hot air balloon insurance the schantz agency po box 51591 jacksonville beach, fl 32240 904-246-1018

HOT AIR BALLOON HOT AIR BALLOON INSURANCEINSURANCE

The Schantz Agency

PO Box 51591

Jacksonville Beach, FL 32240

904-246-1018

www.theschantzagency.com


RATING FACTORSAnnual Hours

Commercial HoursNumber in Flight

LimitsValues

Basket CapacityCredits/Debits

HOTAIR BALLOON HOTAIR BALLOON INSURANCEINSURANCE

UNDERWRITING FACTORS Hours in type, experience for All Pilots

Use & Location Prior claims/incidents

Age of system Annual certification

Payment History DUI’s, etc.


COVERAGE ISSUESOne in Flight

When & Where does Aviation Liability/Passenger Liability begin and end?When & Where does hull begin and end?

Timely reporting of claimsOccurrence Coverage Vs. Claims Made

Separate Limits?


COVERAGE ISSUESWho is a Named Insured?

Territory/Foreign CoverageNegligence

Contractual Liability ExcludedHold Harmless


LIABILITYLiability covers A) Aviation Liability and

B) Passenger Liability.Some policies have a maximum occurrence

limit usually $1,000,000 and passenger liability is a sub limit within.

Schantz Policy has two limits of liability—one for each A & B.

Legal Expenses. Unlimited, Separate from Liability


MEDICAL PAYMENTS

Provides first aid coverage for immediate use at time of an accident

No fault approachLimit is usually $5,000 per personSeparate from the liability limit

HOT AIR BALLOON HOT AIR BALLOON INSURANCEINSURANCEHULL COVERAGE

Provides “all risk” coverage subject to certain exclusions.

Separate limits for envelope, basket and accessories.

Deductibles of $500 and up, usually $1000. Settlement is based on “Stated Valued Coverage”

or “Actual Cash Value” ( Check Policy)


OTHER COVERAGESAdditional Insureds

Adds other parties to your policy to protect them from loss due to your negligence.

Limits remain the same.Does not broaden policy.

Does not cover AI’s negligence.


COMMON EXCLUSIONSWar, TerrorismWear & Tear, Mechanical Defect, MoldWarranty Violations: Pilot, # of Pax by AX

Size, Currency/Airworthy Workers Comp***Liability assumed under contract***

HOTAIR BALLOON HOTAIR BALLOON INSURANCEINSURANCE

YOUR MAJOR COVERAGESAviation LiabilityPassenger Liability

Defense CostsMedical Payments

Hull Coverage


ACCIDENT DATA 1990 – 2009 342 NTSB Reported Accidents 30 Fatal Accidents, 46 Deaths Fatal Accidents Causes:

• Power Line 53.3% (16)

• Hard Landing 10.0% (3)

• Fuel Line 6.7% (2)

• Crew Error 6.7% (2)

• Equipment 6.7% (2)


Fatals by State New Mexico 9 Colorado 6 California 5 Arizona 4 Ohio 4 MO, TX, OK, LA, IA----2 each NH, FL, OR, NV, WV, GA, KY, PA---1 each.


NTSB REPORT SUMMARY LAST FIVE YEARS

2005 2006 2007 2008 2009

# of Reports

15 8 14 14 12

Fatal 2 0 2 3 0

Serious Injury

13 5 11 19 12


# of Claims By # of Pax $$$$ %

14 7-10 $3.2 Million 68%

37 0-6 $1.5 Million 32%

By % Comm.

11 51%+ $3.1 Million 65%

40 0-50% $1.6 Million 35%

17 50% only $1.1 Million 25%

Based on Claims Submitted 2005-2009Top Ten: PA, NM, CA, NH, AZ, MA, CO, IL, MI, MO

HOT AIR BALLOON INSURANCEHOT AIR BALLOON INSURANCEClaims other than Bodily InjuryClaims other than Bodily Injury

•Fan Damage•Power Company Reimbursement

•Hit Farmer’s Sprinkler•Hit Car

•Water Damage to Pax Camera•Stolen Instruments

•Spooked Horse/Cow•House Fire Burned HAB

•Helicopter Recovery of HAB•Arson to Trailer, Burned HAB

•Damage to TV Camera.•Grass Fire, Crop Damage

•Theft of Uprights


CLAIM ISSUES

Timely Reporting

Communication With Passengers

Waivers

Question of Liability


NON OWNED BALLOONS

A unique coverage for festival organizers, balloonmeisters and sponsors

Covers their negligence as regards non owned balloons


THANK

YOU!

hot air balloon insurance the schantz agency po box 51591 jacksonville beach, fl 32240 904-246-1018

Documents

b passenger liability

aid coverage

limits of liabilityone

schantz policy

claims madeseparate

risk coverage subject

stated valued coverage

power line