For those in the aviation business, it is crucial that you address your complex aviation risk exposures. When considering insurance, you can’t really bypass discussing liability coverage. There are several different types of insurance that apply to the industry, but one could certainly not risk going without proper aviation general liability insurance.
Most insurance coverages in aviation require specialty underwriting, so it’s important that you are equipped with aviation general liability insurance from a provider with experience in the market.
Aviation Insurance, Explained
Almost all non-aviation specific property and casualty insurance policies, such as Commercial General Liability (CGL), exclude coverage for aircraft. Typical exclusion includes bodily injury or property damage arising out of the ownership, maintenance, use or entrustment to others of any aircraft that is owned, rented or loaned to any insured loading or unloading. The right insurer will close these insurance gaps and provide you with coverage for your business aviation.
Drone owners must have a separate policy as well, since the FAA now includes drones and other UAS as “aircraft” – a definition tested by the National Transportation Safety Board and now firmly accepted – drones are now included in any exclusion of “aircraft.”
Fortunately, the aviation insurance market had begun writing policy language and was prepared to meet the needs of this new aviation risk exposure.
Aviation insurance is coverage geared specifically to the operation of aircraft and the special risks involved in aviation. These policies are distinctly different from those for other areas of transportation and tend to incorporate aviation terminology, as well as terminology, limits, and clauses specific to aviation insurance. It is in your best interest to speak to an agent about how aviation general liability insurance can protect your business.
Do you have a strong coverage foundation of aviation general liability insurance?
Aviation general liability, or AGL, is very similar to your commercial general liability policy, as it will cover you if a third party is injured on your property or by your actions. AGL policies are necessary because most commercial general liability policies will not cover aviation-related exposures. These AGL policies are typically sold to aviation businesses that operate on airport property and they do include products liability coverage and completed operations. Secure aviation general liability insurance to protect your business from the unique risk exposures of the aviation industry.