Common Misconception: “My Aircraft is Fully Covered at the Shop”
Similar to questions about winterizing aircraft, we often hear owners tell us “my aircraft is at the shop so their insurance applies. You can take my coverage off.” This isn’t 100% accurate. The ONLY time your aircraft would be covered by their policy would be if they were liable for damaging it. Outside of that, it’s your policy that will respond. Therefore, dropping coverage simply because your aircraft is at the shop creates enormous exposure for you because it’s essentially uninsured.
Insurance policies have built-in mechanisms for crediting periods of inactivity. Before we address them, it is imperative to note that you should not remove coverage for your aircraft altogether. Just because you’re not flying does not mean you’re safe from any losses. The option you should choose depends on two things: 1) the type of coverage endorsements included in your policy, and 2) your true expectation of usage. In other words, are you “grounding” the aircraft for the next several months or are you just assuming you won’t fly for a while?