There are few things in life as luxurious as owning your own plane and 2013 saw sales of private jets in the UK soar to more than any other European country even though families the continent over were tightening their belts.
Following the recession demand has increased nearly 50%, Beechcraft delivered 232 aircraft to UK customers from 2007 to 2011, more than any other European country.
The increase of Russian oligarch and influx of Middle Eastern business people settling in London has a lot to do with the boom and Britain now has Europe’s second largest fleet of business planes.
President of Beechcraft International, Shawn Vick, said demand was driven by London’s position as a financial hub and the country’s ‘culture of savvy entrepreneurial people’, adding: ‘These aircraft give them rapid access to new markets.’
He said that Europe ‘remains a big market for business aviation and it continues to grow’.
So as this trend for owning jets, helicopters and other light aircraft continues to grow, the UK insurance market has to adapt to the growing demand and owners need to be aware of the types of cover available to them.
Types of cover:
- Light Aircraft Insurance
- Glider Insurance
- Glider Pilot Life Cover
- Pilot Personal Accident
- Microlight Insurance
- Gyrocopter Insurance
- Flying Clubs
- Helicopter Insurance
- Unmanned Aerial Vehicles (UAV’s)
Like a car there are two main factors to consider when insuring a private aircraft, the hull and liability.
Hull – an insurer will need to know the value of the body of the plane, it is also worthwhile taking into consideration how plush your interior is and whether that adds a lot to the aircraft’s value.
Liability – if the plane crashes what is the cost of the damage it could cause
You might also want to think about Employers Liability if you have staff on board.
You will also need to have details about when the aircraft was last serviced, how many miles it flies and where it flies.
While most policies will cover for things like hull physical damage, passenger and third party liabilities you can also get cover for excess third party terrorism liability and hull war physical damage as well as loss of licence.
The aviation insurance market has always differed from most other insurance markets in that both the premium base and the customer base are very narrow with just a small number of insureds, the underlying principal of which being that the premiums of the many pay for the losses of the few. If you are lucky enough to be part of that elite group that has the luxury of private travel, make sure you speak to a broker to ensure you have the best possible personal aviation insurance for your asset.