Why do pilots need insurance, and how does pilot insurance differ from aircraft insurance?
Why would a pilot need airplane insurance?
Airplane insurance can help mitigate the financial risks involved with piloting an aircraft. Pilots face serious financial risks whether they own the aircraft, rent it, or fly it professionally.
Potential financial risks:
- Passenger Risk: Injuring or killing passengers can be financially devastating for pilots. Liability insurance including passenger coverage can help pay in the event an insured pilot is found liable.
- People Risk: Most insurance policies differentiate between people and passengers. People on the ground can be treated differently than passengers.
- Property Damage Risk: Liability insurance can help pay when an insured pilot is found liable for damaging someone else’s property. Everything at an airport is expensive. Taxiing into another aircraft can cost millions of dollars.
- Aircraft Damage Risk: Airplanes are valuable assets. In many cases aircraft are worth millions of dollars. Damaging or destroying an aircraft can be financially devastating for pilots. Aircraft hull insurance can help insured pilots pay for damage to the aircraft they are operating.
*It is important for a pilot to be an insured on the policy for the hull and the liability. A waiver of subrogation can help too. Every insurance policy is different. Coverage might not extend to the pilot in some policies.
How does airplane insurance differ from pilot insurance?
Airplane insurance can include hull and liability. Airplane insurance can help cover the insured aircraft and liability exposure of the insured. Pilot insurance typically refers to life insurance for pilots.
- Airplane Insurance: Can include hull and liability to help cover damage to the aircraft and liability exposure of the insured.
- Pilot Insurance: Pilot insurance is a term often referring to Life Insurance for Pilots.
What does airplane insurance cover for pilots?
If the pilot is an “Insured” on an airplane insurance policy the pilot could potentially be covered for damage to the hull of the aircraft, Bodily Injury, and Property Damage.
- Hull Insurance: Can help cover damage to the insured airplane.
- Bodily Injury Insurance: Can help cover injuries to people on the ground and potentially passengers.
- Property Damage: Can help cover damage to other people’s property.
*It is important for a pilot to be an insured on the policy for the hull and the liability. A waiver of subrogation can help too. Every insurance policy is different. Coverage might not extend to the pilot in some policies.
