No pilot ever expects to have an accident. But when it happens, a hard landing, runway excursion, bird strike, or hangar incident, it can result in significant damage, legal exposure, and emotional stress.
In those moments, your airplane accident insurance, better known as your aircraft owner’s insurance policy, becomes the most important financial protection you have.
The quality of your coverage determines whether your aircraft is quickly repaired and you’re back in the air within weeks, or whether you face months of financial and legal headaches.
Since 1977, BWI Aviation Insurance has specialized exclusively in aviation coverage, helping more than 10,000 aircraft owners nationwide recover from aircraft accidents and claims. With nearly five decades of experience and 800+ five-star reviews, BWI is one of the nation’s most trusted aviation insurance agencies.
This guide explains how airplane accident insurance works, what it covers, and how to make sure your policy truly protects you when the unexpected happens.
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What Is Airplane Accident Insurance?
When aircraft owners talk about “airplane accident insurance,” they’re referring to the insurance coverage that responds when an airplane is damaged or destroyed in an accident.
That protection comes from two key components of your aircraft owner’s policy:
1. Hull Coverage – Pays to repair or replace your aircraft after an accident.
2. Liability Coverage – Protects you if your aircraft causes injury or property damage to others.
Together, these coverages form the foundation of airplane accident insurance for aircraft owners, safeguarding both the airplane and the owner’s financial wellbeing.
Why It’s Critical for Every Aircraft Owner
Accidents can happen to any pilot, even the most experienced ones. A gear-up landing, prop strike, or hangar mishap can easily cost tens or hundreds of thousands of dollars.
Without proper accident coverage, those costs come directly out of your pocket.
Real examples seen at BWI:
– A Cirrus SR22 experienced a gear-up landing, $90,000 in damage, fully covered under hull insurance.
– A hangar fire destroyed a Beechcraft Bonanza and two neighboring aircraft, total loss payout of $430,000.
– A Cessna 182 slid off a wet runway, damaging the prop and wing, $45,000 repair fully covered.
In each case, the pilot’s insurance made recovery possible, financially and operationally.
How Airplane Accident Insurance Protects You
1. Hull Coverage – The Core of Accident Protection
Hull coverage pays for physical damage to your aircraft from nearly any cause, including collisions, gear-up landings, wind or hail damage, hangar fires, and more.
Coverage options:
– Ground Not-in-Motion: Covers incidents while parked or stored.
– Ground in Motion: Adds taxi coverage.
– In-Flight: Full protection for all flight phases.
Coverage basis:
– Agreed Value: Pre-set payout if totaled.
– Actual Cash Value: Market value minus depreciation.
BWI Tip: Always choose Agreed Value coverage. It guarantees a clear payout if your aircraft is destroyed, no negotiations or disputes.
2. Liability Coverage – Your Legal Safety Net
If your aircraft accident causes injury, death, or property damage, liability coverage protects you financially and legally.
It covers:
– Passenger injuries or fatalities
– Damage to other aircraft or airport property
– Legal defense and court costs
Common limits include:
– $1,000,000 per occurrence / $100,000 per passenger (standard).
– $1,000,000 “smooth” with no per-passenger limit (preferred for higher-value aircraft).
– Higher limits ($2M–$5M) for turbine or business use.
Liability claims are rare but severe. Even a minor incident involving injury can lead to lawsuits costing hundreds of thousands of dollars.
3. Medical and Supplemental Coverages
Many owner policies include medical payments coverage ($5,000–$25,000 per passenger), personal effects coverage for damaged luggage or headsets, and search and rescue or emergency expenses.
How the Claims Process Works After an Airplane Accident
When an accident occurs, knowing what to do ensures a smoother claims experience.
Step 1: Prioritize safety and reporting.
Ensure all passengers are safe and report the incident to authorities if required.
Step 2: Contact your insurance broker immediately.
At BWI, our claims specialists notify the carrier, open your claim file, and begin coordination with adjusters right away.
Step 3: Document everything.
Take photos of the aircraft, record the sequence of events, and gather logbooks, maintenance records, and pilot certificates.
Step 4: Adjuster inspection.
The insurer assigns an aviation adjuster to assess damage, estimate repair costs, or determine if the aircraft is a total loss.
Step 5: Repair authorization or payout.
If repairable: The insurer covers parts, labor, and transport to an approved shop.
If totaled: You receive the agreed value payment promptly (minus any deductible).
Step 6: Settlement and return to flight.
Once repairs are completed, your aircraft is test flown and back in service.
BWI’s advantage: Our claims team works directly with underwriters and shops to speed up authorization and reduce downtime.
Common Causes of Aircraft Accident Claims
– Hard / Gear-Up Landings – $60,000–$100,000
– Prop Strikes – $15,000–$40,000
– Runway Excursions – $25,000–$80,000
– Hangar Fires – $200,000–$1M+
– Bird Strikes – $10,000–$50,000
– Ground Collisions – $5,000–$25,000
Even small mishaps can become expensive repairs.
How to Ensure You’re Fully Protected
1. Set the Right Hull Value – Insure for true market value.
2. Review Pilot Endorsements – Verify that every pilot meets policy experience requirements.
3. Confirm Liability Limits – At least $1,000,000 total; “smooth” coverage if carrying passengers.
4. Check Use Clauses – Match your policy’s listed use to your real operations.
5. Keep Maintenance and Logs Updated – Complete logs prevent delays and disputes.
6. Work With an Experienced Broker – Specialized brokers like BWI handle claims advocacy and renewal strategies.
How Much Does Airplane Accident Insurance Cost?
Airplane accident protection is included within your overall aircraft owner’s policy, not sold separately.
Average annual premiums (for complete owner’s coverage including accident protection):
Cessna 172 / Piper Archer – $1,200–$2,400
Cirrus SR22 – $2,800–$4,800
Beechcraft Baron – $3,000–$7,000
King Air C90 – $6,000–$12,000
Citation Jet – $10,000–$25,000
Premiums vary by pilot experience, aircraft value, location, storage, and claim history.
What Happens If You Don’t Have Proper Accident Coverage
Without adequate hull and liability insurance, an accident can create severe financial consequences:
– You pay out-of-pocket for aircraft repairs or total loss.
– You could be liable for injury or property damage lawsuits.
– Your lender could declare loan default for uninsured loss.
– Future premiums may increase due to uncovered losses.
How BWI Handles Accident Claims Differently
At BWI, we act as your advocate, not just your policy writer.
Our claims team:
– Contacts the carrier immediately after your call.
– Coordinates with adjusters and shops to expedite inspections.
– Tracks progress and ensures fair settlement.
– Communicates with lienholders and airports if needed.
This full-service approach is why thousands of pilots nationwide trust BWI to handle their most difficult moments with professionalism and speed.
Why Choose BWI Aviation Insurance
Experience, expertise, and trust.
Since 1977, BWI Aviation Insurance has been helping aircraft owners protect their aircraft, passengers, and finances from the unexpected.
BWI by the numbers:
– Nearly 50 years of aviation insurance experience.
– Over 10,000 aircraft insured nationwide.
– 800+ five-star Google reviews.
– Offices in California and Alaska.
– Same-day quotes for most piston aircraft.
We represent every major aviation underwriter in the U.S., including Global Aerospace, Old Republic, Starr, USAIG, and more, ensuring you always have access to the best coverage and pricing.
Conclusion
Accidents can’t always be prevented, but financial loss can.
Airplane accident insurance gives aircraft owners peace of mind that if the worst happens, their aircraft, passengers, and assets are protected.
Whether it’s a minor hangar scrape or a total loss, your insurance policy determines how fast you recover and return to flight.
At BWI Aviation Insurance, we’ve spent nearly five decades helping aircraft owners navigate that recovery with clarity, confidence, and care.
Visit www.bwifly.com or call 800-666-4359 to review your airplane accident insurance coverage today.
BWI Aviation Insurance, protecting pilots, aircraft, and peace of mind since 1977.
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