Who requires airplane insurance for private aircraft owners?

Private aircraft owners are required to have insurance by Hangar owners, Airports, Banks, Training Facilities, CFI’s, Clients, and more.

Hangar Owners: Hangar owners will typically require tenants to have appropriate aircraft insurance coverage.  In many cases hangar owners will require that tenant aircraft owners list the hangar owner as an additional insured on the owner policy.

Airports: Airports and in many cases the associated cities or counties will require airplane owners to have insurance to operate out of their airports.

Banks: Banks will require airplane owners to have insurance.  In most cases banks will require the airplane owner to list the bank as loss payee and include Breach of Warranty coverage.

Training Facilities: Flight schools and training facilities commonly require airplane owners to have insurance before training begins.  Many training facilities will require the airplane owner to list them as an additional insured.  In many cases the training facility will require a policy with a Waiver of Subrogation.

CFI’s: A CFI can have Non-Owned CFI insurance but in many cases a CFI will require the aircraft owner to have insurance and list the CFI additionally insured on the policy.  A Waiver of Subrogation may also be a requirement before a CFI will instruct in the aircraft. 

Clients: If the aircraft is operated commercially or for hire the clients will often require the appropriate insurance.