Commercial aviation insurance is a requirement if you plan on operating a commercial airline or offer flight services. The insurance policies that you will need vary from the policies that you may be familiar with for automobiles, homes, and other personal property. They are specific to the world of aviation.
Insurance is a form of protection that saves you from having to pay “out of pocket” for costs related to damage or injury. You can get passenger coverage, in-flight coverage, and other policies so that you are protected in the event of an accident. These policies can also cover damages related to theft, vandalism, fire, and natural disasters.
Along with being able to choose from multiple policies, why should you get insurance? Discover 5 reasons to go for commercial aviation insurance. Learn more about the advantages of getting the right type of insurance.
#1 – You Can Protect Your Aircraft
One of the main reasons to get commercial aviation insurance is that you can protect your aircraft. When you get coverage for your aircraft, you can cover the value of your hull up to a specific amount. The coverage amount often depends on the value of your aircraft.
Your aviation insurance may only cover damages that occur while your aircraft is on the ground. For in-flight coverage, you may need to get a separate policy. Though, this will depend on the insurance provider that you choose. When you talk to an insurance agent, ask which policies are required in your region.
#2 – You Can Protect Your Passengers
In addition to protecting your aircraft, you can protect your passengers with an insurance policy. This will often be separate from your other policies.
Though, you can choose a combined single limit insurance policy. Again, discuss these options with your insurance agent.
Passenger insurance policies will have a higher value than coverage for your aircraft. The reason for this is that passenger insurance covers medical costs and other expenses related to any injuries.
Some insurance providers will offer passenger insurance based on the number of passenger seats that your aircraft contains. Each seat receives a specific limit.
For example, you may have a $250,000 limit on each of your 20 passenger seats. This would be a $5 million insurance policy. The insurance company would then pay out a maximum of $250,000 per injured individual.
#3 – You Can Protect Any Type of Aircraft
Commercial aviation insurance is not just for large commercial airplanes. You can also get aviation insurance for helicopters, corporate jets, or a cabin class twin plane. Essentially, you can get insurance policies for any type of aircraft.
The type of aircraft that you are getting insurance for may impact the type of insurance policy that you require. You should always make sure that you have the necessary coverage for any aircraft that you own.
#4 – You Can Get Coverage for Multiple Territories
When purchasing aviation insurance, you can get coverage for multiple territories. For example, if you only plan on flying within the United States, then you will only need coverage for the US. But, if you want to fly internationally you may need additional coverage for other territories.
There are also insurance providers that offer worldwide coverage. This ensures that you are protected no matter where you travel in the world. The territories covered could be important when operating an airline.
For a commercial business that plans on expanding to international locations, you will probably want worldwide coverage at some point. But, for the time being, you can stick to coverage for your region and then make changes to your policy at a later date.
#5 – Discuss Your Options with a Trained Insurance Agent
The final reason to get commercial aviation insurance is that you can receive expert advice from trained insurance agents. You do not have to spend hours researching different policies. Allow an expert agent to explain the policies that are required in your region.
Commercial aviation insurance is often required in most countries. You should always talk to a respected insurance provider to determine which type of coverage you require. You can then explore different insurance policies and find the plan that best suits your needs.
Aviation insurance is necessary if you want to avoid the costs of repairs. Passenger liability coverage protects you in the event that one of your passengers gets injured or dies. Generally, you will want a combination of coverage that includes protection for both your aircraft and your passengers.
The bottom line is that you are going to need an insurance policy for your aircraft. Even if you are not planning on offering commercial flights, you will still need some form of aviation insurance in most countries.
If you have any further questions, you should find a trusted insurance agent in your area.