Do you own a helicopter, an airplane, or a drone? Then you may need aviation insurance. Aviation insurance is a type of coverage for aircraft that protects in the event of an accident, theft, or another type of damage.
Of course, like any insurance policy, there are many different types of coverage and various insurance plans to choose from.
If you have not yet gotten insurance for your aircraft, or if you are still considering purchasing an aircraft, then you should take a moment to learn a little more about aviation insurance.
Explore the types of insurance that are available, along with the advantages of getting insurance for your aircraft.
What is Aviation Insurance?
Aviation insurance is protection in case your aircraft receives or causes damage. There are two major types of insurance – liability and protection.
Liability coverage is used to pay costs related to damages that you are liable for. This could include damage to third party property or damage to passengers or bystanders. Protection coverage covers damage to your aircraft.
What types of aircraft need insurance? This could apply to almost any aircraft. If you own any of the following types of aircraft, then you should think about getting insurance:
The type of policy that you choose will be based on the type of aircraft that you are operating.
Multiple Types of Insurance Policies
As mentioned, there are different types of insurance policies. Depending on the type of aircraft that you have and how you intend on using your aircraft, you may require certain types of coverage.
For example, if your plane will contain passengers, then your insurance will need to include coverage for passengers. Some of the basic types of coverage include:
Combined single limit
Ground risk hull
Aviation insurance can first be divided into two main categories – public and passenger liability. Public liability is used to cover repairs and damages to public property caused by your aircraft. Passenger liability is used to cover the costs of medical bills for passengers that are injured while riding in your aircraft.
There are some insurance policies that combine public and passenger liability. This is referred to as combined single limit coverage.
If you want to protect your actual aircraft in case it is damaged, then you will need ground risk hull insurance or in-flight insurance. Ground risk hull insurance covers your aircraft while it is grounded, such as when it is in your hangar or taxiing along the runway.
In-flight insurance is more expensive and protects your aircraft whether it is in the air or on the ground. Remember, this does not always include public or passenger coverage. You will need to check with your insurance company if you want to include complete coverage.
You should also keep in mind that different types of aircraft may have different types of insurance policies. The laws and regulations concerning insurance may also vary.
As an example, if you have a commercial aircraft that carries passengers, you will need passenger liability insurance in most regions. But, you would not need this type of coverage if you are operating a drone.
The Advantages of Having Aviation Insurance
The primary advantage of having insurance is the protection that it provides. It is better to be safe than sorry. You never know when an accident may occur, which is why they are considered accidents. Insurance is the best form of protection from these accidents, as well as for theft, vandalism, and natural disasters.
When your aircraft causes damage, you could be responsible for repairs or medical costs. These costs could bankrupt your business or your personal bank account if you do not have insurance.
Most insurance policies begin at $1 million and increase from there. This should give you some indication as to the average costs involved in an aircraft accident. Without insurance, these costs would all need to be covered by you.
Final Thoughts on Aviation Insurance
Should you get aviation insurance? If you have an aircraft, you should definitely think about getting insurance. In fact, you may even be required to get insurance, depending on how you plan on using your aircraft.
It should be noted that legal costs are not typically included in your coverage. So, if your aircraft is responsible for personal injury or damage to private property and the victim does not agree with the settlement, you will need to pay legal expenses out of pocket.
Insurance is a necessity. You can enjoy the peace of mind that comes with knowing that you are protected.
When searching for insurance, remember to compare rates and make sure that you get any coverage that is required by local, state, or federal laws or regulations. In the end, if you want proper protection, you need insurance.