Firms that utilize planes and other aircraft for commercial purposes are covered by aviation liability and hull insurance. Standard liability coverage does not cover aircraft.
What is hull and aircraft liability insurance?
For commercial purposes, several companies employ aircraft, jets, or helicopters. Some people only use them on rare occasions, such as for a particular project or a work-related social event. Others, such as crop-dusting enterprises and aerial mapping firms, employ planes on a regular basis.
Businesses that own and operate airplanes face particular hazards when they fly. Accidents can result in significant injuries or even death, as well as damage or destruction to the aircraft and/or other property. As a result, airplane insurance coverage is critical.
Businesses that utilize planes should not rely on their commercial general liability (CGL) insurance to protect them. The basic insurance has a broad aviation exclusion, which means that most aircraft-related claims are not covered.
Businesses should purchase aircraft insurance to protect themselves. There are types of coverage: aircraft liability insurance, hangarkeepers insurance, and hull insurance, which protects the aircraft from physical damage. They are available in a number ofvariations and may be purchased together or separately.
What is aircraft liability and hull insurance and how does it work?
Third-party bodily injury and property damage claims against an aircraft owner or operator are covered by insurers’ aircraft policies.
Coverage for Aircraft Liability
Three types of liability coverage are included in the policies:Third-party bodily harm or death that is not caused by passengers, passengers’ physical injuries or deaths, deterioration of third-party property
These coverages can be acquired separately, with each type of coverage having its own occurrence limit. Alternatively, all three might be covered by a single agreement with a single aggregate limit per occurrence, known as a “smooth limit.”
Exclusions from Liability
Some dangers may not be covered by aviation liability insurance. The following are examples of common exclusions:injuries that are expected or planned, employee bodily injury, workers’ compensation liability, contractual liability, injury or damage caused by fertilizer or other substance application, injury or damage caused by pollution, noise, or electrical or electromagnetic interference.
Hull Insurance for Aircraft
Businesses must obtain aircraft hull insurance to protect themselves against physical damage to their aircraft. Many plans include the following three types of coverage:
- Ground and flight: Cover damage to an aircraft caused by any hazard (including disappearance) that is not explicitly excluded, regardless of whether the damage happens on the ground or in the air.
- Damage while the aircraft is on the ground, whether stationary or in motion: This coverage covers damage that happens while the aircraft is on the ground.
- Damage that happens while the aircraft is on the ground and immobile is covered by this policy.
- Wear and tear, electrical breakdown, war and associated hazards (including terrorist activities), high heat (to the engine), hijacking, and seizure by a government body are generally excluded from hull coverage.
- Damage caused by fire or explosion following an accident or collision while the aircraft was in flight is excluded from both the not in flight and not in motion coverage choices.
In conclusion, aircraft liability insurance generally covers personal injuries to passengers and third parties, as well as property damage to third parties. The physical damage to the plane is covered by aircraft hull insurance. You may purchase these coverages separately or as a package.