The responsibility carried by a professional pilot cannot be overstated. Every takeoff places lives, assets, and trust in the hands of the individual in the cockpit. To protect that responsibility, the FAA enforces strict medical standards - and even a minor health issue can result in immediate and indefinite grounding.
For pilots, the result is more than an inconvenience. A sudden loss of license can halt income overnight, disrupt seniority and benefits, and in many cases accelerate early retirement - especially after age 50. And unlike many professions, there’s no alternative income stream while grounded. No flying privileges means no work.
The most common reasons for pilot grounding are often unexpected and unavoidable, including:
Even when a pilot feels physically capable, falling outside FAA medical guidelines can still mean loss of license.
Traditional disability insurance often falls short for pilots. “Own occupation” definitions may not fully protect aviation duties, and pilots may not qualify as “disabled” even when their license is revoked. Coverage amounts may also be insufficient to replace a pilot’s full income.
Loss of License Disability Insurance is specifically designed for aviation professionals. This coverage addresses the unique risks pilots face and provides financial protection when FAA medical certification is lost - even temporarily.
Download Loss of License One-Pager
Key features typically include:
Loss of License Disability Insurance is well-suited for:
Consider a pilot who slipped while carrying a box down the stairs, suffering a knee injury that led to five months of grounding - and additional weeks waiting for FAA reinstatement. Although he eventually recovered, his Loss of License insurance paid benefits through the entire grounding and recertification period, allowing him to cover household expenses and support his family.
Group Guaranteed Issue options can help employers protect payroll obligations, improve retention, and simplify underwriting - often requiring only proof of income, a medical certificate, and an FAA license.
This post was adapted from the published article as seen in Insurance Journal magazine written by Joseph Ferraro, Partner at Exceptional Risk Advisors. You can read the full article here.