What does Fleet Policy Aircraft mean? Read on to discover the definition & meaning of the term Fleet Policy Aircraft - to help you better understand the language used in insurance policies.
Fleet Policy Aircraft
The fleet policy typically affords both liability and hull coverages. Compared to a stand-alone nonowned aircraft liability policy, a fleet policy offers a number of benefits for an aircraft owner: coverage is generally broader and more cost effective; losses under the fleet policy will affect the aircraft management firm's (AMF's) loss history rather than the owner's loss history; the AMF handles claims; and, because coverage is handled by a single party (the AMF) rather than being divided between the owner and manager, coverage gaps are less likely. Disadvantages include dilution of limits, possible policy cancellation by the AMF, and the aircraft owner likely being barred from suing the AMF for faulty maintenance.
We hope the you have a better understanding of the meaning of Fleet Policy Aircraft.