Airplane Insurance Claim Process

First the insurance carrier typically assigns a representative to determine what coverage may apply under the policy.

Though every claim is unique, the process often includes the following steps:

1. Claim Reporting - The policyholder notifies the insurance company or their insurance broker of the potential claim. This will often include basic information regarding the details of the event; as the first step in the process, it’s often crucial that this is done accurately and promptly.
2. Initial Claim Review - The insurance carrier reviews the details of the event, as well as information reported by the client. The insurance provider may request additional documentation, including, but not limited to, photographs, maintenance records, pilot information, repair estimates, invoices, and logbook entries relevant to the claim.
3. Investigation and Evaluation - Depending on the nature of the situation, the insurance provider may conduct further investigation into the nuances of the event. In some cases, an adjuster, aviation specialist, or other representative may inspect the aircraft or evaluate repair estimates.
4. Coverage Determination - Accounting for all available information, as well as the unique coverage of the individual’s policy, the insurance provider will next likely determine what coverage applies. If needed, the provider will also determine if there is more information necessary to process the claim.
5. Repair, Settlement, or Resolution - Once the claim evaluation is complete, the insurance provider works with the policyholder and any relevant parties to resolve the claim. Depending on the specific event and individual policy, this may involve aircraft repairs, reimbursement of covered expenses, payment for covered damages, or other claim-related solutions or company responses.

Aircraft damage is typically evaluated by the client, insurance company, and the associated professionals. A team of specialists will usually determine the extent of the damage. The selection of a repair facility can vary based on factors like the circumstances of the claim, the aircraft owner, the repair provider, and the insurance carrier involved.

Aircraft damage is evaluated using information accumulated during the claims process. Factors insurance providers typically account for are:

• Photographs of the aircraft and any damage
• Maintenance and logbook records
• Repair estimates
• Inspection reports
• Review by claims representatives, adjusters, or aviation specialists

Depending on the circumstances of the accident, replacement parts may come from a variety of approved sources.

Aircraft repairs may involve:

• Original equipment manufacturer (OEM) parts
• Approved replacement parts
• Overhauled or reconditioned components
• Other approved parts that meet applicable requirements

Due to the varying nature of each policy, the damage evaluation process will look different for each individual case. All insurance policies are different.

If an aircraft is damaged away from its home airport or normal operating location, the insurance claim process typically begins the same as any other–by reporting the loss promptly to your insurance provider. Depending on the policy and the circumstances of the accident, expenses like recovery, transportation, inspection, and storage of the aircraft may be covered. It’s important that policyholders review the specific provisions of their policies to determine what may or may not be covered as all policies are different.

The expense of recovering an aircraft may be included in an insurance policy. In some cases, the aircraft stays in the location in which the accident occurred. The aircraft may also be transported to another location during the repairs, storage, and/or recovery process, depending on the nature of the damage. The procedures followed may vary greatly depending on the damage, airport requirements, regulatory considerations, and terms of the insurance policy. In some cases the expense of recovering an aircraft would not be covered depending on the policy.

Because every insurance policy is different, it is crucial that insureds contact their insurance company or claims representative following a loss. Insurance company adjusters are prepared to assist policyholders in navigating these complex policy nuances.

Because each insurance policy is different, the process will vary on a case-by-case basis. Aircraft owners or salvage buyers should contact the insurance company or claims representative for information regarding salvaged parts or salvaged aircraft. 

An aircraft insurance claim may affect future insurance premiums, policy terms, or the availability of coverage, but the impact of the claim may vary significantly based upon the circumstance of the claim. Factors that may determine the impact on insurance rates or the ability to obtain coverage are the type and severity of the claim, claims history, pilot experience, aircraft type, and other risk-related information. 

Insurance companies often utilize a broad context to determine a policyholder’s risk profile. While insurance companies may take into account a policyholder’s claims history, a single claim does not necessarily mean that a policyholder’s insurance rates and ability to obtain coverage will be greatly impacted. Because each policy varies between aircraft owners, insurance companies take many factors into account.

There is no definitive yes or no answer that applies to all cases due to the difference among individual policies and individual situations. Policyholders should review their policy and contact their aviation insurance broker or insurance company to better understand their coverage options as needed. 

Some factors that may influence future insurance rates or coverage eligibility include: 

• The nature and severity of the loss
• The frequency of prior claims
• Pilot qualifications and experience
• Aircraft make, model, and intended use
• Changes in market conditions

Policyholders who have questions about how a claim might affect future insurance rates or eligibility to obtain coverage should discuss with their insurance broker or insurance company. It is important to work with an aviation insurance specialist to help guide policyholders through the processes that relate to current and future insurance policies.