SterlingRisk Insurance, a privately-owned brokerage based in Woodbury, N.Y., has launched aircraft business income coverage designed for both the aircraft owner and operator to protect their expected charter revenue from loss due to unscheduled maintenance and cancelled flights.
The product allows an aircraft owner to purchase a limit of indemnity that will reimburse for any depreciated loss. The limits of indemnity can be tailored to the hourly charter or lease rate between the owner and operator, allowing the product to fit the business model of most owner-operator agreements. The program can also be expanded to offer “aircraft adjusted loss” coverage for the aircraft owner.
Aircraft damage claims are often subject to depreciation: a reduction in a claim settlement due to age or use of a part that has to be replaced, and certain parts on an aircraft and rotorcraft do have a life expectancy. The insurance company will take this into consideration before settling the claim.
Additionally, SterlingRisk Aviation Division recently partnered with Flight Support Group (FSG) of Port Orange, Fla., for distribution of its insurance products. The move is expected to help SterlingRisk to introduce its products to the end user in a shorter period of time, the company said in a statement.
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