St. Louis, Mo.-based Travers and Associates is now offering pay-by-the-hour insurance coverage as a cost saving alternative to traditional commercial aviation insurance packages.
Travers and Associates specializes in insurance products for the aviation industry. It noted that with flying hours down in many parts of the country, commercial operators have less cash flow to pay the traditional premiums associated with operating flight schools, charter operations, flying clubs, rental operations and more. The fixed monthly premiums can make months of below-average flying hours very difficult.
Travers and Associates’ new offering allows its customers to only pay for insurance when they actually need it, by the flying hour. The program is offered in conjunction with Phoenix Aviation Managers.
Customers pay an hourly rate for each hour the airplane flies (based on the Hobbs Meter). With only a nominal fixed monthly base rate, this program allows the operators to maintain cash flow and have their insurance costs directly correspond to revenue. Additionally, there is a cap in place that makes sure customers only pay as much as they would have paid had they purchased the annual premium, no matter how many hours the airplane flies.
This program works through use of an online scheduling and aviation information management system. All flight hours are logged through an easy-to-use system that then e-mails automatically generated reports on a monthly basis to Travers and Associates for billing purposes.
Source: Travers and Associates, http://www.traversaviation.com/
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