Helicopter Insurance Guide for First-Time Buyers

New to helicopter ownership and confused where to start? Buying a helicopter is a huge investment – both financially and personally and there’s nothing more important than securing your ride both on the ground and in the skies.

Whether you’re looking to rent or buy a helicopter for personal use or business, landing the right insurance policy elevates your experience immensely. While helicopter insurance jargon might seem perplexing, we’re here to break it down to the basics – the whys, the how’s and the ifs. From discovering why insurance matters to learning the best insurance practices, fly safe and fly smart with insurance that keeps you prepared with reliable protection.

Why Helicopter Insurance Matters?

Renting or buying a helicopter is no different than purchasing your dream car or a new home. As with any investment, helicopter owners too benefit from insurance policies to secure their ride, cover their losses, and maintain their peace of mind.

A helicopter insurance is not just another monetary policy designed for your helicopter but a guaranteed safety net that provides comprehensive financial protection from numerous possible risks and scenarios for you and your aircraft’s security. While legally the United States does not mandate having helicopter insurance, a large percentage of buyers choose to invest in insurance policies for the best flying experience.

If you’re stuck asking yourself whether you truly need helicopter insurance, the right answer is yes. Be it an unfortunate accident that results in severe damage to the aircraft, liability coverage for third-party travelers, or a medical emergency in-flight, your helicopter insurance securely flies you through it all.

Types of Helicopter Insurance Coverage

Just like choosing the right helicopter for purchase or renting is essential, it is equally important to select an insurance policy that complements your helicopter and your flying needs. While different companies offer different insurance policies, the right one can elevate your journey to helicopter ownership significantly.

Hull Insurance

Hull insurance safeguards the physical structure and onboard equipment of your helicopter. It covers damage or total loss triggered by –

• Fire or explosions
• Theft or vandalism
• Crashes or collisions (in-flight or on-ground)
• Electrical or mechanical failures (in some cases)

There are usually two types –

• Ground Risk Hull Insurance – covers damage as or when the aircraft is not in flight.
• In-Flight Hull Insurance – Provides unmatched protection while the aircraft is airborne.

Annual premiums usually range from 5% to 10% of the helicopter’s current market value.

Liability Insurance

Liability insurance provides third-party coverage especially if your helicopter causes –

• Bodily injury or death
• Property damage (such as, buildings, vehicles, livestock, etc.)

It’s important for both commercial and private owners – particularly if you’re operating around populated airports or areas. This policy covers legal expenses as well as compensation claims up to the agreed limits.

Example: A $1 million policy may include a passenger sublimit of around $100,000 per person and up to $900,000 for other third-party liabilities.

Passenger Liability Insurance

Passenger liability is separate from general liability and particularly covers fatalities, injuries, or legal claims from passengers on board during an incident. Coverage is typically offered –

• Per-seat basis
• Or as CSL (Combined Single Limit) for all passengers onboard

Passenger liability makes sure that you’re not exposed to personal lawsuits or out-of-pocket settlements.

Medical Payments Coverage

Medical payments coverage reimburses medical expenses for –

• Pilots
• Crew members
• Onboard passengers

Example: Covers ambulance rides, emergency services, or short-term hospital stays.

Loss of Use Insurance

If your helicopter is grounded because of damage or maintenance after an insured event, loss of use insurance compensates you for –

• Lost charter income
• Missed contracts
• Business interruption

You can apply this coverage towards rental replacements when your aircraft is repaired.

War Risk Coverage

Optional but valuable in volatile areas, war risk coverage safeguards against damage from –

• Terrorism or sabotage
• War or civil unrest
• Unlawful seizure or hijacking
• Strikes or labor disturbances

What’s Included in the Cost of Helicopter Insurance?

While securing helicopter insurance is essential for security, it is a big financial investment. Familiarizing yourself with the know-hows of a helicopter insurance cost is important to make a confident choice. Let’s dive into all the factors that impact your insurance premium.

• Your aircraft type and its market valuation are one of the determining costs of your helicopter insurance that goes towards the policy coverage.
• How you use the helicopter: The reasons you use your helicopters, be it for private rides, commercial rides, or aerial work, can impact the premium you pay towards insurance coverage.
• The experience of your pilot and their degree of training can lower or increase your insurance cost.
• Your flying location and typical flying conditions affect how much you pay for insurance premiums.

Tips and Tricks to Get the Best Helicopter Insurance Deal

• Invest in well-experienced and highly trained pilots to get a better helicopter insurance deal at lower costs.
• Keep your helicopters in well-maintained condition to avoid any motor failure in the air or on the ground.
• Purchase helicopter insurance deals from experienced brokers like Schweizer.
• Install high-grade and advanced safety equipment like terrain awareness and warning systems, autopilots, flight data monitoring, GPS tracking and night vision imaging systems to show risk reduction commitments to insurance providers.
• Identify your unique helicopter insurance needs based on the purpose of usage, flying conditions, and other variables to choose the right deal.

Common Mistakes First Time Buyers Make

Being a new helicopter owner comes with a lot of confusion. With so much information available and so many terms, it gets difficult to make the right choice, especially for helicopter insurance policies. Stay ahead of the crowd by avoiding these common mistakes that first-time buyers tend to make.

• Don’t underinsure your helicopter and risk missing out on full coverage in case of any accidents or damage.
• Carefully read through all exclusions that your insurance policy mentions so you can either add other insurances or choose a better policy.
• Avoid overlooking pilot experience, minimum pilot hours, or specific pilot training that your insurer provider may need. Choosing a well-trained pilot not only ensures more safety but also lowers the premium towards your insurance policy.
• Delaying coverage until post-purchase and skipping pre-purchase inspections can adversely affect your helicopter insurance experience.

Fly Safe and Smart with Helicopter Insurance

If you think the sky is your limit, think again. Secure a helicopter insurance policy that makes flying safe, seamless, and peaceful, both in-air and on-ground. As a new helicopter owner, your insurance is not only a policy but also a safety net that guarantees that your thrill of flying is covered adequately.

Still confused? Need help choosing the right helicopter insurance? Contact our team at Schweizer for the best advice and best deals.

FAQs

Is hull insurance better than liability insurance?

The purpose of investing in hull insurance is completely different from liability insurance. A hull insurance is dedicated to covering all physical damages that your helicopter may incur, while a liability insurance guarantees coverage to all third-party or passenger claims in an accident. Ideally it is recommended to get both hull insurance and liability insurance, especially if you use your helicopter for commercial purposes.

Can I adjust or update my insurance policy later?

Yes, absolutely! With time your helicopter ages, and so do its usage and market valuation. In such circumstances, your insurance too gets updated and adjusted to provide continued and adequate coverage that meets your needs. Get in touch with a consultant to learn how to update your policy.

How much coverage do I need?

The amount of coverage your helicopter needs varies greatly depending on both the insurance type and your helicopter needs. For hull coverage, your helicopter and its equipment’s market valuation are taken into consideration as well as the extent of damage. For liability coverage, it depends on the usage and assumed valuation required in case of any accident. Avoid being underinsured and get in touch with an expert for the best advice.