Though aircraft have long been an important element in the lives of most Americans, insurance of aircraft exposures has remained outside the mainstream of property and liability insurance markets. Aircraft hull and liability insurance is the counterpart of personal or commercial auto policies coverage. Aircraft products insurance is the counterpart of products liability cover. Air cargo insurance is mirrored in motor truck cargo. Hangarkeepers liability is akin to garagekeepers coverage. As with any specialty line of insurance, the absence of standardized forms limits practice to specialists in the line.
Insurance Encyclopedia
Aircraft damage (aircraft or aerial devices)
See: Aerial Devices.
Aircraft insurance
Specified in paragraph 5 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance) as the insurance upon aircraft or upon the machinery, tackle, furniture or equipment of aircraft.
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Coverage for the insured in the event that the insured’s negligent acts and/or omissions result in losses in connection with the use, ownership, or maintenance of aircraft.
Aircraft insurance policies
Claims or suits that arise out of the ownership, maintenance, or use of aircraft are generally excluded under the standard commercial general liability (CGL) forms. Businesses that elect to use private aircraft in their operations must purchase specialty insurance to cover their aircraft liability loss exposure aircraft liability coverage or stand-alone nonowned aircraft liability and perhaps excess aircraft liability coverage as well. Coverage for third-party aircraft liability is often provided, which also includes hull (physical damage) and medical payments coverages. Aircraft policies are not standardized and vary widely. Some insurers offer policies that combine aircraft liability and hull with other aviation coverages, such as aircraft products liability, airport liability, land-based general liability, and hangarkeepers liability coverage.
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US: Claims or suits that arise out of the ownership, maintenance, or use of aircraft are generally excluded under the standard commercial general liability (CGL) forms. Businesses that elect to use private aircraft in their operations must purchase specialty insurance to cover their aircraft liability loss exposure
Aircraft liability
Specified in paragraph 5 of Part I of Schedule 1 to the Regulated Activities Order (Contracts of general insurance) as insurance against damage arising out of or in connection with the use of aircraft, including third party risks and carrier’s liability.
Aircraft loss of use/aircraft unavailability
Covers airlines for a pre-agreed daily amount in the event of the aircraft being out of use due to an ‘intervening peril’ (peril covered under hull all risks and war risks covers), but can extend to mechanical breakdown, groundings, air traffic control strikes, etc. Cover does not apply to total loss situations. Financiers may insist that cover is arranged to fund lease payments during periods of repair. Claims payments may be sufficient to help the insured meet other fixed costs. See TOTAL LOSS ONLY INSURANCE.
Aircraft repossession insurance
Protects aircraft lessor against confiscatory acts (typically by the country of domicile of owner and/or country of registration) and inability to enforce possessory rights following a default under the lease. The insurance may be extended through a contingent war policy to cover damage to the aircraft whilst awaiting repossession.
Airfreight Replacement Clause, Marine Hull
Different wordings used by different insurers. Version I stipulates that in the event of loss or damage to the goods insurers to pay the cost of airfreighting the damaged parts to manufacturers for repair and return ort the airfreighting of replacement parts from manufacturers or suppliers to destination. Notwithstanding that the goods lost or damaged were not originally dispatched by airfreight. Provided that in no case shall the liability of insurers exceed the insured value of the complete item. Version II covers reasonable cost of airfreighting subject to amount payable shall be limited to a stipulated sum any one claim mentioned in the policy.
Airline insurance
Main policies are aviation hull all risks and aviation liability. Other special forms of aviation insurance effected by airlines are: war risks; deductible insurance; unearned premium; mechanical breakdown; loss of use. Airlines also need a full range of non-marine policies covering ground property, vehicles, risks and liabilities related to ground operations. There are standard aviation wordings (see AVNIC) but most airlines have individual ‘manuscript’ wordings devised with brokers to reflect their particular circumstances. Premiums are based on ‘own experience’, regional and global airline experience, type of aircraft, route structure, passenger make-up and individual legal situations.
Airline Liability
See: WARSAW CONVENTION.