Aviation Insurance
Aviation insurance covers the unique liability and physical damage exposures associated with owning and operating aircraft. Standard commercial general liability and commercial property policies do not cover aircraft — aviation exclusions in those policies eliminate coverage for bodily injury, property damage, and physical loss arising from aircraft operations. Businesses and individuals that own or operate aircraft of any type require a specialized aviation policy to address these exposures.
Core Aviation Coverage Components
An aviation insurance program is typically built around two primary coverage components:
- Aircraft hull coverage — covers physical damage to the aircraft itself, whether from ground accidents, in-flight incidents, weather events, or other causes. Hull policies are written on either an "all risk" basis — covering all physical loss except specifically excluded causes — or on a named perils basis. Coverage may be structured for in-flight only, ground and in-flight, or on an all-risk basis including moored or stored aircraft.
- Aviation liability coverage — covers third-party bodily injury and property damage arising from aircraft operations, including passenger liability, premises liability at hangars and airports, and products liability for aircraft maintenance and repair operations. Liability limits in aviation policies are often expressed as a combined single limit per occurrence and may include separate sublimits for passenger liability.
Specialized Aviation Coverages
Depending on the nature of the operation, additional coverages may be appropriate:
- Medical payments — covers medical expenses for passengers regardless of fault
- Hangarkeepers liability — covers damage to aircraft owned by others while in your care at a hangar or repair facility
- Airport liability — broader premises liability for airport owners and fixed base operators (FBOs)
- Products and completed operations — liability for aviation maintenance businesses and parts manufacturers
- Non-owned aircraft liability — covers liability arising from the use of rented or borrowed aircraft
Industry Considerations
Aviation insurance requirements vary significantly depending on whether the aircraft is used for personal transportation, business travel, charter operations, agricultural applications, aerial photography, or flight instruction. The type of aircraft, the pilot's qualifications and experience, the geographic range of operations, and the number and type of passengers carried all affect how coverage should be structured and what it will cost. Corporate flight departments, charter operators, agricultural aviation businesses, flight schools, and FBOs each have distinct insurance needs. Etowah Insurance Group works with aviation clients to place coverage that matches the specific aircraft, operations, and liability exposure involved.
