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Aircraft insurance is a specialized type of insurance designed to protect aircraft owners and operators from the financial risks associated with owning and using aircraft. Here’s what it covers:
Two Main Types of Coverage:
- Hull Insurance
- Physical Damage: Covers the aircraft itself in the event of accidents, theft, or damage from covered perils like:
- Ground incidents (hangar collapse, etc.)
- In-flight events (collisions, engine trouble)
- Weather damage (hail, storms)
- Choice of Coverage:
- Agreed Value: Pays a set amount if the plane is totaled.
- Actual Cash Value: Pays based on the plane’s value at the time of loss (less depreciation).
- Liability Insurance
- Bodily Injury & Property Damage: Protects if your aircraft injures someone (passengers, people on the ground) or damages property. Includes:
- Legal defense costs: If you’re sued.
- Settlements or judgments: Pays damages up to your policy limit.
- Medical Payments: Coverage for injuries to your passengers, regardless of fault.
- Voluntary Medical Payments: Optionally covers medical costs for people on the ground injured due to an accident, even if you’re not liable.
Who Needs Aircraft Insurance:
- Private Owners: Protects your investment in a personal plane.
- Commercial Operators: Covers company-owned aircraft for charter flights, corporate use, etc.
- Flight Schools: Coverage for training aircraft.
- Aircraft Manufacturers: Specialized policies are available for product liability risks.
Additional Considerations:
- Policy Customization: Coverage can be tailored to specific types of aircraft (small planes, helicopters, large jets), their intended use, and pilot experience.
- Lenders May Require It: If your aircraft is financed, it’s likely mandatory.
Why It’s Important:
- High Asset Value: Aircraft are a major investment, and repairs are expensive.
- Legal Liability: If your aircraft causes an accident, lawsuits can be financially devastating.
- Specialized Risks: Standard insurance doesn’t cover the unique risks of flight.