how does aircraft insurance work

What is Aircraft Insurance?

Aircraft insurance is an insurance policy that helps to provide liability and property coverage for aircraft and aviation. It is often referred to as aviation insurance. It is important to note that the aircraft insurance policy is a little bit different from the insurance policies covering other means of transportation. The different types of aircraft that the insurance policy can be purchased include experimental, standard, seaplane, and vintage aircraft. The policies are enacted to cover repairs or replacements of any damage caused by an accident or as a result of wear and tear. 

Aircraft insurance is similar to other kinds of insurance. Just as the owner of a line of ships would purchase an insurance policy to cover the ships, in the same way, aircraft insurance can be gotten to protect the aircraft. 

It is noteworthy that there is a little difference between aircraft insurance and aviation insurance, this difference is that aircraft insurance covers all repairs and replacements, while aviation insurance only applies to liability claims for loss of life or claims on injury. 

Aircraft insurance can be purchased to cover the aircraft alone or extended to damages done on airports and other related landed properties. 

Benefits of the aircraft insurance policy. 

• Aircraft insurance helps to cover damages caused by an accident or as a result of wear and tear. 
• Aircraft insurance can extend to the damages caused to a passenger's property during an accident and even cover the passenger's medical 
• Aircraft insurance policy coverage can extend to the properties owned by the aircraft company. 
• Aircraft insurance can cover claims or suits that arise out of the ownership, maintenance, or use of aircraft are generally excluded under the standard commercial general liability (CGL) forms.

While aircraft policy is often used by commercial aircraft companies, it is also recommended to businesses that elect to use private aircraft in their operations. The insurance helps to cover aircraft liability loss exposure. 

There are different types of aircraft liability. There is the standalone or non-owned aircraft liability coverage and excess aircraft liability coverage. Aside from these two, there is also coverage for third-party aircraft liability. This type of coverage covers medical bills and physical damages. 

Aircraft insurance policy varies. Some insurance policies provide both standalone aircraft insurance and the medical bills while others cover aircraft product liability, airport liability, land-based general liability, and hangar keepers liability coverage. 

Other insurance policies extend to the properties of passengers, the injury sustained during operation, liability indemnification for the hangar that the aircraft is stored in, the cost associated with the search and rescue team as well as the cost of emergency landings. The factors that determine the extent of coverage include the type of insurance policy that is purchased.