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INSUR ANCE INSIGHT By Steve Bruss 36 JANUARY/FEBRUARY 2017 AIRCRAFT MAINTENANCE TECHNOLOGY E VER SINCE THE 1940'S THE VERTICAL DEFIANCE of gravity has fascinated the aviation commu- nity. The ability to hover above a fixed point and enjoy the view has not lost its thrill. Let's not forget the exceptional utility of these miraculous mechanical marvels. Helicopters are used extensively for heavy lift, patient rescue, law enforcement, news gather- ing, agricultural spraying, and many other jobs that require the vertical or stability capabilities of these machines. With this utility comes trade-offs. Flying helicopters safely and precisely requires continuous training and practice, as well as frequent and intensive maintenance and high operating expenses can lend to difficulty in obtaining insurance. SPECIFIC GENERALITIES Aviation under writers face several realities when they consider accepting a helicopter "risk." Flight training in helicopters is a relatively high risk activity — Helicopter flight training requires that the student pilot perform maneuvers on the edge of their abil- ity. Having experienced flight instructor on board is crucial not only to training the student pilot the skills and judgment necessar y to operate the helicopter, but also prevent accidents during training. Helicopters operate in unforgiving f light environments — Helicopters fly and hover close to the ground, oper- ate from off-airpor t sites and often near obstacles. The threat of striking an object with a rotor, operating with low ceilings and visibility, and division of pilot's attention to systems inside and outside the cockpit add to risk factor. Repairs can be expensive — A friend of mine uses a simple budget when calculat- ing the costs of repair on his helicopter. "Small com- ponents are $1,000, larger components are $1,000 x 10, then multiply the sum by 10, then multiply …" Well, you get the idea. With thousands of par ts on a helicopter that may be damaged in an accident, repairs can be extremely expensive. In many cases, the manufac- turer stipulates that airframe components are not field repairable and must be replaced if damage is even suspected. The cost for par ts, and the labor to repair and install, can be shouldered by the insur- ance company in the event of a claim. A partial loss is uncommon — The large amount of energy and moving par ts which are characteristic of helicopters typically results in severe damage to the helicopter. Physical damage claim payments are often for the total amount the helicopter was insured for. There are many other factors that contribute to the overall under writing risk equation during the evaluation process. Overall pilot experience in rotor- wing, and in the specific make and model helicopter being flown weigh heav y on the under writer's pen when calculating premiums. Accident rates impact the helicopter under writing process more than most. Since there are not as many 'units' to spread the risk, the insurance premises Law of Large Numbers doesn't apply. In fact, there are more automobiles in an average suburban city than helicopters in the entire USA. When a significant accident occurs, the ripple effect can be felt through the entire helicopter under writing community. In summar y continued emphasis on quality main- tenance to reduce the mechanical risk, frequent training to maintain proficiency, and standard opera- tional procedures will all help to minimize the risk of operating these thrilling machines. ROTORCRAFT UNDERWRITING There are many factors that contribute to the overall underwriting risk equation during the evaluation process Overall pilot experience in rotorwing, and in the specific make and model helicopter being flown weigh heavy on the underwriter's pen when calculating premiums. STEVE BRUSS is president of Wings Insurance, an independent aviation insurance broker headquartered in Minneapolis, MN. Steve has 22 years' experience in aviation insurance, and is also a licensed Commercial pilot and flight instructor. He can be reached at sbruss@ wingsinsurance. com or by calling (952) 641-3140; www. wingsinsurance. aero .