Who, What For and Where? Staying within the Coverage Envelope

Despite the popular image of insurance companies, very few get any pleasure from denying claims. Apart from anything else, repudiations often lead to long and expensive litigation, which interrupts the otherwise peaceful existence that most people entered the insurance industry to achieve! Yeah….right!

However, where claims are refused, the basis of such refusal is most often a breach of what we at DJA refer to as the “Coverage Envelope”. As many as 9 out of 10 repudiations can be directly attributed to this reason.

The Coverage Envelope is simply the three parameters that describe the operation of the aircraft that the Insurer has agreed to cover. In other words:

Who? Who may fly the aircraft (the Pilot warranty)

What For? What the aircraft may be used for (the Uses provision)

Where? Where the aircraft may go (the Geographical Limits)

If you ensure that the aircraft always remains within its Coverage Envelope, you will be well on the way towards ensuring a hassle-free claim following a loss. The Coverage Envelope should be clearly written out and fixed somewhere inside the aircraft where every pilot can see it clearly.