Aircraft insurance, while not required, is highly recommended for aircraft owners and operators. If you’re new to general aviation insurance, it’s a good idea to familiarize yourself with the basics of insurance for airplanes. Lucky for you, this article covers the basics of plane insurance.
Aircraft Insurance Brokers vs. Providers
An aircraft insurance provider is the person who actually carries the risk and pays the claim. On the other hand, aircraft brokers source and arrange the best insurance coverage and pricing options. Brokers can offer customers insurance advice, insurance certificates, and confirmation of insurance coverage.
Be Aware of Insurance Policy Options and Requirements
Most standard aircraft insurance policies cover passenger, hull, and third-party liability coverage. With that in mind, it’s important to know that malicious damage and other situations may require additional coverage. Additionally, you can arrange for personal accident coverage.
When signing up for an insurance policy, the provider will need to know all details of your operations. This includes full information on all aircraft under your name as well as descriptions of crew experience and training. Additionally, you will be required to inform the provider of any previous insurance claims.
Aviation Insurance Best Practices
When looking into insurance policies, it’s important to trust your gut. If you feel even slightly unsure about the deal you’re getting, you should consider continuing to shop around. Additionally, it can be beneficial to be a part of a larger group policy. When insurance markets start to harden, it can be helpful to be able to take advantage of bulk buying power.
What Exactly Does Aircraft Insurance Cover?
While insurance policies depend on a number of factors, most insurance policies cover things that could go wrong while flying or on the ground. Insurance policies may include:
- Hull loss while taxiing
- Hull loss not in motion (things like fire, theft, and vandalism)
- Hull loss in flight (during ground operation, while parked or stored, and while in flight)
- Passenger liability
- Environmental damage liability
- Terrorism and war insurance
- Public liability
Despite the fact that according to the International Air Transport Association, more than 3.5 billion people flew safely on 37.6 million flights in 2015, accidents do happen. It could be in your best interest to invest in aircraft insurance to ensure the safety of yourself, any crew or passengers, as well as your aircrafts.