This guide is designed to provide a general understanding of aviation insurance for charter aircraft, as well as coverage options available. However, it is important to review your policy or proposed policy carefully; this guide is not intended to substitute for, or include key details of any specific policy.
Elements of Your Policy
Declarations Page: The declarations page(s) of the policy gives specific information on you and your aircraft. Be sure this information is correct.
Who Is Insured: The policy protects the named insured, employees of the named insured, and parties listed as “additional insured.” If you use leased aircraft, they are usually also included as additional insured. Unless otherwise stated, an aircraft insurance policy does not provide any coverage for providers of pilot, flight instruction or maintenance services.
Liability Coverage: Your liability coverage is designed to cover bodily injury and property damage to third parties that you may be held legally liable for. Many factors are involved in choosing the proper limit of liability for your operations. You should know your liability coverage limits and consult your agent to add additional protection. Note that in the event of a claim you and anyone listed as additional insured will share the liability limit. Increasing your liability limit is recommended if you add an additional insured to your policy. Your liability coverage does not cover bodily injury to you, your employees or contractors and it does not cover property damage to property owned by or leased to you.
Physical Damage Coverage: The physical damage coverage protects your aircraft and its parts from accidental harm. Be sure to insure your aircraft for its full retail value and discuss any lienholder arrangements with your agent to be sure your policy fully covers their interest.
Aircraft Use Contracts: Any contract relating to the use, storage, maintenance or management of your aircraft should be submitted to your agent before you execute it. Certain contract wording can void your insurance coverage if the contract is not approved in advance. Of special concern are contracts that require adding someone as an additional insured, include the phrase "hold harmless and indemnify" or contain any wording releasing another party from liability for damage to your aircraft.
Use of Non-Owned Aircraft: If you intend to use another aircraft or enter into any time-share agreements with other parties, contact your agent to review the agreement to be sure your policy provides coverage for your use of the other aircraft.
Pilot Requirements: All pilots must meet all of the requirements listed in the policy. Review the requirements carefully and contact your agent with any questions. Pilot time must be logged and verifiable. FAA flight review, recency, recurrent training and medical certificates must be current. Your policy may also contain training requirements over and above the FAA required minimums. Any pilot receiving any flight instruction must be listed on the policy as a named pilot.
Flying in the U.S. and Elsewhere: There are specific requirements for many countries, including Mexico, Canada, Cuba, China and Europe. Contact your agent to discuss these requirements as well as optional coverages we recommend for these trips including war, confiscation and terrorism coverage.
Workers' Compensation Insurance: Your aircraft liability policy does not provide workers' compensation coverage for your flight department. You may be legally and ethically required to purchase a separate workers' compensation policy for your pilots and maintenance personel. Contact your agent for details on this important coverage.
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