Aviation insurance is coverage for the operation of aircraft and is different from other transport insurance in the terminology used which is specific to aviation. There are several different types of coverage available to the operators of aircraft which I will outline below.
Public Liability Insurance
This type of coverage, which is also common to other types of transportation, deals with third-party liabilities when damage is done by the aircraft to other people’s property. This insurance doesn’t cover damage to the aircraft itself and is mandatory in most countries in order to allow you to operate the airplane.
Passenger Liability Insurance
This insurance will compensate passengers and their families when injured or killed aboard an aircraft. This coverage is normally mandatory for commercial aircraft and is sold based on how many seats the plane has.
Combined Single Limit Coverage
This type of coverage is a more flexible approach to paying claims but is limited to a maximum payout per accident. Combined single limit coverage is a combination of both public and passenger liability insurance and is used instead of those individual insurance types. This coverage allows more compensation to be paid out to injured passengers than otherwise would be, but only if there aren’t many claims for damage to property as well.
Ground Risk Hull Insurance
There are two types of ground risk hull insurance, one which offers cover for when the aircraft is stationary and another for when it is taxiing. As you might have guessed from the name of this type of insurance, it has its origins in maritime insurance. The cover for when the aircraft is in motion is less common these days, thanks to many disputes between insurance companies and owners over whether the aircraft was taxiing or taking off when the accident took place.
This type of insurance is more expensive as it covers damage to the aircraft while in-flight as well as taxiing and stationary on the ground.