Hull and Liability Policies
are designed to
provide
coverage after the primary (underlying) policy limits have
been exhausted. The coverage provided may not be as broad as the
primary (underlying) policy. An excess limit of aviation
hull or liability policy combined with the proper primary limit can
provide much higher
limits of protection for your company at competitive prices. This
coverage relies on the
underwriting already performed by the primary insurance carrier. It can
be purchased to "follow form" of a primary insurance policy. An excess
liability policy that "follows form" usually provides coverage
identical to that provided by the primary liability policy. Note:
Although many excess policies are called following-form, most contain
endorsements that limit coverage. A true following-form excess policy
would state that, except for the policy limits, all of the provisions
and conditions of the designated underlying primary policy are
incorporated into and adopted by the excess policy. The policy would
contain no other provisions.
One of the tricks of the trade that ZANETTE can
use to get the best deal possible for higher limits is called
"layering," either with your primary carrier or another company. In
this method of buying insurance, you would purchase several layers of
insurance which add up to the amount you feel you need. Each layer will
cost less, based on the theory that smaller losses occur more
frequently than larger losses. Insurance companies with the higher
layers
figure they simply have less chance of being called on in the event of
loss.
Additional Types of Excess Coverage Available:
Aviation Hull War & Allied Perils:
Coverage written to explicitly cover physical risks of loss or damage
to aircraft arising from war, hi-jacking, confiscation, any malicious
act, and other similar causes. It is usual that this type of cover is
excluded from the main hull coverage and has to be obtained separately.
Liability War and Allied Perils Coverage: In
excess of "normal" All-risks lliability policy, legal liability for
aircraft as a result of acts of
war or terrorism
Excess liability for fractional
aircraft
ownership: this coverage is excess over the underlying
limit of liability in the primary policy purchased by the fractional
operator of the aircraft. It offers the fractional owner the
flexibility to purchase whatever level of coverage deemed to be
necessary for the unique needs of that fractional owner.
Contingent liability
and hull converage for fractional aircraft
ownership: this becomes the primary coverage
for the fractional owner in the
event that no other coverage exists due to the effect of exclusionary
language in the policy purchased by the fractional operator.
Excess liability for managed aircraft: If
a company is part owner of an aircraft fleet, the company managing the
fleet will need to purchase the same type of insurance coverage for all
aircraft. A corporation invested in this arrangement will be named an
insured party and will pay for a portion of that cost. The
excess liability coverage is excess over the underlying
limit of liability in the primary policy purchased by the manager of
the shared aircraft. It offers the timeshared participant the
flexibility to purchase whatever level of coverage deemed to be
necessary for their unique needs.
Fill
out our Quick Quote form today with a little information
about
your business, aircraft, and flying operations and we’ll get you
competitive insurance quotes from our top-rated insurance partners and
offer you expert advice on liability limits that will protect you and
your business.
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