9 Potential Risks Covered by Aviation Insurance
There’s more to the aviation industry than planes. Insurance for this industry needs to encompass all the various moving parts. From the hangar to the runway, it all has to be covered. To insure these unique risks, specialized knowledge is a must. Here are 9 potential risks covered by aviation insurance:
1. General Liability
Risk Factor
Flying an aircraft comes with some inherent risks, not only to the person operating an aircraft and its passengers, but also to the general public. If there is a mishap that involves damage to property or the general public you, as the pilot in command, are liable to the public.
Solution
Public liability insurance, often referred to as third-party liability, covers aircraft owners for damage that their aircraft does to people and property, not including the passengers on the aircraft.
2. Non-Owned Aircraft Insurance
Risk Factor
Borrowing or renting an aircraft? Taking flying lessons? Chances are you still have a risk exposure that may not be covered by the aircraft owner’s insurance.
Solution
Non-owned aircraft insurance protects you from legal obligations that may arise out of operating an aircraft you do not own. In addition, it provides for extra expenses including search and rescue, emergency flight coordination, legal expenses, and more.
3. Hull Insurance
Risk Factor
Aircrafts are very expensive, as are repairs to them. Strict regulations require planes to be in a certain condition in order to fly. One brush against a hangar or other damages to your aircraft can lead to some very large repair bills.
Solution
Hull insurance protects your aircraft in case of damage. There are different types, such as in motion and not in motion, as well as full flight protection. Premiums and deductibles on hull insurance can vary based on the value of the aircraft.
4. Employment Practices Liability Insurance (EPLI)
Risk Factor
On average, it’s estimated that three out of five businesses will be sued by their employees. Companies are vulnerable during the pre-hire process, throughout employment, and during a reduction in workforce. Claims can be made by clients or potential clients and can arise in any size operation. You can do everything right and still be sued.
Solution
Coverage to protect you against this risk normally comes as a standalone policy. The right coverage is critical to your risk management process as it protects against discrimination, wrongful termination, sexual harassment, and other employment-related allegations. Typically, the policy will cover your business as well as your directors and officers. Third-party coverage is an added option, usually accomplished via a policy endorsement, and addresses claims made by customers or vendors against you from acts committed by employees.
5. Hangar Keepers
Risk Factor
Hangar owners face unique risks for property in their care, custody, or control, as well as the hangar itself.
Solution
Hangar keepers insurance provides protection to the owner of the hangar for the building and the contents of others inside the hangar. It can also provide coverage for tools and equipment. Hanar keepers can be a standalone coverage or part of an airport’s insurance package.
6. Passenger Liability Insurance
Risk Factor
Whether you are in the business of transporting people or you simply like to take people for rides to share the joy of flight with them, as the pilot in command, you are taking on the responsibility for their safety. Hold harmless and liability waivers are of little protection, if any, for pilots.
Solution
Passenger liability insurance protects passengers riding in the aircraft who are injured or killed. Coverage is often sold on a per-seat basis, with a specified limit for each passenger seat.
7. Workers’ Compensation
Risk Factor
If one of your employees receives an injury or becomes ill due to a work-related occurrence, you are required by law to have the proper coverage in place. Working with tools, machinery, and aircraft can be an even riskier occupation than most.
Solution
Workers’ compensation protects your employees should a job-related injury or sickness occur during the course of employment. This coverage is required by law, so be sure that you have it. Placing workers’ compensation for an aviation operation can be particularly difficult, so having an insurance advisor who understands the industry is crucial.
8. Cyber Liability
Risk Factor
The internet has spun a whole new web of liability exposures. E-commerce, social networking, cloud storage, and other technologies bring great benefits to all businesses. But with these benefits also come challenges, including protection of privacy, data, and financial information of your employees and students.
Solution
Cyber liability coverage covers unauthorized access to electronic data or software within your network. It also provides coverage for spreading a virus, computer theft, extortion, or any unintentional act, mistake, error, or omission made by an employee. This coverage is quickly becoming more and more important as you embrace technology.
9. Umbrella / Excess Liability
Risk Factor
What happens when your operation faces a large liability loss that excess the basic limit of your standard policy?
Solution
A commercial umbrella policy provides high limits of insurance, typically between $2,000,000 and $10,000,000. Coverage is extended over your general liability insurance, workers’ compensation, business auto, as well as directors and officers liability coverage. It provides a great safety net and helps ensure your business is well protected.
Get Coverage Today!
The Satanoff Agency, located in Wayne, PA, is an independent insurance agency based in 42 states across America, working to supply our customers with quality assistance and insurance. Our independent agents offer their services to help you as the customer get the unique coverage you need.
To request a quote for aviation insurance, click here and we will have one of our agents contact you.
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