Insurance Guide
Category: Guides
Published date: Apr 12, 2024
Table of Contents
AIRCRAFT AND OTHER INSURANCE 1
1. AIRPORT LIABILITY 1
a. Additional Insured 1
b Premises Liability 1
c. Product Liability (PX Insurance) 1
d. Premises Medical Payments 2
e. Hangar Keepers Liability 2
2. AIRCRAFT LIABILITY 2
a. Aircraft Liability 2 b. Medical Payments 2 c. Baggage Liability 2
3. HULL INSURANCE 2
a. Aggregate Hull Program 2 b. Comprehensive Coverage 2
4. AIRMEET LIABILITY 3
a. Additional Insured 3 b. Airmeet Liability (Including Pyrotechnic Liability) 3 c. Legal Liquor Liability 3
5. PILOT NON-OWNER HULL PROGRAM 4
6. DIRECTORS AND OFFICERS INSURANCE 5
7. HOLD HARMLESS AGREEMENTS 5
- WHAT TO DO IN THE EVENT OF A LOSS 5
AIRCRAFT AND OTHER INSURANCE Costs are not quoted in this document because the rates change each year. Contact the CAF’s Chief Aviation Officer for current details.
- AIRPORT LIABILITY (Policy Period: April 1st – April lst of each year)
a. ADDITIONAL INSURED: a) Officers, directors, employees of the named insured and any other person or entity when performing duties in conjunction with the insured's covered activities.
b) Any person who is a volunteer worker for the named insured, but only while acting at the direction of and within the course and scope of their duties for the named insured
c) Other additional insured contracts that are required by the named insured.
b. PREMISES LIABILITY; $5,000,000 Each Occurrence/$10,000,000 Aggregate: This coverage protects the insured for losses they are required to pay due to Bodily Injury or Property Damage to others. It specifically covers any facilities owned or leased by the various wings and squadrons of the Insured as reported under the policy. This also includes coverage for the Insured's use of any premises incidental to their operation.
c. PRODUCTS LIABILITY; $1,000,000 Each Occurrence/Aggregate; $100,000 Each Person Bodily Injury Products Liability protects the Insured and its various wings and squadrons for losses they are required to pay for Bodily Injury or Property Damage to others caused by the sale of products or services rendered at their various locations. This coverage has been tailored to meet the needs of the above entities and picks up items such as sale of aircraft, aircraft parts, fuel and oil, souvenirs and service or repair of aircraft.
d. PREMISES MEDICAL PAYMENTS - $10,000 each person/$50,000 each occurrence: This coverage pays up to $10,000 per person $50,000 per occurrence for reasonable medical expenses for each person who is injured on the premises of the Insured or its various wings and squadrons.
e. HANGAR KEEPERS LIABILITY; $1,000,000 each Aircraft/$5,000,000 each occurrence ($1,000 deductible): Covers the Insured and its various wings and squadrons for damage to the aircraft of others, which are in the care, custody, and control of the Insured at the time of loss. For instance, if an aircraft not belonging to the CAF is parked inside the insured's hangar and is damaged due to the negligence of the CAF, insurance would cover the physical damage done to the aircraft up to the limit provided under the policy.
- AIRCRAFT LIABILITY (Policy period November 1 - November 1 each year)
a. AIRCRAFT LIABILITY; Flight Limits - $10,000,000 Combined Single Limit Bodily Injury and Property damage with the Passenger Liability limited to $250,000 each.
Static Limits - $1,000,000 Combined Single Limit Bodily Injury and Property Damage Excluding Passengers.
Covers the Insured and its various wings and squadrons for Bodily Injury and Property Damage they are legally liable to pay arising out of the ownership, maintenance or use of the Insured's aircraft.
b. MEDICAL PAYMENTS; $5,000 each person: In addition to the coverage above, the policy also covers medical expenses for each person who is injured while a passenger in one of the Insured's covered aircraft. The insured does not have to be at fault.
c. BAGGAGE LIABILITY: $5,000 each occurrence This section of the policy covers the Insured and its various wings and squadrons for their liability for the baggage of crew members and passengers which is damaged or destroyed while the Insured has charge of or transports it on one of their aircraft.
2. EXCESS AIRCRAFT LIABILITY
(Policy period March 13 – March 13 each year)
Provides an additional $10,000,000 of Liability coverage above the Aircraft Liability (discussed above).
3. HULL INSURANCE
(Policy period November 1 - November 1 each year)
a. AGGREGATE HULL PROGRAM (See Limit below)
Aggregate Hull Program with Aggregate limit of $1,000,000. This Policy responds in the event of a total loss of aircraft not to exceed the aggregate amount of $1,000,000.
The aggregate limit shall be reduced by the amount paid for a destroyed aircraft before the deductible has been satisfied. A deductible shall apply separately to each destroyed aircraft. You may keep the destroyed aircraft.
Deductibles: Aircraft valued at less than $100,000 is $10,000. Aircraft valued at greater than $100,000 is $50,000.
b. COMPREHENSIVE COVERAGE
An aircraft insured under the Comprehensive Hull policy covers both a partial and a total loss, subject to the deductible. The uses, pilots, etc. remain the same as those found under the master policy. This coverage could negate the need for the Pilots’ non-owned coverage.
Pricing for the Comprehensive Hull policy and the deductible is determined by the value of the aircraft.
AIRMEET LIABILITY (Policy Period: April 1st – April 1st of each year)
a. ADDITIONAL INSURED:
a) Officers, directors, employees of the named insured and any other person or entity when performing duties in conjunction with the insured's covered activities.
b) Any person who is a volunteer worker for the named insured, but only while acting at the direction of and within the course and scope of their duties for the named insured
c) Any governmental entity as required by airmeet contract. For example, the Texas State Guard.
d) Other additional insured contracts that are required by the named insured.
b. AIRMEET LIABILITY; $10,000,000 Combined Single Limit Bodily Injury and Property Damage Covers the Insured and its various wings and squadrons for their liability arising from airmeets in which they are a sponsor or participant or are otherwise represented.
a) Covered Activities:
(1) Airshows or events in which the Commemorative Air Force is a sponsor, participant, or otherwise represented including pre/post airshow activities, including static displays of all touring aircraft. (2) Includes Pyrotechnic Liability of $10,000,000 any one occurrence and in the aggregate. Note: All pyrotechnic activities must be supervised by a licensed pyrotechnic person.
c LEGAL LIQUOR LIABILITY; $1,000,000 each occurrence:
Covers the Insured and its various wings and squadrons for losses they are required to pay for Bodily Injury or Property Damage to others caused by the sale of alcoholic beverages at their various locations.
This coverage does not apply to: Bodily Injury or Property Damage for which any insured may be held liability by reason of: a) Causing or contributing to the intoxication of any person;
b) The furnishing of alcoholic beverages to a person under the legal drinking age or under the influence of alcohol; or
c) Any statute, ordinance or regulation relating to the sale, gift, distribution or use of alcoholic beverages.
This exclusion applies only if you: a) Manufacture, sell or distribute alcoholic beverages;
b) Serve or furnish alcoholic beverages for a charge whether or not such activity (1) Requires a license (2) Is for the purpose of financial gain or livelihood or (3) Serve or furnish alcoholic beverages without a charge if a license is required for such activity.
- PILOT NON-OWNERS HULL PROGRAM
(Policy Period: March 1st - March 1st of each year)
This policy has several limits, depending on the type of aircraft being flown by a given pilot. Limits are either $25,000 with a deductible of $5,000; or $50,000 or $100,000 with a deductible of $5,000. This coverage responds in the event a pilot, through his own negligence, damages an aircraft. This coverage responds to physical damage only to CAF owned aircraft and only up to the limit purchased less the applicable deductible. This only covers pilot negligence, not mechanical failure.
CAF pilots will not be personally responsible for damages above the limits of the non-owned policy.
CAF units will establish a policy on how both the deductible and the total cost of repairs will be paid for.
This insurance is to be carried by each pilot* if he/she desires to fly CAF aircraft, payable to the Commemorative Air Force, P.O. Box 764769 Dallas TX. 75376. This policy is designed to cover individual pilots and mechanics of the Commemorative Air Force. (Checks or credit cards received by Headquarters enables the donation to also be used for tax purposes. Each pilot will receive a thank you from Headquarters for this purpose. Please advise if you do not receive this letter.)
* Under certain circumstances, a pilot may be exempt from this requirement:
a. If he/she is a co-pilot only and does not fly any other CAF aircraft as PIC and flies with a pilot-in-command who has purchased the non-owner insurance, then he/she may fly a CAF aircraft without purchasing this coverage.
b. A CAF check pilot without CAF non-owner insurance can only give check rides to CAF pilots who serve as the pilot-in-command and who carry the non-owner coverage.
There is a reduction of 25% if a pilot attaches after 6 months.
- DIRECTORS AND OFFICERS INSURANCE
Covers certain claims against all directors and officers of the Commemorative Air Force and its affiliates. This policy is a “claims made coverage” with defense expenses included in the limit of liability. The policy covers certain “wrongful acts” and the “insured person(s) includes any natural person who was, is or becomes a duly elected or appointed member of the General Staff, officer, an Executive Officer, employee, volunteer, or member of a duly constituted committee of the CAF and its affiliates. Units are not charged a pro rata share of this policy as all costs are absorbed by Headquarters.
- HOLD HARMLESS AGREEMENTS (Ref: CAFR 60-1 for details)
All pilots and crew of CAF aircraft must have a current (updated yearly) signed Hold Harmless Agreement on file at the Unit, prior to the flight. The Pilot-In-Command is responsible for verifying that each person on board has completed a Hold Harmless, and that each person is on the crew manifest as required.
(Please note: Hold Harmless Agreements are located on the “CAF Member’s Only” portion of the CAF website, and can be downloaded and used as required)
www.CommemorativeAirForce.org
- WHAT TO DO IN THE EVENT OF A LOSS
a. Obtain medical assistance as required;
b. Secure the aircraft to prevent further damage;
c. Call Chief Aviation Officer, Jim Lasche, at Cell Phone 817-757-9319 to report the loss. If he is unavailable, you may also contact the Director of Training and Operations, Bill Ervin, at 817-905-5532.
d. DO NOT communicate with anyone regarding the loss; DO NOT speculate with anyone about the loss. This includes individuals, the news media or anyone outside of the CAF. However, do not discuss the loss with other CAF members, please limit your conversations to Jim Lasche, other CAF Officers, and insurance personnel.
If you have any questions regarding the loss, please contact the Chief Aviation Officer or the Director of Training and Operations as soon as practical.
End of Guide
