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AVIATION ISSUES

War Hull Coverage


Think it only applies if you leave the United States?
Think again.
by Kyle P. White

M
any King Air operators stay within the fusion or other like reaction or radioactive
continental United States and therefore feel it force or matter.
is highly unlikely that they would benefit from
purchasing War Hull Coverage. War Hull is typically (c) Strikes, riots, civil commotion or labor
an excluded peril in your aircraft policy, but for a small disturbances.
fee, you can buy the coverage back via an endorsement. (d) Any act of one or more persons, whether or
Buying War Hull back into your policy can be done for not agents of a sovereign power, for political
anywhere between free (you just have to ask for it) and a or terrorist purposes and whether the loss
nickel hull rate, which would equate to $500 in additional or damage resulting there from is accidental
premium for a King Air that is insured for $1,000,000. or intentional.
So, why do you need War Hull Coverage and what (e) Any malicious act or act of sabotage.
does it cover? First, look at how one carrier defines it
in their exclusions, and how they then “write it back” (f) Confiscation, nationalization, seizure,
in to your contract. restraint, detention appropriation, requisition
for title or use by or under the order of any
Excluding the coverage: government (whether civil, military or de
facto) or public or local authority.
VII. War, Hi-jacking and Other Perils Exclusion Clause
(g) Hi-jacking or any unlawful seizure or wrongful
The following exclusion clause is added to the
exercise of control of the aircraft or crew
sections of your policy entitled “Liability claims
(including any attempt at such seizure or
we won’t cover,” “Aircraft damage we won’t cover,”
control) made by any person or persons on
and “Your Medical Coverage,”
board the aircraft acting without your consent.
We won’t cover any claim, damage, injury, The policy wording writing it back into the policy:
loss, cost, expense, or liability of any nature
whatsoever arising from, occasioned by, or in 2. Only with respect to the aircraft scheduled below
consequence of: and with respect only to “Your Aircraft Physical
Damage Coverage,” the “War, Hi-jacking and Other
(a) War, invasion, acts of foreign enemies, Perils Exclusion Clause” shall be amended to delete
hostilities (whether war be declared or not), paragraphs (a), (c), (d), (e), (f), and (g) thereof subject
civil war, rebellion, revolution, insurrection, to the following:
martial law, military or usurped power or
attempts at usurpation of power. a. Automatic Termination

(b) Any hostile detonation of any weapon of war This Limited Write-Back shall terminate automati-
employing atomic or nuclear fission and/or cally under any of the following circumstances:

18 • KING AIR MAGAZINE AUGUST 2013


(i) upon the outbreak of war (whether there be wasn’t until the owner was able to put up $25,000,000
a declaration of war or not) between any two in other assets did the government return the jet to
or more of the following: France, the People’s the owner. So, the insurance company never had to
Republic of China, the Russian Federation, pay on this one, but they could have if the owner was
the United Kingdom, or the United States carrying war hull and the airplane wasn’t returned to
of America; or the owner.
(ii) only with respect to the deletion of paragraph Are there other examples for this happening in the
(a) from the “War, Hi-jacking and other United States? I don’t know. But for as affordable as
Perils Exclusion Clause,” upon the hostile this coverage is, I think it would be a prudent purchase
detonation of any weapon of war employing giving all of the perils it covers.
atomic or nuclear fission and/or fusion or other
like reaction or radioactive force or matter Lastly, one may argue that if an insured does something
wherever or whenever such detonation may to violate the policy, then the policy won’t pay. That is
occur, and whether or not an aircraft covered true with the exception of savvy lien holders. They
under your policy may be involved; or know that from time to time aircraft owners “breach
the contract” with the insurance company, thereby
(iii) upon the requisitioning of any aircraft covered
allowing the carrier to deny a claim. This is why the
under your policy for title or use.
lien holder will ask for a “breach of warranty” when
The write-back gives all coverages back except (b), they are named as a loss payee on the policy. So, even
which is the exclusion of any hostile detonation of any if the aircraft owner violates the policy, the lien holder
weapon of war employing atomic or nuclear fission and/or still gets paid. KA
fusion or other like reaction or radioactive force or matter.
About the Author: Kyle P. White is the president of
I know you are thinking, “we’d have to be operating Aviation Solutions, LLC, and has professionally flown
our King Air in some pretty bad places in the world King Air 90s and B200s. He holds a Commercial
where some of the above events are currently happening and Flight Instructor license. You can reach Kyle at
in order to need this coverage.” However, there is one kylewhite@aviationsolutions.aero.
paragraph of coverage that I’d like for you to pay particular
attention to, and that is coverage
(f), which includes perils such as
“confiscation” and “seizure.”

There have been many general


Extend TBO to 8000 hours!
aviation aircraft that have been
either confiscated or seized over It’s about time for
the years by foreign governments
for many different types of alleged
actions. Two immediately come to WEBSITE
mind – one was a Cheyenne 400LS www.morecompany.net
by the Columbian government and EMAIL
another is the Embraer Legacy that info@morecompany.net
was confiscated by Brazil after a PHONE
mid-air collision in their airspace (775) 782-3346
with an airliner.

King Air owners who never leave


the United States should also
carry this coverage as the United
States or other governing body
within the county (remember, the
coverage says “or public or local
authority”) could confiscate an
aircraft. It has happened too. In
2008, a Hawker 4000 was seized by
our government. This $21,000,000
insured asset made the insuring
company very nervous for a little
while. The aircraft was seized and
then flown to Midland, Texas. It
AUGUST 2013 KING AIR MAGAZINE • 19