Loss of License Insurance for Pilots
Loss of License Insurance is specialized coverage designed to help protect professional pilots whose ability to earn an income depends on maintaining the medical certification required to perform their flying duties.
A medical condition may prevent a pilot from maintaining the required medical certification even when they remain capable of working in another occupation. Loss of License coverage can help address the unique financial risk associated with being unable to continue working as a professional pilot.
What Is Loss of License Insurance?
Loss of License Insurance is designed to provide financial protection when a qualifying medical condition results in the loss or suspension of the medical certification required for an insured pilot to perform their professional flying duties.
For a professional pilot, maintaining the appropriate medical certification is directly connected to their ability to continue earning income from flying.
Depending on the policy, benefits may be available when the insured satisfies the specific requirements for a covered loss of license.
Why Is Loss of License Insurance Important for Pilots?
Pilots face a unique occupational risk because an illness or medical condition does not necessarily have to prevent them from performing all types of work to affect their career.
A condition that may have relatively little occupational impact on someone working in another profession could potentially prevent a pilot from satisfying the medical requirements necessary to continue flying professionally.
For someone whose income and career depend on flying, the financial consequences can be significant even if they remain capable of working in another occupation.
How Is Loss of License Different From Disability Insurance?
Traditional Individual Disability Insurance and Loss of License Insurance can address similar risks, but they are not necessarily the same coverage.
Individual Disability Insurance generally determines eligibility for benefits based on the contractual definition of disability contained within the policy.
Loss of License Insurance may specifically address the loss or suspension of the medical certification required for the insured to continue performing professional flying duties.
Since the triggers for benefits may differ, professional pilots should understand how each policy defines a qualifying claim rather than assuming that losing a medical certification automatically satisfies the requirements of every disability insurance policy.
Who Should Consider Loss of License Insurance?
Loss of License coverage may be relevant for individuals whose earned income depends substantially on their ability to fly professionally, including certain:
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Airline pilots
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Corporate pilots
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Charter pilots
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Commercial pilots
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Other professional aviators
Eligibility and available coverage depend on the pilot's specific duties, medical certification requirements, income, existing coverage, and applicable underwriting guidelines.
What Should Pilots Consider When Reviewing Coverage?
When evaluating income protection for a professional pilot, important considerations may include:
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Required medical certification
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Current aviation duties
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Earned income
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Employer-provided disability benefits
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Definition of disability
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Definition of a covered Loss of License
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Benefit amount and benefit period
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Exclusions and limitations
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Medical and occupational underwriting
The most important consideration is understanding what actually triggers benefits under the contract.
Frequently Asked Questions
What is Loss of License Insurance for pilots?
Loss of License Insurance is specialized coverage designed to provide financial protection when a qualifying medical condition results in the loss or suspension of the medical certification required to continue performing professional flying duties, subject to the terms of the policy.
Is Loss of License Insurance the same as Disability Insurance?
No. While both can help protect a pilot's income, traditional disability insurance generally bases eligibility on the policy's definition of disability, while Loss of License coverage may specifically address the loss of the medical certification necessary to fly professionally.
Does losing a pilot medical certificate automatically qualify someone for benefits?
Not necessarily. Eligibility depends on the specific policy language, reason for the loss or suspension, applicable exclusions, and other requirements of the coverage.