Insurance and liability

[first taff]

we are currently looking around for the best insurance quote/ cover for our aircraft , however one insurer suggests that we do not have enought 3rd party cover at "four million" which is what we currently have )and it should be "five million" , another suggests that the minimum cover "three point five million" is enough .

what do my fellow prune's recomend ?? or advise please
thanks

[Jodelman]

One answer is "as much as you can afford" but you need the indemnity limit to apply to passengers as well as third parties.

Whilst motoring accidents are not entirely compatable with aircraft accidents, this case shows that court awards over £10m are possible.

[spittingimage]

You might think that an accident resulting in a claim for £5M would take some arranging but this is far from the case as the link provided above shows, albeit a motoring one. Bear in mind also that, in the case that a £10M payout results and you only have £5M cover then you are 50% underinsured and the insurers may therefore pay out only a commensurate 50% of their maximum liability under the policy, ie a far from adequate £2.5M. You and your colleagues could well be approached for the remaining £7.5M ! How much is your house worth ?

Irrespective of the above potential woe, if you are super-rich or, alternatively, a man of straw, you can probably sleep easy at night regardless. But that leaves most of us to fret a bit, I suppose. Suggest you ask your insurer how much extra per £1M of liabilities .. and then get a bold group decision on the final figure !

Caveat aviator (but it'll probably never happen).

SI

[Jodelman]

Bear in mind also that, in the case that a £10M payout results and you only have £5M cover then you are 50% underinsured and the insurers may therefore pay out only a commensurate 50% of their maximum liability under the policy,

Not the case with a liability policy. The insurers would pay out up to the limit of indemnity.