Aircraft Insurance: Protection on Cloud Nine
- Third-party damages that are incurred due to at-fault collisions with someone else’s property.
- Injuries or death due to the operation of the plane.
- Damages due to fire, theft, or vandalism.
In this blog
Which Businesses Need Aircraft Insurance?
- Commercial GA aircraft and fleets
- Commercial helicopters
- Very light jets
- Business aviation
- Balloons and airships
- Refuellers and repairers
- Vintage aircraft and warbirds
- Flying schools
- Medical and rescue services
Is It Necessary?
Accidents can happen while up in the air. A news report by Reuters points out that worldwide aviation-related deaths increased to 299 in the year 2020.
Aircraft insurance covers your aircraft just as commercial auto insurance covers your company automobiles. General liability insurance generally excludes any claims that occur due to maintenance or aircraft use, so getting a separate aircraft policy is a smart move for your airline business.
While most policies provide coverage for damage and losses to the aircraft, some policies also provide third-party liability coverage. Some policies cover injuries and damage to passengers and their property while on the plane. However, the coverage type and limit depend on the aircraft’s flight paths and the nature of its operation.
What Are the Different Types of Aircraft Insurance?
Here are a few different types of aircraft insurance you should know about before you purchase one:
In-flight insurance protects your airplane against damages that may occur during flight or while in storage. Therefore, it is an essential investment as aircraft are more susceptible to damage during operation.
Public liability insurance
Your aircraft could collide with public property during operation. For example, if you have any issues while up in the air, you could end up damaging property such as buildings, cars, or farms while trying to make your landing. Public liability insurance covers you for these damages.
Aircraft all-risk coverage
Aircraft all-risk coverage is a blanket coverage that covers any damage to the aircraft when grounded, taxiing, or while in-flight. It is another coverage explicitly tailored to the aviation industry.
Passenger liability insurance
More often than not, your aircraft is carrying passengers during flights. Passenger liability insurance is for any passengers who are injured or killed during an accident on your aircraft.
Ground risk hull insurance
Ground risk hull insurance covers for events like fire, theft, hangar collapse, or flooding. There are two types of ground risk hull insurance:
a) Ground Risk Hull Insurance (Non-Motion)
Ground risk hull insurance (non-motion) covers the above-named perils while it is on the ground and not operating.
b) Ground Risk Hull Insurance (In Motion)
Ground risk hull insurance (in motion) provides coverage for the same perils mentioned above while your aircraft is taxiing.
What Is the Cost of Aircraft Insurance?
Various factors determine the cost of commercial aircraft insurance. Some of these factors are listed below:
- Cost of the aircraft
- Size and intended use of craft
- Frequency of use
- Claims history
While your aircraft is up in the air, our insurance policies will have you standing firm on the ground, confident that any risks that come your way will not bankrupt your company.
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