While most people are familiar with home, auto, health, and life insurance, fewer people know the details of aviation insurance. However, like other insurance, aviation insurance plays a vital role to many people. But just like various other types of coverage, there are many differences between the many coverage options. Therefore, it is always important that like other insurance policies, those having this coverage should read the fine print and be clear as to the policy’s specifics. If you are planning on purchasing aviation insurance in the near future, here are four major differences between various types of coverage.
1- In-Flight Insurance
For many people who purchase aviation insurance, they automatically assume it will cover everything, including damages sustained during the time the plane is in motion. However, that is not necessarily the case. Instead, many aviation insurance policies fail to cover any damage that may be sustained during the actual flight. Because of this, it is very important for anyone boarding a flight to make sure they have specifically purchased in-flight insurance to ensure any damages sustained during a flight will be covered. However, it is important to note that this type of coverage is generally the most expensive, since most accidents resulting in damages occur during a flight.
2- Motion and Non-Motion Insurance
As we all know, a plane is not always in flight, but spends much of its time on the ground as well. However, even when positioned on a runway or inside a hangar, accidents can still happen. As a result, it is important to understand the major differences between motion and non-motion insurance regarding ground risk hull insurance. When it comes to non-motion insurance, this entails covering damages that are sustained while a plane is on the ground, but not in motion. Common examples of accidents covered by this insurance include accidents due to vandalism, weather events such as hail or lightning, theft, or damages caused by other aircraft or vehicles that are uninsured. Regarding motion insurance, this applies to accidents that happen while the plane is grounded, yet still moving, such as during its taxi or while in the midst of take-off.
3- Liability Insurance
With regards to aviation liability insurance, the two most common types are public and passenger liability insurance. With public liability insurance, a major difference is that this insurance is often regulated by laws in various places, and its primary focus is on providing coverage for damages happening to third-party entities. However, this coverage does not apply to damages done to a plane or passengers inside the plane, and those who apply for this coverage must demonstrate an ability to pay for any damages that occur while they are operating the plane. As for passenger liability insurance, this provides money for injuries sustained to passengers, as well as money for final expenses should a death occur. Often mandatory insurance for certain types of pilots and planes, it often plays a key role in numerous types of claims.
4- Combined Single Limit Insurance
With this type of insurance coverage, it combines various elements of public and passenger liability insurance into a single policy. By doing so, this often makes it easier for pilots and plane owners to purchase the coverage. While it does offer the added advantage of making it somewhat easier to purchase the insurance coverage, it also has a set limit per payout and accident, which can sometimes leave pilots or plane owners responsible for making up the difference in covering damages. Because of this, most pilots and plane owners prefer to purchase public and passenger liability insurance separately. While coverage may cost them more in the long run, they like having the knowledge the policies will be able to cover whatever damages may occur in certain situations.
While these types of insurance coverage have many complexities associated with them, they are nevertheless essential to pilots and plane owners to ensure virtually all types of damages to passengers, aircraft, and other related aspects are covered. But as always, it is important to consult an insurance agent trained in these specialized policies for advice.