Aircraft Insurance
Professional pilots need protection against many different threats, including liability, passenger injuries, property damage, and more.
Written by
Christine Lacagnina has written thousands of insurance-based articles for TrustedChoice.com by authoring consumable, understandable content.
Reviewed by
Cara Carlone is a licensed P&C agent with 20 years of experience. She has her P&C license in RI and TX and holds CPCU, API, and AINS designations.
Whether you fly for business or pleasure, you need to protect your airplane from various risks. Not only do you need to be concerned with physical damage to your plane, but also liability risks to passengers and other third parties. Fortunately, the right aircraft insurance is built to address all of these potential hazards.
An independent insurance agent can help you find the aircraft insurance policy that best meets your needs. A local agent can help you compare aircraft insurance quotes from several different insurance providers to find the coverage that offers the best blend of protection and cost. But first, here's a behind-the-scenes look at aircraft insurance, what it covers, why it's necessary, and more.
Most Common Causes of Airplane Crashes
When insuring your aircraft, it's helpful to understand the most common causes of potential hazards. These are the top six causes of airplane accidents:
- Pilot error (69%)
- Mechanical failure (more than 60%)
- Weather conditions
- Air traffic control errors
- Bird strikes
- Runway incursions
Since pilot error accounts for well over half of airplane crashes, having protection against professional mistakes is critical. An independent insurance agent can help you get an aircraft insurance policy that addresses all of these common causes of plane incidents.
What Is Aircraft Insurance?
Commercial and private pilots need aircraft insurance to reduce financial risks associated with many common issues that can arise, including accidents, property damage, and more. Your aircraft insurance policy can provide property damage protection for your airplane, as well as a special type of professional liability insurance that covers negligent acts or errors that can harm passengers and other members of the public.
If you rent an airplane, you also need to protect yourself against exposure to liabilities and property damage for the rental plane you fly. An independent insurance agent can help you find an aircraft insurance policy that includes all the necessary protection.
What Does Aircraft Insurance Cover?
Airplane insurance or private jet insurance for owned aircraft includes a combination of risk protections, such as aviation liability, passenger liability, and aircraft hull insurance.
- Aviation liability insurance: This includes public liability coverage, which protects you if your aircraft damages third-party property, such as houses, cars, airport buildings, or other aircraft. It does not cover injury to your passengers.
- Passenger liability insurance: Passenger liability insurance covers the risks involved in transporting passengers in your aircraft. This coverage provides protection if your passengers are injured or killed while riding in your plane. Passenger insurance usually covers you on a cost-per-seat basis and provides a coverage limit for each passenger seat.
- Combined single limit liability insurance: This policy contains coverage for both public and passenger liability with a single comprehensive claim limit. This can be used to pay claims on passenger liability only, public liability only, or both. For example, if an accident causes injury to passengers but does not damage third-party property, coverage would pay only for the injured passengers.
Ask your independent insurance agent to help you build a complete aircraft insurance policy.
What Is Aircraft Hull Insurance?
Aircraft hull insurance covers physical damage to your airplane, which is another vital section of your policy. This coverage comes in three forms:
- Aircraft hull ground only: Covers property damage to the airplane while it's on the ground and not in motion. This includes fire, weather events, vandalism, theft, and other risks pertaining to a grounded plane.
- Aircraft hull while taxiing: Covers property damage to the airplane while it's on the ground and taxiing. This covers the cost of accidents, such as running into another airplane or colliding with a hangar, but it doesn't cover damage once the plane takes off.
- Aircraft all risk: Covers property damage while the plane is on the ground, taxiing, or in flight. The most comprehensive of the coverage options, this coverage is also the most expensive.
All pilots are unique, and this specialty coverage is nearly always individually underwritten based on experience level, the value of the plane, local hazards, and other factors. That's why it's important to work with a knowledgeable independent insurance agent who can provide the guidance you need to get properly insured.
When to Buy Aircraft Rental Insurance
If you don't own your aircraft, but fly rental planes, it's important to consider airplane rental insurance. Some pilots are under the assumption that the fixed-based operators (FBO) insurance covers you and the rental plane in the event of an accident. Many times, this coverage is insufficient for your protection if an accident occurs or another claim is made against you. As a result, you'll want to have your own airplane renters insurance.
A rental or non-owned aircraft policy provides both liability and property damage coverage. Typically, you'll want to carry as much liability insurance as you can afford, but the property damage limits should be determined by the value of the rental plane you fly. An independent insurance agent can help you choose the right amount of aircraft rental insurance.
How Much Does Aircraft Insurance Cost?
The cost of aircraft insurance can vary considerably depending on many different factors. These often include the type of plane, its value, your experience, training and flying history as a pilot, and the safety record of your aircraft.
Your personal claims history may also affect your premium rates. If you have a large plane and take passengers on long charter flights, you can expect to pay much more than pilots with small aircraft that make short or infrequent trips.
Here are a few tips to reduce your aircraft insurance costs:
- Store your aircraft in a hangar.
- Get an instrument rating.
- Increase your flight hours and experience.
- Complete pilot proficiency training.
- Compare quotes with an independent insurance agent.
Working with a local independent insurance agent is the best way to find affordable aircraft insurance near you that still provides all the critical protection you need to protect yourself, your plane, and your passengers.
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An Independent Insurance Agent Can Help You Find the Right Aircraft Insurance
Since no two aviation insurance companies are alike, it's helpful to shop for the best value for your needs. A local independent insurance agent can help simplify this process by shopping multiple carriers for you and providing you with several aircraft insurance quotes quickly.
They'll find you the policy that provides a blend of the best coverage and cost. And down the road, your agent can even help file claims for you and update your policy when necessary.
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