Owning a private jet has undeniable benefits – taking off when you want, avoiding stressful, crowded airports, and enjoying a luxury experience at 30,000 feet. But the cost of full ownership can be prohibitive, especially if you don’t fly often enough to justify the significant upfront and ongoing investments. That’s why fractional aircraft ownership has gained popularity.
Owning a share in a private jet is a pivotal financial decision and lifestyle choice. Before buying into a large jet or a light aircraft, you should understand how fractional ownership works and what insurance coverage you need.
What Is Fractional Aircraft Ownership?
Fractional ownership is a model in which multiple people or businesses share an aircraft. Each owner purchases a “fraction” of the jet – typically ranging from half to one-sixteenth – with a corresponding share of annual flight hours.
A management company handles operations, inspections, crew, and scheduling. This structure gives you the flexibility of private aviation without the daily responsibilities of managing and maintaining an aircraft.
Advantages of Fractional Ownership
People choose fractional ownership for multiple reasons.
- Lower upfront cost: Compared to buying an entire aircraft, fractional ownership dramatically reduces the acquisition price and long-term financial risk.
- Predictable budgeting: Most fractional programs offer fixed hourly rates, simplifying financial planning for frequent travelers.
- Turnkey management: The management company takes care of scheduling, inspections, pilot hiring, maintenance, and compliance – leaving you to enjoy the flight with fewer worries.
- Fleet flexibility: Many providers allow fractional owners to access different aircraft within their fleet, giving you the option to choose the features and amenities you want for each trip.
- Access to luxury travel: You get the convenience, privacy, and comfort of private aviation at a more affordable cost.
Insurance Considerations for Fractional Owners
Even if you only own part of the aircraft, your investment still requires comprehensive protection. Here’s what to know about insuring fractional jet ownership:
1. Understand Who Holds the Policy
In most cases, the management company will carry a master insurance policy covering the aircraft and all fractional owners. However, this may not fully protect your financial interests or liability exposure.
2. Review the Liability Limits
Verify that the master policy includes:
- Adequate liability coverage per passenger and per occurrence
- Personal injury and property damage protection
- Legal defense in the event of a lawsuit
3. Ensure Coverage for Named Insureds
Being a named insured or additional insured on the policy covers you in the event of an accident or claim.
4. Consider Supplemental Insurance
Depending on your financial situation and risk tolerance, you may want to carry:
- Excess liability insurance to extend protection beyond the limits of the master policy
- Non-owned aircraft liability insurance for times you charter aircraft outside the program
- Loss of use or loss of share value coverage to protect your investment in case of major damage or grounding
Fly Confidently – No Matter Your Ownership Share
Ingram Aviation Insurance’s exclusive focus on the aviation industry sets us apart. We’ve provided high-quality, tailor-made aircraft insurance solutions for over a decade. Whether you’re a first-time fractional buyer or upgrading your ownership share, we make insurance as clear as a cloudless sky.
- Fractional ownership expertise: We understand how co-ownership models work and how to structure policies around them.
- Fast underwriting: Our established industry relationships allow us to secure competitive quotes without delay.
- Nationwide service: Wherever you live or fly, we’ve got you covered.
- Comprehensive coverage: From nose to tail, we offer insurance that protects your aircraft, liability, and lifestyle.
Fractional ownership is a wise way to enjoy the benefits of private aviation without taking on the full burden of cost and logistics. Contact us today to learn more about your coverage options as a fractional aircraft owner. We’ll help you evaluate your needs, identify potential gaps, and maximize your investment.