Q: I own a flight school. Should I require my renters to have insurance?

A: There are many benefits to requiring non-owned (or renters) insurance for both your renter and the school. Let’s take a closer look at why:
Renter:
A non-owned aircraft insurance policy includes the insured’s legal defense. While an initial consultation with a lawyer can cost around $500, this is less than spent annually on a basic non-owned insurance policy. Regardless of fault, the insurance carrier will provide a defense in the case of legal action by an injured party. In addition, if the renter elects to purchase physical damage coverage, they will be protected for the flight school’s deductible up to the policy limits selected.
Flight School Owner:
Typically, flight school insurance policies do not cover loss of use. When an aircraft is damaged and taken off the line the flight school potentially loses profit.  A renter’s insurance policy can make up for that loss. Since most flight school leases hold renters responsible for the deductible, having non-owned coverage in place will help provide a smoother relationship with the renter during the claim.
Q: What limits should I request my renters to carry?
A: We always recommend an individual purchase as much liability coverage as they can afford. As a guideline, we recommend at least $500,000 each occurrence with $50,000 each person for bodily injury and property damage. For physical damage liability, a pilot should carry at least enough to cover the flight school deductible plus potential loss of profits while down for repair.
Q: How long does obtaining a renters insurance policy take?
A: It is very easy to start non-owned coverage today and coverage can be placed for standard, experimental, multi-engine, seaplanes and helicopter aircraft! It can take as little as ten minutes of your time when you sign up online. We are also only a phone call away at 877-247-7769. We recommend flight schools put a link to the online porthole on their website so students and renters can quickly find and start coverage.
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