A student pilot at Chesapeake called last week to ask questions about the non-owned application he was completing.  In trying to figure out which limit of liability he wanted to purchase, he asked if there was any liability coverage for students under Chesapeake's policy.  I advised him that there is a $100,000 limit included within the fleet policy limit for Students and Renters.  

Some states require that insurance companies include a basic limit for students and renters so it is common practice for insurance companies to include the $100,000 limit, at no cost, on all of their Instruction and Rental policies.

The liability coverage on the fleet policy for Students and Renters is included in the fleet policy limit and is not in addition to the limit.  Students and Renters will be included as Additional Insureds up to the $100,000 limit if there is any bodily injury or property damage (other than to the aircraft they are flying) for which they are found to be liable.  The Non-Owned policy provides them with an additional limit above that with their own representation by the insurance company (Chartis), which is to their benefit.

Another issue arose in conjunction with this.  We received two applications last week for non-owned coverage in which the pilot only chose physical damage coverage, and not liability as well.  (Maybe the word is out that your fleet policy includes the $100,000 limit so they think they do not need to purchase additional liability coverage.)  Under the non-owned policies, physical damage coverage is only available in conjunction with liability coverage.  I advised the two pilots and they both purchased liability coverage.

Please advise all of your CFIs that students and renters also need to buy at least the minimum limit of liability in column 1 of the application, plus they need to add $1 for the Terrorism coverage as stated at the bottom of column 2.

Thanks, Helen.  Please review and advise if you have any additional questions.  We appreciate that you support our office by referring pilots to us for their coverage.

Regards,

Denise