Over the years, Sue Fassett and I have attended many SSA Conventions. Many people stop by our booth, both clients and non clients, to say "Hi" and ask some very good questions. So good we thought sharing them with everyone would be of service.

Q: I am a senior glider pilot. To acquire or retain insurance in the SSA Group Plan must I obtain a FAA flight physical or a doctor's health statement?

A: No, unless there is some indication of a problem.

Q: While all the carriers insuring gliders can provide $1,000,000 of bodily injury and property damage liability, some lower that amount to $100,000 when it comes to injury to a "passenger" or any "person". What is the difference?

A: If the limitation is per "person" the $100,000 maximum applies to people outside the aircraft as well as any one passenger. You'd have to injure 10 people to exhaust the $1,000,000 limit.

If the limitation is per "passenger", and a person outside the aircraft was hit, the full $1,000,000 is available. The $100,000 applies to each passenger only. Should someone outside the glider be hit the difference is $900,000 more protection with the program.

Q: My club or commercial operation leases space on an airport. We understand airport premises liability is generally available on two formats. What are they?

A: The common limit purchased is $1,000,000 for bodily injury and property damage per occurrence. The second option is $500,000.

Q: Does the group program's aircraft liability policy have a family restriction in it?

A: No.

Some carriers policies reduce the bodily injury liability limit to $25,000 for suits resulting from negligent injury to a spouse and only $12,500 to a parent or child. The program's policies have no such reductions.

Q: I can't carry any passengers, so why should I purchase passenger liability insurance on my single seat glider?

A: If the glider is only flown by its owners, passenger liability need not be purchased. If the sailplane is loaned to a permissive user, that pilot would be considered, for insurance purposes, a passenger.

When the permissive user is hurt, not due to their pilot error, but due to being provided a faulty aircraft to operate they are apt to sue the owner for their injuries. Without passenger liability the owner would have no coverage. The premium difference between having and not having passenger liability is minimal. We recommend it to all our clients.

Q: I live in a part of the country where soaring is not possible year round. Do all carriers insuring gliders provide a rate reduction while my glider is in storage?

A: No.

The SSA Group plan does. The criterion for storage credit is the glider must not be flown for a minimum of 90 consecutive days and we must be advised in advance. Both hull and liability coverage must be on the policy.

Q: Under the SSA plan for storage is the hull of the glider covered during the storage period? Do I have to wait till the end of the policy period to receive the credit off my rates?

A: Yes, the hull is covered during storage while parked or moving in the trailer. No, coverage whatsoever applies if the loss is due to a flight operation during the storage period.

The rate credit is usually received within 30 days of our being asked to modify the policy. Typically, however, the customers give us the storage dates at the beginning of the policy period so the credit can be applied up front.

Q: What should I do if I'm insured in the group plan and have an accident?

A: If the loss involves bodily injury seek medical treatment ASAP. Then report the claim to Costello Insurance.

If a hull loss:

1. Move the glider to a safe place. Don't let it be a hazard to someone else or expose it to further damage.
2. Report the loss as soon as possible to Costello Insurance prior to repairs. (If not in the group program report it to your agent or carrier)
3. Costello will report the loss to the carrier who will assign an adjuster to work with you.
4. Take pictures of the damaged areas.
5. Reporting a loss after repairs are completed could jeopardize coverage. If the loss turns out to small the claim can be retracted and no claims free credits built up over the years will be lost.

*** And now a question for you:

1: During your landing roll a person wanting a more dramatic picture gets close to the runway. You are pushed in their direction by a sudden cross wind and the shutter-bug is clipped by the wing. They are injured to the tune of $300,000 plus $200,000 for pain and suffering. How much would your insurance carrier pay if your liability was:

1. $1,000,000 limiting passengers to $100,000?
2. $1,000,000 limiting each person to $100,000?

The answer is at the end of the article.

Q: If the loss is adjusted by the insurance carrier, why do I need a broker?

A: Regardless of the carrier involved, most claims go smoothly. In spite of the common rumor, carriers don't look for any way possible to avoid paying claims. On rare occasions there are misunderstandings resulting from communication problems. The broker, who is experienced with the system, can assist the insured in expressing their point of view. Without the broker the insured would be on their own.

Q: With respect to tow planes, I understand the program, for only $35.00 per tow plane, can offer an "engine tear down" endorsement. Why should I consider it?

A: Not all losses with tow planes are crashes. Many involve sudden stoppage of the prop as a result of hitting something during tow while the power is nearly off. Yet the mechanic suggests the engine be torn down and inspected for internal damage, most of the time no damage is found and the insured has a bill for the teardown of the engine.

Some carriers will pay nothing in this situation. Others might pay a portion of the bill. With the engine teardown endorsement added to the policy, our carrier will foot the bill less the applicable deductible.

Q: I had a glider insured outside the program. When I sold it I cancelled my policy mid term. The return premium was not as much as I expected. When asked why the company said they were entitled to cancel the policy "short rate" and retain some premium to cover their processing costs. Does the group plan handle mid term cancellations the same way?

A: No.

We return the premium on a prorate basis even if the customer cancelled the policy due to a total loss. The difference between a pro and short rate cancellation is 8 to 10% with more being returned on a prorated basis. We believe this to be another feature unique to the group plan.

Q: Why purchase non-ownership coverage and what should I look for in a policy?

A: Non-ownership or renter pilot liability insurance is needed by anyone who may rent or borrow non-owned gliders. The pilot can be held accountable for the bodily injury or property damage they cause with the glider, and is responsible to the glider owner or the insurance company for the damage they negligently cause to the glider being used. Non-ownership policies are inexpensive and provide free defense coverage in addition to liability limits.

Unlike most policies on the market, the group plan extends coverage to the operation of experimentals as well as those gliders with standard airworthiness certificates. Also, our liability coverage limits just the passenger, not every person, to $100,000.

Q: As a commercial operator, is it of benefit to my renter pilots to suggest they carry non-ownership hull and liability insurance?

A: Yes

Most commercial operator's policies, regardless of the carrier they are with, provide little or no liability coverage to the renter pilots. (Some coverage is available through the SSA program). Should the renter hit someone or do property damage they should have their own insurance.

Also, if they negligently damage the hull of the rented glider they may have to reimburse the FBO for their deductible and loss of use of the glider. There is also the potential of having to reimburse the insurance company for what they paid the FBO.

Caution to commercial operators, non-ownership policies only pay if the renter was negligent. We see many weather and ground handling losses yearly that have nothing to do with the renter pilot. Without hull insurance the FBO would not have insurance for these losses.

Q: How strong is the group plan's current insurance carrier?

A: Very, very strong.

We have never had a company as strong as AIG Aviation, Inc. AIG is rated by A.M. BEST, an independent company that ranks insurance companies by the quality of their management and financial strength, as A++15. This is the highest possible rating. The lowest rating is F1.

Another plus to working with AIG is their location. Both Costello and AIG are in the Phoenix, Arizona area. Important matters can be handled face to face.

Q: "Why should I do business with Costello Insurance?"

A: The short list of reasons are:

1. Excellent service with an experienced staff.
2. We offer a strong insurance carrier.
3. A unique insurance contract is provided.
4. A rate reduction is provided for those who store their gliders.
5. Telephone communications are toll-free.
6. Claims-free customers are rewarded with reducing deductibles and rate credits up to 25%
7. You're not on your own when it comes to representing your needs to an aviation insurance carrier. Costello Insurance is there.
8. Group rates.
9. No special off-airport or canopy deductibles.
10. 10. Pat Costello has been servicing the SSA Program since 1984.

It should be kept in mind that the SSA insurance program is a benefit offered by the SSA. It will be there for the members so long as they keep it large enough to attract insurance carriers. If there was no group program what would the commercial operators, clubs, and individual glider owners have done for broad, affordable insurance during those times when few if any carriers were interested in offering coverage?

Answer to question 1 is: 1. $500,000 2. $100,000

Soaring Magazine 1996
(Updated 9/30/03)