Airplane Insurance

What Is Airplane Insurance?

Airplane insurance, commonly called aviation insurance, is a specialized line of coverage designed for owners and operators of private and general-aviation aircraft. It protects against hull damage, third-party liability, passenger liability, and a range of aviation-specific risks that standard insurance policies do not address.

Key Coverage Components

Aviation policies are built around two primary coverages: hull insurance and liability insurance. Hull coverage protects the physical aircraft—in motion and at rest—against damage from accidents, weather events, hangar mishaps, and more. Liability coverage is split into bodily injury and property damage to third parties on the ground, and passenger liability, which covers occupants of the aircraft.

Pilot Qualifications and Open Pilot Clauses

Unlike auto insurance, aviation policies closely regulate who may fly the insured aircraft. The policy's pilot warranty or open pilot clause specifies minimum ratings, flight hours, and currency requirements. If a pilot who does not meet these qualifications is at the controls during a loss, the insurer may deny the claim. Keeping your qualifications current and notifying your insurer of any additional pilots is essential.

Factors That Affect Aviation Premiums

Premiums depend on the aircraft type, its value, the pilot's total flight hours and hours in type, intended use (pleasure vs. business vs. commercial), base airport location, and geographic operating area. High-performance and multi-engine aircraft carry higher premiums, as do low-time pilots. Annual recurrent training often qualifies for discounts of 5–10%.