Aviation Insurance

What Does Aviation Insurance Mean?

Aviation insurance is a policy that provides property and liability coverage for aircraft. It covers losses resulting from aviation risks associated with the maintenance and use of aircraft, including property damage, loss of cargo, or injury to people. This type of insurance protects both aircraft owners and operators from unforeseen losses. It works in much the same way as commercial marine insurance does for vessels, combining hull coverage for the craft itself with liability coverage for the people and property around it.

Aviation insurance is also referred to as aircraft insurance.

Insuranceopedia Explains Aviation Insurance

Many states require aircraft owners and operators to purchase coverage that provides third-party liability, which would cover either part or all of the medical expenses for individuals injured when the aircraft operator is found responsible for an accident. This requirement is similar to the third-party protection businesses get from general liability insurance, though aviation policies carry far higher limits because of the size of the potential claims. The premium charge depends on the type of aircraft being covered, such as experimental, standard, or vintage aircraft. Other expenses that aviation insurance may cover include the costs of search and rescue operations, personal injuries sustained while operating the aircraft, and expenses incurred due to emergency landings. For operators whose exposure exceeds the limits on a standard aviation policy, a commercial umbrella policy can add another layer of liability protection on top.