Incidental Commercial Uses

Incidental commercial operations would best be described as using your aircraft for a commercial purpose on a part time basis. An example might be someone who owns a PA-31 that has the camera hole STC in the belly. The owner flies the aircraft 150 hours per year on average. Of those 150 hours, 25 are spent doing high altitude aerial mapping. In this example 17% of the annual utilization of the aircraft is used for a commercial operation/purpose.

Most insurance companies would view this type of operation as incidental commercial. In other words you don’t have the exposure of a full time commercial business operating in excess of 400 hours a year. They take this into consideration and adjust the premium accordingly. This class of operations can cover anything from aerial photography to cadaver hauling. We cannot list the number or names of different types of uses that people use their aircraft for as the phrase "have airplane will fly" describes the number of possible operations that can be covered.

Instruction & Rental

National Aviation Insurance Agency can provide coverage for FBO's, flying clubs or any organization or entity that provides flight instruction or aircraft for rent. Insurance for what the insurance industry calls instruction and rental can be difficult to obtain at reasonable premiums. That is where N.A.I.A. truly excels. Whether you have one aircraft or 50 aircraft available N.A.I.A. can negotiate with the insurance companies for the best coverage and premiums.

The most often asked question regarding instruction and rental coverage is "how much is it?"
That question cannot be answered until all the information regarding your operation has been obtained but generally insurance for commercial operators that need instruction & rental coverage can expect to pay 4 to 5 times what you would pay if you just used that aircraft for your personal and business use.

Part 135/ Charter-On Demand

Charter operations can also be a very difficult insurance placement regardless of whether you operate cargo only or passenger and cargo operations, single pilot VFR/IFR or dual crew cockpits. Insurance companies have had mixed results as respects charter operators in the past but insurance coverage can be obtainable provided you operate a solid, reputable organization.

Generally speaking if you operate turbine equipment and have a proven track record of profitability and safety then insurance coverage should be readily available. Piston equipment operators will generally have fewer options for their coverage and will have higher rates than the turbine operators.
The reason can be explained by the superior capabilities and reliability of turbine equipment.

Airline/ Part 121 scheduled service

Airline or 121 operations are handled quite a bit different than the rest of general aviation. Typically the liability limits and the value of the aircraft are too much for a single aviation insurer to handle so the risk to the insurance company is split among several insurers. This can be on a quota share basis or on a vertical basis.

If you need more information or coverage for a scheduled airline/ 121 operation give us a call for further discussion.

We offer many different ways to get a quote. You can click on any of the links below to get a quote from N.A.I.A. or you can call us at 1-877-574-NAIA(6242).