aviation insurance

Aviation insurance is a specialized type of liability insurance that covers claims and losses stemming from the ownership, maintenance, or use of aircraft, hangars, or airports. This includes damage to the aircraft itself, personal injury to passengers or others, and property damage.1

Aviation insurance policies typically cover both physical damage to the aircraft and legal liability arising from its operation. It also addresses the legal liability of airport owners related to hangars or the sale of aviation products. A significant challenge in underwriting aviation insurance is the potential for catastrophic losses, as large passenger aircraft can incur losses of $300 million or more. Rate-making is complex due to rapid technological advancements and the emergence of new hazards. Some policies provide coverage for medical costs and lost income for passengers with permanent total disability, without requiring proof of negligence.2