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What’s the Benefit of a Smooth Limit?

To begin you need to understand the difference between a smooth liability limit and a per passenger liability limit to contemplate the benefits.

Smooth liability limits written with AssuredPartners Aerospace mean one important thing – the removal of the passenger sublimit.  The term “smooth” refers to the policy’s aggregate payout being smoothed over the entire covered loss for property damage and bodily injury to others.  Simply put, the entire liability limit you purchased would be available for a covered loss and not limited to a per passenger/person maximum. 

However, we must also ensure you qualify for the smooth limit.  Most carriers have minimum standards for both the pilot and the aircraft.  The pilot may need a minimum of 500 hours along with an instrument rating.  Generally, the aircraft needs to have a manufacture date of 1970 or later.

Once a broker indicates that a carrier will offer smooth limits, look at the premium differential.  Many times, a smooth policy is only a few hundred dollars more than a sublimit policy.  However, since a smooth policy removes the sublimit for passengers, you need to consider if you take anyone flying in your aircraft and who that is.  If you are a single seat aircraft or only ever fly by yourself, a smooth limit may not make much sense.  However, if you take family members, business colleagues, neighbors, children…or anyone in your aircraft, a smooth limit could make a significant difference in their available coverage under your aircraft policy.  Keep in mind, if someone’s loss exceeds the amount available under your policy, they make look for your other assets to make them whole.  Considering medical bills, pain & suffering, and any other covered items, you could quickly max out a sub-limit.

The last thing a good pilot wants to consider is the possibility of being liable for bodily injury or property damage to another.  Although it may seem improbable, these incidents do happen.  Great pilots recognize this and turn to trusted advisors for how to properly cover their assets. 

Partner with the best in the business.  AssuredPartners Aerospace is always standing by to help you navigate the insurance market.  Call us today at 800-622-2672 or visit ap-aerospace.com/owner for more information.  We also offer this FREE Owner Guidebook resource as a download.

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