|Renters & Borrowers, officially called Non-owned Aircraft Insurance, is important coverage if you rent or borrow airplanes.
The common misconception is if the airplane is insured, whoever flies it is covered no matter what.
In most cases that is not the case and you could have a nasty surprise if you are involved in a claim with some else’s plane.
Let’s use the following scenario to demonstrate the point.
You have a buddy who asks you to re-position his plane from one airport to another. You are familiar with his plane, having flown it previously, and you agree to make the VFR flight.
Your flight is uneventful and you arrive on time and you taxi to the FBO.
Your friend’s plane has a larger wingspan than you are used to and when you taxi onto the ramp you hit an unoccupied Gulfstream causing considerable damage to the G5 and your friend’s C206.
Total bill $100,000. WHO PAYS?
Simply put- YOU pay.
As PIC you are legally liability for Physical Damage &/or Bodily Injury as a result of your actions.
In all likelihood the insurers covering the damaged aircraft will pay the respective owners and subrogate against you. Subrogation is the right of an insurer to pursue a Third Party (YOU in this case) causing an insurance loss to the Insured. This is done as a means of recovering the amount of the claim paid to the insured (the damaged party(ies) for the loss.
That means after the Insurers for the C206 and the G5 settle the claim for damages to their subject aircraft they then seek to recover from you.
That is where Renters & Borrowers Non-owned Aircraft Insurance steps in and defends you (if necessary) and pays for the damages you caused.
To get a quote click here or call us at 305 743 7711 (in the UK +44 (0) 203 371 9167.