Insurance coverage for airplane accidents

Posted on July 24, 2020 in Aviation

Insurance coverage for airplane accidents can vary widely. First, liability insurance is just one part of an aircraft policy. The other parts insure the value of the aircraft for damage and perhaps medical expenses. Liability insurance is triggered when the insured policy holder could be legally responsible for an injury or death caused by a plane or helicopter crash. Airlines usually have considerable liability insurance. General aviation insurance is another matter. Charter planes, corporate aircraft, flight schools, flying clubs, privately owned aircraft, including home built and experimental aircraft, will have varying, and sometimes, even no insurance.

If there is insurance for general aviation accident it may have limits on what is covered. For instance, many general aviation policies have just $1 million in coverage per occurrence for property damage and a maximum payout of $100,000 per person injured or killed. That means if a passenger is seriously injured or killed in a crash, the plane owner may have little insurance to compensate for the loss. Some aircraft owners want lower liability limits to save on the cost of a policy. What they do not realize is that if they have any assets they are putting themselves at risk by not purchasing more coverage.