What is Aircraft Hull and Liability Coverage?

A basic aircraft hull and liability insurance policy protects against physical loss or damage risks, such as the following: 

• Physical damage
• Passengers, baggage and cargo carried on the aircraft
• Medical coverage for passengers, pilots and crew members
• Aircraft third-party liability—damage to individuals or property outside of the aircraft itself

The specific deductible, premium and policy limit for an aircraft hull and liability policy depends on a variety of factors, the most important of which are the value of the aircraft and how it’s used. For example, a policy written for a recreational general aviation aircraft may have a $0 deductible, while policies for commercial airliners have extremely high deductibles and policy limits.

Most aircraft hull and liability insurance policies are arranged on an agreed value basis, in which an underwriter places a fixed value on the aircraft at the beginning of the policy. Then, in the event of a loss, the insurer will pay for repairs, or the agreed value of the aircraft minus the deductible in the event of a total loss.

Coverage Options

Because there are so many risks involved in both recreational and commercial flying, you need to ensure that you and your aircraft are properly insured. Many insurers also offer the following coverage for added protection:

• Geographic limits
• Premises medical coverage
• Emergency expense reimbursement
• Non-owned hangars and contents coverage
• Ground risk coverage
• Trip interruption expense coverage
• Spare engines and parts coverage
• Personal effects and baggage coverage
• War risks coverage

Underwriting Considerations

The exact details of an aircraft hull and liability policy will depend on the following criteria:

• Desired policy limits
• Aircraft make and model
• How the aircraft will be used
• Pilot’s overall experience
• Pilot’s experience with your aircraft’s make and model
• Pilot’s training
• Pilot’s loss history

Just like other types of insurance, you can expect to see substantial savings on an aircraft hull and liability policy by managing your risks carefully. The best ways to ensure the safety of an aircraft and those onboard is to obtain extra training for pilots, outfit the craft with safety features and ensure that it’s properly maintained at all times.

Disclaimer: This article is provided for informational purposes only. The information provided herein is not intended to be exhaustive, nor should it be construed as advice regarding coverage. Eligibility for coverage is not guaranteed and all coverages are limited to the terms and conditions contained in the applicable policy. © 2008, 2013, 2016, 2017 Zywave, Inc. All rights reserved.