If you own your own aircraft and you aren’t fully insured, you won’t be able to use FBO services or travel internationally. While it’s essential that you have aviation insurance, which is also called aircraft insurance, it’s just as important to have enough insurance. Being under-insured could cost you a lot of money.
Why Do You Need Aircraft Insurance?
To start, you won’t be allowed to fly in most international airspace, since most countries require insurance by law. Additionally, you wouldn’t be able to use any FBOs, which also require full insurance. Lastly, without aircraft insurance, you’ll be financially liable for any damage that occurs.
Reason #1
Aviation Insurance Protects You From Liability
If you didn’t have aviation insurance, you would be liable for all costs should something happen involving your aircraft. This doesn’t just mean the costs of repairing your aircraft. It would also include medical bills for people injured, property damage costs, and more. Aviation insurance doesn’t just cover the costs of repairing your aircraft. It also covers your liability.
Reason #2
Aircraft Insurance Is Required by FBOs
If you want to use the services of an FBO, you’ll need to have aviation insurance. FBOs don’t allow uninsured aircraft owners to utilize their services, which aren’t just lounge access and concierges. FBOs also offer hangaring and repair services that are necessary for the maintenance of your aircraft. Without aviation insurance, you would lose access to all of that.
Reason #3
Aviation Insurance May Be Required Internationally
If you want to use your private jet to travel internationally, then you’ll be required to have aviation insurance to land. Some countries may even restrict their airspace to only those with insurance due to the liability that could occur in the event of an accident. Depending on where you’re flying, you may need additional international liability insurance for your specific destination.
What Does Aircraft Insurance Cover?
Aviation insurance typically comes in several different types that each cover different aspects of owning a private jet:
In-Flight Insurance
In-flight insurance covers anything that could happen to the aircraft while it’s taking off, in-flight, or landing.
Ground-Risk Hull Insurance (Non-Motion)
Ground-risk hull insurance (non-motion) is an insurance policy that covers any damage that could occur to your aircraft while it’s on the ground and not moving.
Ground-Risk Hull Insurance (Motion)
Ground-risk hull insurance (motion) is similar to its non-motion cousin but instead covers any on-the-ground damage that can occur to your aircraft while it’s taxiing.
Public Liability Insurance
Public liability insurance is the type of insurance policy that provides coverage for damage caused to third-party property and people who are not your crew or passengers in an accident involving your aircraft.
Passenger Liability Insurance
Passenger liability insurance policies cover any injuries to your passengers or damage to their property.
Combined Single Limit Insurance
Combined single limit insurance, or CSL insurance, is a policy that combines both passenger liability insurance and public liability insurance so that there’s one single limit for the two.
How Much Aircraft Insurance Do You Need?
How much aviation insurance you need depends on the size and class of your aircraft. A small private jet, for example, could cost between $1,200 and $2,000 annually to insure. A larger aircraft would have higher insurance costs. Once you have purchased your aircraft or decided which one you want to purchase, you can talk with your insurance broker to make sure that you’ll have enough insurance
You’ll want to make sure that your insurance can fully cover the costs of replacing the plane if that became necessary.
Keep up with the latest in aviation news
Get the latest updates about the aviation industry on our blog.
For informational purposes only.
