AERO CLAIMS
PROCESS

What will TRICOR Insurance’s aviation division, previously known as Aero Insurance LLC, do for me?

We work to make sure you get your claim resolved as quickly as possible, fairly and that you get what is payable under the policy. After the claim is closed, we want your feedback on how the company and we did. If there's been a problem, we want to do what we can to make it right and prevent it from happening again. We strive to take every reasonable measure so that your claim is handled in a courteous, professional and prompt manner.

Your actual policy and related endorsements are the sole determining contract of coverage and the insurance carrier's duties and obligations in the event of a loss. It is critical to read your policy and gain an understanding of what is and is not covered by your policy. If you have a question, ask us. Serving you and helping you to understand your policy is what we are here to do.

What is the initial process?

Once contact has been established with the adjustor, you will normally be asked to complete a company loss report and document several items including aircraft registration, airworthiness certificate, and applicable information from the aircraft and/or engine logbook(s) to include confirmation of a current annual inspection.

You will also be required to fully document pilot credentials, including logged hours, specific confirmation of any required training and/or checkout requirements and verification of a current FAA medical certificate and flight review. The adjustor may or may not physically inspect the aircraft, depending on the degree of damage. Often you will be asked to provide photographs of the damage, including a complete photo of the aircraft to document the registration number.

Once the insurance company is reasonably satisfied the claim is covered under the policy, they typically request estimates to repair the damage. Often more than one estimate is required and this may be difficult, depending on the circumstances of the loss. The aircraft owner is ultimately responsible for authorizing any work order, however the adjustor will want to have an opportunity to review the estimates and discuss the repairs with you before you commission the work.

What if there needs to be an engine inspection?

If it becomes necessary to disassemble your engine as a result of the occurrence, some insurance companies routinely reimburse for the cost to remove, disassemble, inspect and reassemble the engine. Other companies may not necessarily cover the disassembly if no applicable damage is discovered, depending on the circumstances of the claim. Any components damaged as a result of the occurrence are covered.

Sometimes however, parts may be discovered that are unairworthy for reasons of wear and tear or causes unrelated to the occurrence. The insurance company will not reimburse the cost of repairing or replacing such parts therefore they become the owner's responsibility. Windshield damage claims often result in the use of independent laboratory testing to ascertain whether the damage arose out of an occurrence or over time due to wear and tear. These lab reports are typically ordered and paid for by the insurance company.

How does betterment and depreciation affect my settlement?

In many cases when propellers and limited-life components are damaged and repaired or replaced, they are returned in a "zero-time" condition. Since manufacturers routinely recommend a time limit between overhauls on these items, insurance companies calculate prorated depreciation based on an estimated flat rate overhaul cost of the propeller or component part had it not been damaged. For example, a $3,000 propeller damaged at "mid-time" would result in $1,500 reimbursement, if replaced.

Occasionally during the repair process, other repairs are elected, equipment upgraded or appearance enhanced. In these cases, obviously only the repairs associated with the damage will be reimbursed by the insurance company. For example, a damaged component may require painting to match but not warrant an entire painting of the aircraft.

What else do I need to do to get payment of my claim?

Most insurance companies require a properly executed Proof of Loss form (signed and notarized) in their office prior to claim payment. Claim drafts are typically made payable to the Policyholder and other documented parties and must be endorsed by signature prior to presenting for payment (company stamps are not accepted). If you have a lienholder or owner/lessor listed on your policy as a loss payee, their name will appear on any claim draft/check issued for a physical damage (hull) loss. Arrangements should be made with these interested third parties for their endorsement of the draft/check.

During the process of handling the loss, insurance companies frequently will order a title report from FAA records. If the Named Insured and the registered owner of the aircraft are not the same, be prepared to provide the insurance company with acceptable proof that the Named Insured has an insurable interest in the aircraft.

Claims for other expenses should be submitted in a logical format that completely describes what type of reimbursement is being presented for consideration. Keep in mind there are some expenses an insurance policy will not cover such as your time in working through the claims process.