Aircraft Hull Insurance

What Does Aircraft Hull Insurance Mean?

Aircraft hull insurance provides coverage for physical damage to an airplane, whether the damage occurs on the ground or during flight. This coverage includes all equipment used to operate the aircraft. The premium is typically determined by the value of the plane.

Insuranceopedia Explains Aircraft Hull Insurance

Aircraft hull insurance covers physical damage to the aircraft, with the insurer paying for the repair or replacement costs minus a deductible paid by the aircraft owner. It also covers any device or equipment essential for operating the plane. The concept is similar to how commercial marine insurance protects the physical structure of a ship or boat, except the asset in question is in the air rather than on the water.

However, the insurance includes several exceptions, such as damage caused by flying outside the aircraft’s operational limits, war, and wear and tear. Most owners and operators carry hull coverage as one part of a wider business insurance program that also addresses liability and ground risks.