When an aircraft insurance policy is issued, it represents a contract between you and your insurance company. The policy contains terms and conditions with which you, the insured, agree to comply. In exchange, your insurance company, the insurer, agrees to provide you with coverage. If you fail to comply with your obligations under the policy, that may be considered a breach. And if a claim arises while you are in breach, you may find yourself without coverage.
Unfortunately, many pilots and aircraft owners do not read their policies and may not be aware of their contractual obligations under the policy. This has come back to bite some insureds. To avoid this risk, a thorough review of the policy is both prudent and recommended. After all, how else will you know what your obligations are under the policy/contract if you don’t ever read it?
You should begin your review with the Data Page or Declaration Page and then work your way through the policy. If you don’t understand something, ask your agent or an aviation attorney familiar with aircraft insurance policies to explain. No, an aircraft insurance policy is not the most interesting reading. However, it is important that you understand your obligations under the policy. If you would like more information regarding aircraft insurance policies, please read my article My Policy Says What?!: Understanding An Aircraft Insurance Policy.
