Aircraft Insurance
A specialized area of insurance is aircraft insurance. This will protect owners, operators, and other stakeholders that are involved with aircraft. Drones, planes, helicopters, or commercial jets will all fall under the aircraft insurance umbrella. There are many risks and complications in the aviation realm, so having a comprehensive coverage option is important for those who own the aircraft. Aircraft insurance is essential whether you own a small aircraft or are operating a fleet.
Types Of Aircraft Insurance
Choosing the right type of insurance is based on the type of aircraft you have. Here are the most common types of insurance coverage that can often be combined together to fully cover your aircraft.
- Liability Coverage: The most basic form of insurance you should start with is liability coverage. It covers legal liabilities that could arise from property damage or bodily injuries caused by the aircraft. If the aircraft damages a building or injures a third party, your liability coverage will help pay for their needs.
- Hull Insurance: Hull insurance covers physical damage to the aircraft itself. It is divided into Ground Risk: while not in motion, Ground Risk: while in motion, and In-flight Hull Insurance. Whether your aircraft is sitting, flying, or taxiing, you will be compensated based on the damage.
- Passenger Liability Insurance: Covering claims from passengers is the goal of passenger liability. It will help cover the cost of medical or funeral expenses for passengers of the commercial or private aircraft. Your insurance company will pay for these expenses instead of your company.
- Combined Single Limit (CSL): A policy that combines bodily injury and property damage to offer greater flexibility in handling claims.
- Hangar Keepers Insurance: For businesses that store or service aircraft in a hangar, this policy will help protect against damages while in the care of another party. If it is out of your care, custody, or control, hangar keepers insurance will pay for the damages.
- War and Terrorism Coverage: If your plane or aircraft is hijacked or used for an act of terrorism, your insurance will help cover the losses. War, terrorism, or hijacking could cause major financial and bodily loss. Insurance will lower the stress of a tragedy by handling legal battles and insurance payouts.
- Loss of Use Insurance: This optional coverage will reimburse the policyholder for lost income while the aircraft is being repaired or is out of service. This policy will mostly benefit commercial aircraft owners.
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Factors That Affect Insurance Cost
Aircraft insurance is one of the highest-costing insurance policies on the market and can change drastically based on a few factors. The type of aircraft and number of aircraft you own will play a major role in the monthly premiums you pay. Advanced features and other factors that are associated with certain models can increase the monthly premiums.
The purpose of the aircraft also impacts insurance costs. The intended use is not something you typically see on other insurance offerings, so it is important to find a policy that fits your aircraft needs. Personal, business, or commercial use can change the number of elements your aircraft is exposed to. It will cost more for an insurance company to pay for commercial damages, rather than personal aircraft liabilities.
Legal Compliance
The biggest reason to purchase aircraft insurance is so that your aircraft will continue to operate without legal ramifications. Many countries require you to hold aircraft insurance in order to fly or transport passengers. Without adequate insurance, you could be facing devastating financial consequences that could put you out of business.
Aircraft Insurance Assistance From Our Brokers
Aircraft insurance is a niche area of insurance coverage options. While some large companies offer policies for aircraft, some will not take on that risk. This can make it difficult to find the best insurance policy and may require many hours of searching for a company that will financially cover your aircraft. Working with a broker will help give you this time back and may even have a company on their list who is willing to over aircraft insurance to new clients.
Tower Insurance Brokers will look at all companies that offer aircraft insurance and read the finite details to ensure you’re covered. We will look at all factors influencing premium costs and the claims process so that you can focus on other aspects of caring for your aircraft. Limit stress and financial worry by working with our experience brokers in Idaho.