AIRCRAFT POLICY

Description of Coverages 

(1)  Aircraft Liability: 
This coverage provides an Insured Party (as defined in the policy) with a paid legal defense should they be sued for bodily injury, or property damage arising out of the ownership, maintenance or operations of an insured aircraft as defined in the insurance policy. Should a judgment be granted against them, the insurance carrier will pay on behalf of the insured sums which they are liable up to the policy limits. This coverage does not pay for injuries to or for the death of an “Insured Person”. That would be covered by their own Life or Medical Policies.

(2)  Aircraft Hull Coverage:
This provides physical coverage for aircraft you own or lease and which are listed on your insurance policy. Normally hull coverage is written as “all risk, including in-flight”. However, ground coverage is also available which can either include or exclude taxiing. Depending on the type of aircraft and type of risk deductibles may apply and may vary from insurance company to insurance company.

(3)  Aircraft Medical Coverage: 
This coverage is designed to pay for minor injuries (bodily injury) which arise out of the operation of your aircraft. This helps avoid litigation for minor claims. Medical limits normally range from $1,000 to $10,000 each person. These days $5,000 is the standard limit and is normally included at no charge.

 

Some Optional Coverages: 

(1)  Non-Owned Aircraft Liability: 
This coverage provides a paid legal defense should an Insured Party be sued for bodily injury, or property damage (excluding damage to the aircraft itself) arising out of their use of a non-owned aircraft. This coverage is normally included at no cost in Pleasure & Business and Industrial Aid policies. For commercial operators there may be a premium charge for this coverage. Depending on the type of commercial services that are offered it can be an important coverage. It provides protection while the insured is conducting Maintenance Test Flights (including pick up & deliver), Part 91 Pilot Services, and Flight Instruction in aircraft which are not owned by, or leased to them.  Should a judgment be granted against an Insured Party, the insurance carrier will pay on their behalf all sums which the Insured Party is liable, up to the policy limits of this coverage. This does not provide any protection for the party who owns the aircraft you are operating.  Not all types of aircraft are covered so you would need to review the policy provisions for the descriptions of the types of aircraft which are covered.

(2)  Non-Owned Aircraft Physical Damage Liability: 
This coverage provides liability protection for damage to an aircraft which is not owned by, or leased to the policyholder while the aircraft is in their care, custody and control. This coverage is normally included at no cost in Pleasure & Business/Industrial Aid policies. For commercial operators there may be a premium charge for this coverage. As with the Non-Owned Aircraft Liability that is mentioned above for commercial operators, it can be an important coverage to carry since it provides protection while the insured is conducting Maintenance Test Flights (including pick up & deliver), Part 91 Pilot Services, and Flight Instruction in aircraft which are not owned by, or leased to them. It pays only for damages to which the Insured Party is legally responsible.  This coverage is not to be confused with hull insurance since it is liability coverage and only pays if the loss was the insured parties fault.  This coverage can also be written on an Airport General Liability policy and is known as In-Flight Hangarkeepers Liability. 

(3)  Student/Renter Pilot Liability (Commercial Policy): 
This coverage provides your student and renter pilots with a paid legal defense should they be sued for bodily injury, or property damage arising out of their operation of your insured aircraft.  Should a judgment be granted against them, the insurance carrier will pay on their behalf all sums which they are liable for up to the endorsement limits. The limits for this coverage vary with each insurance company but they are always part of your total occurrence limit of liability and are not separate from it.

(4)  Spare Parts/Equipment Coverage: 
This coverage provides physical coverage for loss or damage to your aircraft spare parts owned by you. This coverage is normally included at no cost in Pleasure & Business/Industrial Aid policies.

(5)  Cargo Legal Liability (Commercial Policy): 
This part provides liability coverage for damage or destruction of cargo while being transported by, or loaded and/or unloaded into one of your insured aircraft. A Part 135 Charter Operator would normally purchase this coverage.

 

Southwest Aviation Insurance Group 
Mark Nichols - Dave Monaco 
14415 N. 73rd Street, Suite 115  Scottsdale, AZ 85260 
Telephone:  480-483-7844   |   Fax:  480-483-8299 
Toll Free:  800-324-6787