Like car insurance, aviation insurance is critical to cover you and other passengers and any damages to the aircraft itself. Aviation insurance provides coverage for losses related to aircraft and aviation activities.
In a nutshell, insurance protects aviation businesses and individuals against financial losses that may result from accidents, damage to the aircraft, or liability claims. So here is a closer look at what you’ll get when you purchase aviation insurance.
Hull Insurance
Aircraft hull insurance covers any damage to the aircraft, including damage caused by accidents, theft, vandalism, and natural disasters. The coverage also includes the aircraft’s airframe, engines, and other equipment. Depending on the specific case, the insurance policy may also cover the cost of repairs or replacement of damaged parts or equipment.
You can purchase hull insurance on an “all-risk” basis, which means that it covers all possible types of damage, or on a “named-peril” basis, which covers only specific types listed in the policy. All-risk coverage is more comprehensive and provides more excellent protection but is also more expensive.
You can also include “war-risk perils” for an additional premium.
The cost of aircraft hull insurance depends on various factors, including the value of the aircraft, its age, the type of aircraft, and the pilot’s experience. In addition, premiums for aircraft hull insurance are higher than other types of insurance due to the high cost of aircraft repairs and the risks associated with flying.
Aircraft Liability Insurance
Aircraft liability insurance covers any bodily injury or property damage caused by an aircraft during operation, including damage caused by collisions, crashes, or other accidents. The coverage includes the aircraft owner, operator, pilot, and onboard passengers. The insurance policy may also cover legal fees and other expenses with a liability claim.
You can purchase aircraft liability insurance on a per-occurrence basis, which will cover a specific incident or accident. You can also choose to purchase the insurance on a claims-made basis. A claims-made basis provides coverage for claims made during the policy period, regardless of when the incident occurred.
The cost of aircraft liability insurance will depend on various factors, including the aircraft’s value, the aircraft type, the pilot’s experience, the number of passengers, and the level of coverage required. Premiums can be high, especially for larger aircraft and those with a history of accidents or incidents. You may also have rate surcharges if you are using your aircraft for charter flights, like Stratos Jet Charters.
Approved Pilot Cause
The approved pilot clause specifies who is authorized to operate the insured aircraft and who is authorized to act as second in command. This clause reduces the risk of accidents and minimizes the insurance company’s liability by ensuring that only qualified and experienced pilots are allowed to fly the aircraft.
Under the approved pilot clause, the insurance policy will specify the minimum qualifications a pilot must have to be authorized to fly the aircraft. These qualifications may include a certain number of flight hours, a specific pilot’s license, and experience flying the aircraft that is being insured. The more experienced the pilot, the lower the premium.
In some cases, the approved pilot clause may also include requirements related to training and supervision. For example, the policy may require that pilots receive regular training and undergo regular proficiency checks to maintain their skills and knowledge.
Approved Use Insurance
This type of insurance is geared toward non-owners of aircraft. Approved use insurance usually covers low-risk operations like private, pleasure, and business use. It may also cover operations, such as flight training and aircraft rental. However, the insurance company must approve the specific use of the aircraft.
The insurance policy can specify restrictions or limitations on the approved use of the aircraft, such as the maximum number of passengers, the type of terrain on which the aircraft can operate, and the maximum distance that the aircraft can fly.
Operating an aircraft is a major responsibility; you want to ensure you are fully covered from every angle. Skipping on any part of aviation insurance could put you in deep financial debt for years. It is important to carefully review your aviation insurance policy to comply with all requirements and limitations.