Summer is upon us, and ag season is getting into full swing. But with more activity comes an increased risk of claims.
There are a lucky few operators who pride themselves on never having had a claim. Nearly everyone else is not that fortunate. Whether you have or haven’t, now is a good time to think about why you should turn in a claim and what to expect if and when you do.
Is everyone ok? That’s the first thing your agent should ask if you or one of your pilots has had an accident. The well-being of the pilot is of the utmost importance. Maintaining good records is critical in this circumstance because claims adjusters will likely want copies of the pilot’s log book, medical, the last completed pilot history form, etc.
Do I need to turn this in? That’s a question we producers get more often than you might think. Our guidance is always to turn in the claim. Some operators opt to take care of it themselves but be warned that the cost of either a hull or liability claim could easily get out of control. If that’s the case and you later have a change of heart, you cannot assume your insurance company will defend you if the claim isn’t reported in a timely manner.
What’s my deductible? Take special note of your deductibles when you receive your renewal quote or policy. In a majority of policies, there is no deductible for liability claims. For hull claims, however, a relatively small Not In Motion deductible is tied to an In Motion deductible that is, in many cases, equal to 5% of the aircraft’s insured value if it is a turbine. Some insurance companies provide the benefit of a waiver of the In Motion deductible for the first covered hull claim. You would avoid paying several thousand dollars out of pocket if the first hull claim of your policy period is a costly prop strike.
I’ve got a drift claim. Chemical drift claims happen every year, some more than others. If there’s even a suggestion that you drifted to someone’s hedgerow, call your agent so they can, at the very least, put the insurance company on notice for the potential of a drift claim. Operators are fortunate that most growers are reasonable and only ask to be made whole. But there are situations when contact with a grower isn’t pleasant. That’s why it’s good for an operator to have the even hand of the insurance company on their side to negotiate a settlement that all parties can live with.
