Executive Summary
Across three separate roundtable discussions, corporate flight department leaders and aviation directors sat down with Derrick Pfau, regional vice president at Petersen International (a coverholder for Lloyd’s of London specializing in disability and loss-of-license insurance for pilots), to work through how these policies actually function. Though the groups ranged from single-aircraft Part 91 departments to major corporate flight operations, three topics surfaced in every session: how a policy defines “occupation”—and why that single clause can decide whether a claim gets paid; why loss-of-license coverage exists to solve the delays and frustration built into traditional long-term disability (LTD) plans; and how flight departments are layering multiple policies to get pilots closer to full income replacement.
The “Own Occupation” Clause Can Make or Break a Claim
Despite its name, loss-of-license insurance has little to do with an accident or a regulatory violation. It is disability coverage triggered specifically by the loss of an FAA medical certificate, and Derrick Pfau, regional vice president at Petersen International, opened every session by clearing up that misconception. Once a pilot is grounded, the real question becomes how the policy defines the job that pilot can no longer do.
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