Helicopter Insurance Policy Information
Helicopter Insurance. Whether you use a helicopter to escort clients on personal business trips, sightseeing tours, or to perform search and rescue missions, while these versatile machines are certainly beneficial, they also pose certain risks.
From injuries to accidents, and from damage while landing or from storms, there are a number of risks that you can be exposed to as a helicopter owner and operator. To protect yourself from those risks, making sure that you are properly insured is an absolute must.
Helicopter owners rent or charter helicopters for rides, lessons, and tours. They may offer aerial services for news and weather reports, aerial photography, emergency services in remote, rural, or hard-to-reach areas, emergency services during natural disasters, medical emergency transport, rescue services, police services, traffic control services, lifting services for construction operations, and military operations.
All pilots must have Federal Aviation Administration (FAA) licensing for the type of aircraft being flown. Helicopters vibrate during operation. Without ongoing maintenance, critical parts can come loose. Strict compliance with FAA standards for the type, maintenance, and use of the aircraft is critical.
Helicopter drones, or unmanned aerial vehicles (UAVs), may be used in some commercial processes where a small craft is needed.
Why is helicopter insurance so important? What does this customized insurance cover? Read on to find out the answers to these questions and more.
Helicopter insurance protects owners and pilots of helicopters from lawsuits with rates as low as $87/mo. Get a fast quote and your certificate of insurance now.
Below are some answers to commonly asked helicopter owner and pilot insurance questions:
- What Is Helicopter Insurance?
- How Much Does Helicopter Insurance Cost?
- Why Do Helicopter Owners And Pilots Need Insurance?
- What Type Of Insurance Do Helicopter Owners And Pilots Need?
- What Does Helicopter Insurance Cover & Pay For?
What Is Helicopter Insurance?
Helicopter insurance is a type of insurance coverage specifically designed for owners and operators of helicopters. This insurance covers various risks related to helicopter ownership and operation, including:
Physical damage to the helicopter, including collisions and other types of accidents- Liability for third-party damage or injury resulting from the operation of the helicopter
- Loss or damage to the helicopter's equipment and accessories
- Loss or damage to the helicopter during transportation
- Loss or damage to the helicopter due to theft or hijacking
- Loss or damage to the helicopter due to natural disasters such as storms or earthquakes
- Loss of revenue due to flight cancellations or delays caused by a covered loss.
The coverage and terms of a helicopter insurance policy can vary widely depending on the individual circumstances and needs of the policyholder. It is important to carefully review and understand the terms of a helicopter insurance policy before purchasing it.
How Much Does Helicopter Insurance Cost?
The average price of a standard $1,000,000/$2,000,000 General Liability Insurance policy for small helicopter operations ranges from $87 to $109 per month based on location, pilot experience, claims history and more.
Why Do Helicopter Owners And Pilots Need Insurance?
While a helicopter can be used in a myriad of ways and can be very reliable, it can also be dangerous; not to mention the fact that there are a number of things that can go wrong with a helicopter - from sustaining damage while landing to being damaged by vandals.
As the owner and operator of a helicopter, you are liable for anything that does go wrong. For instance, if you run sightseeing tours and one of your clients suffers an injury while boarding your helicopter, you could he held responsible for any medical care that the individual requires and any lawsuits that may be filed against you.
The same is true if your helicopter were to suffer damage in a storm or an act of vandalism or an accident; you would be responsible for any of the repairs that the machine would require.
As you can imagine, the costs that are associated with lawsuits, medical care, and repairs can be exorbitant. That's why investing in a comprehensive helicopter insurancee policy is so important.
If something were to happen to your helicopter, instead of paying the related expenses out of your own pocket, your insurer would cover those expenses for you. To summarize, helicopter insurance can help you avoid serious financial losses.
Plus, properly insuring a helicopter is legally required. If you aren't insured, you could be looking at stiff fines, possible jail time, and your helicopter may even be revoked.
What Type Of Insurance Do Helicopter Owners And Pilots Need?
Helicopter insurance, as the name suggests, is specially designed to cover the risks that are associated with owning and operating a helicopter.
For example, if you own a helicopter and rent it out to others, if you own a helicopter and use it for fun, if you use your helicopter to perform search and rescue missions, or if you use it to take clients on personal business or sightseeing trips, for example, you would need to invest in a helicopter insurance policy.
As mentioned, this type of policy provides comprehensive coverage for the variety of risks that are associated with owning and operating a helicopter. Examples of the different types of coverage that a helicopter insurance policy provides includes:
- General Liability: This insurance provides coverage for any third-party personal injury or property damage claims that may be made against you. For instance, if you were to take clients out for sightseeing tours and they filed a lawsuit against you stating that you damaged their personal property or that they suffered an injury as a result of your helicopter, this part of your policy would help to cover any related expenses, including legal fees and compensation that you may be required to pay out.
- Hull Insurance: Also known as known as property damage insurance for planes and helicopters, this part of your helicopter insurance policy will cover any damages that your flying machine may experience while grounded or in flight. Examples of damages that it can cover include vandalism, theft, and damage from weather-related events, as well as damages or total losses related to an accident.
- Passenger Liability: Passenger liability is needed if you transport passengers for any reason.
A well-built helicopter insurance policy will provide you with the coverage options that you need to protect you from the numerous risks that are associated with owning and operating helicopters.
Helicopter Owners' Risks & Exposures
Aircraft hull exposure covers the helicopter and its equipment. Pilot error, including failure to consider weather conditions, can result in a costly accident. Pilots must adhere to all FAA regulations, including the need for ongoing physical examinations.
All helicopters must be maintained according to manufacturers' specifications, and records of such maintenance kept in a central location.
Aircraft liability exposure covers injuries to passengers and damage to property of others. A helicopter used to place heavy items, such as an air conditioning unit on top of a building, can drop its load, damaging not only the unit but also the building.
In an emergency situation, timely response is critical. Pilots must meet all FAA regulations, including current licensing, for the helicopter. They must participate in regular training activities to maintain skills.
Helicopters must be maintained and records kept of the maintenance. Crash landings can result in severe injury or death to passengers.
Premises liability exposure is generally limited to waiting areas for customers boarding the helicopter. To prevent trips, slips, and falls, all areas accessible to customers should be well maintained with floor covering in good condition.
Customers should not be permitted near any hazardous activity such as fueling. Observers should be kept away from the helicopter while it is being loaded and released.
Workers compensation exposure is significant. Fire and explosion are a constant concern in a fueling area and from repair operations that include welding or painting. Repair operations involve significant chances for injury due to slips and falls, burns, falling pieces, strains and sprains on backs from lifting and working in awkward positions.
Safety equipment should be required. Propellers and other moving parts can injure an employee during operation. All controls must be in place and carefully monitored. Helicopter crash exposure may be high if used in remote rescue or emergency operations.
Property exposure is generally limited to that of an office. Ignition sources include heating and air conditioning systems and electrical wiring. Hangars used for storing helicopters will increase the exposures, particularly if aircraft are serviced and fueled on premises.
Smoking should be prohibited. Helicopters may be targets for theft or vandalism. The premises should be secure from unauthorized access by others.
Crime exposure is very limited unless the helicopter is used for commercial purposes. If there is commercial use, exposures include employee dishonesty and money and securities. References and background checks should be conducted on all employees.
Monetary transactions must be monitored and audited on a regular basis to prevent employee theft. Money-handling responsibilities should be separated, with no employee handling both receivables and disbursements.
Inland marine exposure includes accounts receivable if there are billings, computers, cameras or other equipment carried on helicopters, and valuable papers and records for customers', regulatory, and suppliers' information.
Business auto exposure is generally limited to hired and non-owned automobile exposure if employees use their own vehicles to run errands for the helicopter owner. If there are owned vehicles, all drivers must have appropriate licenses and acceptable MVRs. Vehicles must be well maintained with records kept in a central location.
What Does Helicopter Insurance Cover & Pay For?
Helicopter operators may be sued for a variety of reasons, including:
Negligence: If a helicopter operator fails to exercise reasonable care in operating their aircraft and causes harm to a person or property, they may be sued for negligence. Helicopter operators can purchase liability insurance, which will provide coverage in the event of a negligence claim. The insurance company will pay for legal fees and any damages awarded to the plaintiff, up to the policy limit.
Product liability: If a helicopter or one of its parts malfunctions and causes harm, the manufacturer or operator may be sued for product liability. Helicopter operators can purchase product liability insurance, which will provide coverage in the event of a product liability claim. The insurance company will pay for legal fees and any damages awarded to the plaintiff, up to the policy limit.
Contract disputes: If a contract between a helicopter operator and a customer is breached, the customer may sue the operator for damages. Helicopter operators can purchase contract liability insurance, which will provide coverage in the event of a contract dispute. The insurance company will pay for legal fees and any damages awarded to the plaintiff, up to the policy limit.
Employment disputes: If an employee of a helicopter operator is injured or mistreated on the job, they may sue the operator for damages. Helicopter operators can purchase employment practices liability insurance, which will provide coverage in the event of an employment dispute. The insurance company will pay for legal fees and any damages awarded to the plaintiff, up to the policy limit.
In summary, helicopter operators can protect themselves from lawsuits by purchasing various types of insurance coverage. These policies will provide financial protection in the event of a claim, allowing operators to focus on running their business rather than worrying about legal fees and damages.
Commercial Insurance And Business Industry Classification
- SIC CODE: 4512 Air Transportation, Scheduled, 4513 Air Courier Services, 4522 Air Transportation, Nonscheduled
- NAICS CODE: 481111 Scheduled Passenger Air Transportation, 481112 Scheduled Freight Air Transportation, 481211 Nonscheduled Chartered Passenger Air Transportation, 481212 Nonscheduled Chartered Freight Air Transportation, 481219 Other nonscheduled Air Transportation, 487990 Scenic and Sightseeing Transportation, Other
- Suggested ISO General Liability Code(s):
- Suggested Workers Compensation Code(s): 7405 Aviation - Air Carrier - Scheduled, Commuter, or Supplemental - Flying Crew, 7421 Aviation - Transportation of Personnel in Conduct of Employer's Business - Flying Crew, 7425 Aviation - Helicopters - Flying Crew, 7403 Aviation - All Other Employees & Drivers, 7431 Aviation - Air Charter or Air Taxi - Flying Crew
Description for 4512: Air Transportation, Scheduled
Division E: Transportation, Communications, Electric, Gas, And Sanitary Services | Major Group 45: Transportation By Air | Industry Group 451: Air Transportation, Scheduled, And Air Courier
4512 Air Transportation, Scheduled: Establishments primarily engaged in furnishing air transportation over regular routes and on regular schedules. This industry includes Alaskan carriers operating over regular or irregular routes.
- Air cargo carriers, scheduled
- Air passenger carriers, scheduled
Description for 4513: Air Courier Services
Division E: Transportation, Communications, Electric, Gas, And Sanitary Services | Major Group 45: Transportation By Air | Industry Group 451: Air Transportation, Scheduled, And Air Courier
4513 Air Courier Services: Establishments primarily engaged in furnishing air delivery of individually addressed letters, parcels, and packages (generally under 100 pounds), except by the U.S. Postal Service. While these establishments deliver letters, parcels, and packages by air, the initial pick-up and the final delivery are often made by other modes of transportation, such as by truck, bicycle, or motorcycle. Separate establishments of air courier companies engaged in providing pick-up and delivery only; "drop-off points"; or distribution centers are all classified in this industry. Establishments of the U.S. Postal Service are classified in Industry 4311; and establishments furnishing delivery of individually addressed letters, parcels, or packages (generally under 100 pounds) other than by air are classified in Industry 4215. Establishments primarily engaged in undertaking the transportation of goods from shippers to receivers for charges covering the entire transportation, but making use of other transportation establishments to effect the entire delivery, are classified in Industry 4731.
- Courier services, air
- Letter delivery, private: air
- Package delivery, private: air
- Parcel delivery, private: air
Description for 4522: Air Transportation, Nonscheduled
Division E: Transportation, Communications, Electric, Gas, And Sanitary Services | Major Group 45: Transportation By Air | Industry Group 452: Air Transportation, Nonscheduled
4522 Air Transportation, Nonscheduled: Establishments primarily engaged in furnishing nonscheduled air transportation. Also included in this industry are establishments primarily engaged in furnishing airplane sight-seeing services, air taxi services and helicopter passenger transportation services to, from, or between local airports, whether or not scheduled.
- Air cargo carriers, nonscheduled
- Air passenger carriers, nonscheduled
- Air taxi services
- Ambulance services, air
- Flying charter services
- Helicopter carriers
Helicopter Insurance - The Bottom Line
To find out how you can build a helicopter insurance policy that will be customized to meet your specific needs to ensure that you are fully covered from any unexpected events that may arise, consult with a reputable agent who is experienced in commercial aviation insurance.
Additional Resources For Aviation Insurance
Learn about aircraft and aviation liability insurance - a specialized form insurance that provides coverage for hull losses as well as liability for passenger injuries, environmental damage and third-party damage caused by aircraft accidents.
- Insurance Aviation Terms Glossary
- Aerial Applicators
- Airports
- Aviation
- Flight Schools
- Helicopter
- Hot Air Balloon
- Unmanned Aerial Vehicles (UAV) Drone
- Specialty Aircraft And Airports
The aviation industry requires insurance for a number of reasons
Firstly, it is a highly regulated industry with strict safety standards that must be met. Accidents or incidents can occur despite these measures, and insurance helps to cover any resulting damages or liability.
Secondly, the cost of repairing or replacing aircraft and associated equipment can be extremely high. Insurance helps to mitigate these costs in the event of an accident or damage.
Thirdly, the aviation industry operates on a global scale, with aircraft and personnel often crossing international borders. Insurance helps to protect against any legal issues that may arise in different countries.
Finally, the aviation industry is constantly evolving and facing new risks and challenges. Insurance helps to provide a safety net in the face of these unknown risks.
In summary, insurance is an essential component of the aviation industry as it helps to cover potential damages, liability, and new risks. It allows the industry to operate smoothly and safely, ensuring the safety and well-being of both passengers and crew.
Minimum recommended coverage: Building, Business Personal Property, Business Income and Extra Expense, Employee Dishonesty, Money and Securities, Accounts Receivable, Communication Equipment Floater, Computers, Contractors’ Equipment, Valuable Papers and Records, General Liability, Employee Benefits, Environmental Impairment, Umbrella, Hired and Non-Owned Auto, Workers Compensation, Aircraft Hull, Aircraft Liability & Hangarkeepers Legal Liability.
Other coverages to consider: Earthquake, Equipment Breakdown, Flood, Cyber Liability, Employment-related Practices, Underground Storage Tank, Business Automobile Liability and Physical Damage and Stop Gap Liability.
