Aircraft Insurance - Who Can Pilot My Aircraft? Pilot Requirements and the Open Pilot Clause.

July 2002

By Timothy K. Bonnell Jr

We often get questions from our insured's regarding the Open Pilot Clause (sometimes referred to as Open Pilot Warranty) on their quote or policy. The Open Pilot Clause (OPC) in your aircraft policy lets you know who is allowed to fly your aircraft in addition to the named pilots. The hours and ratings listed under the OPC do not reflect any of the named pilots. It simply states that if any pilot who meets or exceeds the following requirements is flying the aircraft with your (the named insured's) permission, and within the scope of the policy, then you have coverage. That individual pilot may not have coverage, and in many cases should have a non-owned policy to cover his individual liability, but your liability is still protected.

A typical OPC on a fixed gear, 180 horsepower aircraft might read:

“Any Pilot, holding an FAA Private Pilot or more advanced certificate, having a minimum of 300 Total Logged Flying Hours, including 10 hours in the insured make and model aircraft.”

The OPC for a complex aircraft may require commercial and instrument ratings with a higher number of hours. Multi-engine aircraft will require a multi-engine rating for their OPC. Some aircraft may require a type rating and ground and flight school for the specific make and model. Many larger aircraft will require make and model school in the last 12 months. As you can see, the OPC will vary greatly for different aircraft. Some policies may have a named pilot only requirement, stating that you are only covered if the pilot is named to your policy. This is common in unique aircraft models and policies with a high number of pilots.

What if someone who is going to be flying your aircraft does not meet the requirements of the OPC? You will have to submit their pilot information to your company to see if they will qualify to be added as a named pilot. The catch-22 of this situation is that the companies do not like to add too many pilots to the policy. Many prefer to keep it at four pilots for an aircraft.

The rule-of-thumb for any aircraft policy is that you usually want to name the pilots who will be flying your aircraft on a regular basis. If it were a very occasional use, then those pilots that meet the OPC requirements may fly the aircraft under those terms. At the same time, be sure that you are not adding more pilots than your company would feel comfortable with.

A very important point to remember is that even though a pilot may meet the requirements of your OPC, most pleasure and business policies do not allow you to make a charge (profit in some cases) for the use of your aircraft. If there is a loss and it is discovered that the pilot was giving some sort of fee or remuneration for using your aircraft, coverage could be in jeopardy. If you are ever in doubt, call your agent for verification of what your policy will cover.

Some insurers issue broadening endorsements on their policies for preferred insured, which allow for a suspension of the Open Pilot Requirements to allow any pilot in the employ of an FAA certified repair station to operate the aircraft in conjunction with repairs or maintenance. The key here is “FAA certified repair station”. If your shop is not an FAA certified repair station, this provision would not apply.

To summarize, always make sure that any pilot who may fly your aircraft is either named as a pilot to the policy or meets the requirements of the Open Pilot Clause. Also, make sure that they are using the aircraft in accordance with your policy's terms. If they do not, there is a good chance coverage could be in jeopardy.

If you have any questions, please email us at info@pimi.com, or call us at 1.800.826.4442. We may address them individually or address them in upcoming issues.

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