Liability Insurance

Does Aircraft Hull Insurance Only Protect the Owner? 

No, Hull Insurance policies can be split with two main factors. Fundamentally, Hull Insurance covers physical loss or damage to the aircraft itself and therefore, all of those that are invested in the aircraft. However, it can also include Aircraft Hull Liability Insurance, which covers the liability against third parties. This can be added into the same policy, which extends the Hull protection to include persons and other property. 

What is the difference between Aircraft Hull and Aircraft Liability? 

• Aircraft Hull covers losses arising from physical damage to aircraft hull. 
• Aircraft Liability covers operators for third party liability.
• Aircraft Liability covers you (as the insured) against any damage or loss to third parties. This is a third party liability cover. 
• Aircraft Hull Insurance covers you for losses that you or your business have sustained directly as a result of damage or loss to your aircraft or helicopter. 

What is Aviation Insurance and does that include Aircraft Hull Insurance? 

Yes, often Aviation Insurance includes Aircraft Hull Liability to protect the aircraft operators against loss and damage. 

Aviation Insurance covers the operation of the aircraft and the risks that are involved. This is far wider reaching and protects the insured for all aircraft damage and loss, as well as for all loss of cargo, or even loss of life. This is therefore a requirement for many countries for airlines to operate in, and covered accidents and sickness of passengers and crew. 

There are usually two main policies that make up Aviation Insurance. 

1. Aircraft Hull Liability Insurance: This is the damage to the aircraft itself. For example, this protects airlines operators against damage that may occur to the aircraft they are leasing. 
2. Passengers: This is coverage for the accident and sickness, and therefore covering the liability for injury or death. 

Background to Aircraft Hull and Insurance Liability 

In 1911, Lloyds of London wrote the first ever aviation insurance policy, but didn’t remain long after significant costs and damages. It was later in 1924 where policies such as these were starting to be underwritten by the marine insurance industry and it covered a mix of fire, personal accidents, automatic accidents and other aspects of marine insurance coverages. 

What types of Aviation Hull and Liability Insurance are there? 

The remit in which this insurance policy can be broker down into three main areas. However, it is very important to get a specialised aviation insurance broker to look into this properly for you as these limits are constantly changing. 

There must be certain coverages in place: 

• Industrial Aid: the largest area by some distance with coverage limits often seen in the hundreds of millions. These policies are insurance for professional pilots against any physical damage and liability against third parties. These protect businesses that own aircrafts. 
• Helicopter and Rotor Wing: The fundamental aim is for businesses to protect their expensive assets. Insurance companies are much more likely to scrutinise the activity, experience and general use of these aircrafts to understand how to limit their exposure. These can be limited to just a few million when provide insurance cover. 
• General Use: Whether business or pleasure, insurance can be bought for owners who pilot their own aircrafts. The numbers of hours flown and experience will directly influence the premium that is paid for these policies whether just for Hull Insurance, or including Liability. 

How Much Value Does Aviation Hull Insurance Cover? 

All policies that cover damage to any physical aircraft, always have the value of the policy pre-agreed. Therefore, it is vital that you get an accurate value of the aircraft. If the value sum insured is below the true value of the aircraft, then where there is significant damage that you want insurance to cover the repair of, the insurance provider may opt to pay out the full sum of the policy. 

In more simple terms, the insurance policy may consider the aircraft a “write-off” and thus just pay out. However, that value may not be what you want as with the repairs, it may be worth more in the current market value.  

This can of course happen the other way, and if the aircraft is overvalued for the insurance cover, then the insurance provider can opt to cover the repair costs of the aircraft, which unfortunately might not bring the aircraft back to its true value. 

Does Aviation Hull Insurance cover the liability of Helicopters? 

Yes. 

The same policies can be bought to cover both the physical helicopter itself (or fleet of helicopters) and the liability of any potential risks. Helicopter liability insurance will act the same as aircraft, and will cover against damage or injury to third parties – whether that is people and passengers, cargo, freight or any other property.

Different insurance providers have different criteria and it is therefore very important to speak with the right broker who can search the market and the aviation insurance underwriters, to make sure you get the cover you or your business needs. Flycovr will always provide access to reputable and experienced aviation insurance specialists that have specific knowledge around insuring helicopters. 

It is also vital to check the regulations of where you and your business is domiciled as it is a legal requirement in many countries to have a minimum amount of liability cover. 

Helicopter Hull Insurance is also very similar to that of Aircraft Hull Cover. This will cover you exactly the same, against physical damage. These cost and coverage of these policies is dependent on the value of the helicopter and it is important to note that where there is complete loss, the insurance will always pay out the agreed amount in the insurance, and not the coverage amount based on current market value of that aircraft.