What accidents are covered by aircraft insurance, and what exclusions or limits should I understand?
What are common exclusions in airplane insurance policies?
All airplane insurance policies are all different, but some exclusions are obvious and common. Common exclusions in airplane insurance policies are:
- Parachuting / Skydiving Exclusion: No coverage if the aircraft is used for parachuting or skydiving
- Terrorism Exclusion: Terrorism is excluded but could be available for purchase
- War exclusion: War is excluded but could be available for purchase
- Asbestos Exclusion: A common exclusion for Asbestos
- Wear and Tear Exclusion: worn out parts are not covered. Damage caused by the worn-out part might be covered though
- Unapproved pilot use: All pilots must meet the pilot wording in the policy
- Policy territory limits: Coverage can be denied if the aircraft is flown outside of the covered territory
What are common limits on private aircraft insurance coverage?
Private aircraft insurance liability limits can range from $1,000,000 with a $100,000 per passenger sub-limit to hundreds of millions of dollars. Two main factors underwriters use to determine the availability of liability are pilots and aircraft make and model.
Available liability limits:
| Limit | Pilot | Aircraft |
|---|---|---|
| $1,000,000 with $100,000 per passenger | Student or Private | Single engine piston |
| $2,000,000 | IFR 700 hours | Single or Twin |
| $5,000,000 | IFR 1,000 hours | Single or Twin |
| $10,000,000 | IFR 1,500 hours | Turboprop or Jet |
| $20,000,000 | IFR 2,000 hours | Turboprop or Jet |
| $50,000,000 | IFR 3,000 hours | Turboprop or Jet |
| $100,000,000 | Two pilot crew | Turboprop or Jet |
| $200,000,000 | Two pilot crew | Turboprop or Jet |
The above limits may not be available on a case-by-case basis.
Which incidents does airplane insurance cover?
Airplane insurance can cover accidents caused by pilot error, mechanical failures, weather, and more.
- Pilot Error: It’s no secret. Most airplane accidents are caused by pilot errors. Airplane insurance policies can help pay for covered claims caused by most pilot error accidents.
- Mechanical Failure: It doesn’t happen often, but airplanes are machines and they do break. Airplane insurance policies can help pay for accidents caused by most mechanical failures.
- Weather: Flying in bad weather is dangerous. A pilot can fly into poor weather environments on purpose or by accident. Airplane insurance policies can help pay for covered claims caused by poor weather.
