Rotors in motion or not? Understanding helicopter insurance coverage

Once upon a time, a phone conversation with an aviation insurance broker went a little something like this:

“So, the helicopter was being started. The PIC stated he made sure everything was ready to go and proceeded with the start sequence. The eyewitnesses behind the helicopter (sitting in other helicopters) reported seeing a lengthy flame come out of the exhaust pipe, along with some glowing embers or other items…

“When the pilot realized he was experiencing a very high side failure (no, it wasn’t finger problems), he immediately shut off the throttle — no change — then used the emergency fuel shutoff and eliminated a further catastrophe.”

The rest of the exchange with the broker was a typical incident/accident type of conversation. Then the following question arose: “Were the rotors in motion?”

The response: “No, they weren’t. But one of the eyewitnesses said they saw the main rotor blades move. Yes, they may have, but only momentarily and not due to any perpetual power.”

This conversation grew legs as the days and weeks went on. Brokers discussed it with underwriters, who discussed it with adjusters, and with lawyers, etc.

The final discussion ended with: “Well, you’re right. Technically the rotors were not in motion. But if your claim goes ahead with rotors not in motion, then eventually you will pay the difference between the rotors-in-motion and rotors-not-in-motion deductible.”

This is the old “pay me now or pay me later” scenario.

The AI definition of “rotors in motion versus rotors not in motion” is: “In the context of aviation insurance, ‘rotors in motion’ refers to the period when the aircraft’s rotors are actively rotating, typically during flight or taxiing. This is the primary coverage period for aircraft insurance policies, as it encompasses the most common scenarios where the aircraft is in motion and subject to physical damage.

“On the other hand, ‘rotors not in motion’ refers to the time when the aircraft’s rotors are not actively rotating, such as when the aircraft is on the ground, not operating, or undergoing maintenance. This period is typically excluded from coverage, meaning that physical damage sustained during this time is not covered by the insurance policy.”

Understanding these definitions is crucial for aircraft owners and operators to ensure they have adequate coverage during different operational phases.

I encourage you to talk to your broker and ask what your insurance company/underwriter’s definition is of rotors in motion versus not. I bet they won’t want to answer that question!

I will describe what the causal factor of this incident was in another article.

Onward and upward!