Your Aircraft. Your Life. Are You Covered?

When most aircraft owners think about insurance, their minds go straight to hull value.

“What’s my plane worth?”

“What’s the deductible?”

“How much will it cost to fix if I scrape a wing?”

Important questions? Absolutely. But not the most important.

Because in aviation, the biggest financial risk isn’t usually your aircraft. It’s the liability you carry every time you take off with a passenger, fly over a neighborhood, or taxi past another aircraft.

In this blog post, we’re going to break down what aircraft liability insurance really means, what most pilots misunderstand, and how to make sure you’re covered for the moments that matter most.

What Is Aircraft Liability Insurance?

Liability insurance protects you if your aircraft causes injury to a person or damage to property. It pays for:

Bodily injury to passengers or people on the ground
Damage to other aircraft, hangars, vehicles, or buildings
Legal defense costs if you’re sued for negligence

Most policies offer a base limit like $1,000,000 total liability per occurrence, often with a per-passenger sublimit, like $100,000 or $250,000.

This means that while the total payout might be up to $1M, each passenger may be limited to a much smaller share. And in an accident involving injuries or death, those sublimits matter. A lot.

Real Story: The Runway Overrun That Cost $180,000

A BWI client once landed long at a high-elevation strip. He veered slightly off the runway and clipped a tied-down aircraft.

No one was hurt. But the damage? $180,000.

Thankfully, he had a $1M liability policy with no sublimits. The insurer covered the entire cost.

If his liability limit had been lower—or if the sublimit excluded third-party aircraft—he would’ve paid tens of thousands out of pocket.

That one detail saved him from a financial disaster.

What Pilots Often Get Wrong About Liability Coverage

1. Thinking hull is more important.

Your aircraft is replaceable. But a lawsuit? That can jeopardize everything.

2. Assuming $100,000 is “plenty.”

Medical bills, lawsuits, and property damage add up fast. $100k per passenger won’t go far in a serious accident.

3. Forgetting about ground risks.

Accidents don’t just happen in the air. Taxiing, fueling, towing—all are potential sources of damage or injury.

4. Not understanding sublimits.

That $1M policy might only provide $100k per passenger. Make sure you ask your broker what’s really covered.

5. Not reviewing limits yearly.

What was sufficient 5 years ago may no longer make sense in today’s legal or medical environment.

How to Choose the Right Liability Limits

There’s no one-size-fits-all answer, but here are some guidelines:

Fly with passengers regularly? Look for policies with no sublimits or equal limits per passenger.
Own a higher-value aircraft? Consider higher liability to reflect your net worth and exposure.
Fly over dense areas? Ground risk increases. Bumping to a $2M or $5M policy may be worth it.
Don’t fly often? Liability exposure still exists. Consider at least $1M total with $250k per passenger.

Ask yourself: If the worst-case scenario happened today, would your coverage protect you fully?

Why Your Broker Matters More Than Ever

Aircraft liability insurance isn’t just about picking a number. It’s about building a profile that underwriters trust—and getting access to policies that balance coverage and affordability.

At BWI, we: