IMPORTANCE OF AVIATION INSURANCE FOR LIABILITY COVER

A corporation’s Board of Directors should acknowledge and defend the harmful loss exposure a business craft represents. Theyexamine the imperative, and become familiar with offered insurance protection and risk management methods. Fortunately massive liability coverage limits ar without delay offered in the company craft arena with limits of $100m, $250m, or $500m offered by numerous insurers at cheap premium margins.

In this article and also the next, we can speak during a broad sense concerning the 2 primary insurance coverages – Liability and Hull – and their importance for all the company due to insurance. Subsequent articles can address specific varieties of accessory coverage.

Liability Coverage

Focus your closesest and nearest attention here – this is your case protection. The potential legal liability for bodily injury or property damage claims arising from AN craft accident ar very tough to predict; you won’t recognize if you bought adequate liability protection till when a loss is settled.


A corporation’s best friend during this field could be a knowledgeable, well-respected aviation insurance broker. Not only will he or she facilitate discuss the broadest insurance coverage (making the protection as bulletproof as possible), but a broker is additionally a valuable resource in helping your choice of the acceptable coverage limit.

How abundant coverage is enough?

As mentioned, since there is no definitive method offered to see the acceptable liability coverage limit to pick out, your response to the following questions will facilitate guide you in choosing an inexpensive limit, based on your exposure:

• Number of rider seats in the aircraft? clearly, an craft with fourteen rider seats presents a bigger exposure, and will need the next liability coverage limit than one with seven.

• Average passenger load per flight? once more, if your average passenger load per flight is 5, you would got to carry the next coverage limit than if it had been two.

• Composition of passengers (Employee versus Guests)? If the majority of passengers carried on the aircraft ar workers, you may be able to justify a lower liability limit since a properly structured Workers’ Compensation program is commonly the only real remedy for injuries to workers. Conversely, if the majority of passengers are guests, you would got to select the next liability limit.

• What assets need to be protected? Don’t let a company provide you with a false sense of security. Savvy plaintiff attorneys can try to pierce shell firms and company veils in an attempt to induce at the “real money” whether or not it's a bigger corporation’s resources or AN individual’s internet value.

• If you have an umbrella policy that covers the aviation exposure, you will got to make certain your primary aviation liability limit meets the minimum needed umbrella limit.

Generally speaking, since it is impossible to see the precise coverage limit you would like, it is best to shop for the maximum amount as you'll be able to reasonably afford. Obtain quotes for various limits every year, as rating of this coverage can vary greatly year-to-year. The take-away for Board Members is that though company craft travel is terribly safe, the potential liability arising from an accident should be addressed and the corporation’s insurance/risk management defense should be thought-about fastidiously