How to Apply For Federal Aviation Administration (FAA) Non-Premium War Risk Hull and Liability Insurance
Information for the Insurance Applicant
The FAA, under Section 44305 to Chapter 443 of Title 49 of the United States Code, is authorized to issue insurance, without premium to air operators engaged in operations that the President decides are necessary in the interest of air commerce, or national security, or to carry out the foreign policy of the United States.
The FAA has developed a war risk insurance policy for hull and liability insurance that is issued in and becomes effective upon fulfillment of the following conditions: 1) the Department of Defense requests non-premium insurance from the FAA, 2) the FAA agrees to provide insurance, 3) the FAA notifies the operator of effective coverage. The notice designates an exact time frame the policy is effective, or in some cases specifies coverage for a particular mission and conditions.
In order to conduct insurance business with FAA, an air operator must agree to use the online Aviation Insurance Data Management System (AIDMS). The air operator will sign and return a Memorandum of Agreement (MOA) for the use of the system, which allows the FAA to manage the Aviation Insurance Program and provides each air carrier access to its relevant documentation.
There are seven (7) steps to obtain FAA non-premium war risk insurance:
- The air operator completes the application.
- A person authorized to bind the air operator completes the online component of the application, starting with the steps below.
- The applicant will receive an email confirmation that the application has been submitted.
- FAA reviews the submission and, if the application is approved, the air operator will receive, by email, PDF copies of the MOA and of the application with the operator's information filled out.
- The air operator signs and returns to FAA
- Two (2) original MOAs to agree to do business electronically;
- One (1) signed application.
- The FAA reviews the submission and provides the air operator with access to the AIDMS.
- The air operator uploads into the online data system:
- Its fleet information, which is the "Schedule of Aircraft" that are to be insured.
- An electronic copy of the operator's current all risk aviation insurance policy.
- The air operator must pay a one-time registration fee of $575 per aircraft. This is done through electronic funds transfer only. Once the air carrier has entered its aircraft into the data system, an invoice will be generated with payment information.
- FAA issues the Policy electronically through the AIDMS and informs the operator that their policy is available in the AIDMS.
Before you begin the application process, please review the sample MOA to ensure you have all the information necessary to bind your company.