Insurance Premiums from Grounding Aircraft  

Generally speaking, you can obtain a ground credit on your insurance premium after a minimum period of time.  However, check your policy because some companies only provide Lay-Up Credits due to maintenance issues, and not due to an economic reason like the shutdown.

Medical Certificates that Expire During the Shutdown

The FAA stated that it is not in the public’s interest to maintain the requirement of an FAA Medical examination for pilot and flight engineers with expiring medical certificates during the shutdown. Accordingly, the FAA said they will not take legal enforcement action against any person serving as a required pilot flight crew member or flight engineer when expiration of the medical certificate expires from March 31, 2020 through June 30, 2020.

If this situation applies to you, keep in mind the FAA’s position doesn't automatically provide the same exception to your insurance policy.  While some underwriters are going along with the FAA, it is required to get an exception directly from the underwriter.  Please contact us if this situation applies to you and we will seek an exception for you.
Flight Review or Training that Expire During the Shutdown
Similar to the impact on Medical certificates, the FAA has addressed an extension to some training issues, but because the insurance policy is governed by contract law you might need a specific exception from the underwriter to extend your training requirement as it pertains to the policy. 

Please check the FAA website for additional changes to things like Drug-Testing requirements and other impacts to your aviation business or operation.


Small Business Administration (SBA) is providing assistance to businesses with fewer than 500 employees if you maintain your workforce.

Economic Injury Disaster Loans and Loan Advance
  • Up to $10,000 for a temporary loss of revenue.
  • Funds will be made available within three days of a successful application, and this loan advance will not have to be repaid.
Paycheck Protection Program 

Beginning April 3, 2020 through June 30, 2020 you can apply for a low cost (now 1.0% fixed interest) and potentially forgivable loan backed by the SBA.  The loan is intended to cover 8 weeks of payroll costs plus 25% for rents and utilities.  The loan will be made through your bank, but due to the quick nature of the program and high demand there may be a delay getting this completed.  Check your bank’s website for the latest information.  More information can be found on
The bill provides additional stimulus, including Business Tax Provisions and an Economic Stabilization Fund and Holland and Knight have put together an excellent resource page about these programs that focus more on Air Carriers, Airport, and Airline Contracts industries,

There are many other implications, assistance, and regulations going into place.  Finance companies are waiving late fees, Health Insurance companies are allowing changes outside Open-Enrollment periods and maintaining coverage for employees who no longer meet full time hourly requirements. OSHA has workplace safety guidelines, including the requirement to record all COVID-19 incidences, just to name a few. 
The landscape of General Aviation is changing daily Due to COVID-19 and the Shutdown.  We hope this information helps navigate through these trying times. However please stay informed because the list of changes is growing every day, and this is by no means a complete list. Most importantly stay safe and healthy.
Protecting What Matters to You since 1978
Aviation Marine Insurance Services
4000 Bridgeway, Suite 101, Sausalito, CA 94965

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