While long-time owners of aircraft are familiar with the insurance required, often it is not easy for those buying an aircraft for the first time to find their way through the various insurance options.
We have therefore created an overview of the most common insurance segments. The explanations provided are only intended as initial information.
Third party legal liability insurance
This liability insurance covers the legal liability for the use of the insured aircraft. This is a compulsory insurance. The insurance cover also includes the personal liability of all persons involved in the operation of the aircraft.
Aviation liability insurance provides protection in the event of claims for damages asserted on the basis of statutory provisions. The liability insurer checks the validity of claims, pays out if the claim is justified and rejects unjustified claims.
Liability claims based on personal injury and property damage to the occupants or passengers of the aircraft are not covered (see passenger liability insurance).
Passenger legal liability insurance
This insurance covers the legal liability for the carriage of persons and luggage on board aircraft. The insurance covers the personal liability of all persons involved in the operation of the aircraft, including the air carrier who is not the policyholder.
This is an alternative to third party legal liability and passenger legal liability insurance. You will benefit from a combined uniform insurance sum - called combined single-limit (CSL).
Your combined aviation insurance (CSL) includes at least:
• statutory liability for the use of aircraft,
• plus the legal liability of the Carrier for the carriage of passengers and baggage as well as cargo on board aircraft.
If in the event of a damage in respect of passenger legal liability insurance the sum insured is fully exhausted, you participate for example from the higher coverage for third party legal liability and vice versa. The total sum insured of the CSL therefore is adjustable.
Aviation hull insurance offers protection in the event of loss or damage to an aircraft. This insurance covers all risks to which the insured aircraft is exposed up to the amount of the sum insured. Risks during flight operations and on the ground are also covered.
If required, the scope of cover can also be limited exclusively to the ground risk (burglary, vandalism, storm, hail and lightning).
Third-party liability war or hull war insurance
Within the insurance conditions for the aircraft hull and/or liability insurance, damages are excluded which, among other things, are related to war or terrorist events. It is irrelevant whether these occur in one’s own country or in a country currently at risk from these events.
By taking out hull war insurance policy or including the so-called AVN. 52 clause on liability insurance, cover can be obtained for these risks.
In addition to war and terrorist damage, the insurer also covers damage caused by hostile acts such as hijacking the insured aircraft, seizure, acts of sabotage, strike, civil war, insurrection, revolution, rebellion, lock-outs, riots and other orders from higher authorities.
Personal accident insurance
Any person who uses an aircraft in an authorised manner may take out an accident insurance on the basis of a previously agreed sum insured in the event of disability or death. This may be pilots, crew members, trainee pilots, occupants or passengers. In addition to the option of insuring all seats on an aircraft, cover may also be taken out only for pilot seats or passenger seats (seating system) or for named persons.
For pilots and crew members, this insurance is a perfect supplement to the private 24-hour accident insurance, as this usually excludes accident events that occur during active flying or working.
Engine breakdown insurance
This insurance covers damages caused to the engine by internal reasons (material failure, overheating). These are so-called "internal damages". Events that affect the engine from the outside are covered by aircraft hull insurance. These are so-called "external damages".
Get in contact with your maintenance company about how expensive this damage can be. We will be happy to send you the quotation if you provide us the aircraft type, the engine type, the year of construction and the registration number of the aircraft as well as the intended use.
Business interruption insurance
If an aircraft has suspected hull or engine damage or if this has actually occurred, the consequential costs for the operation may be high due to the failure.
Commercial aircraft operators have the option of covering these costs by taking out aircraft business interruption insurance. The indemnification paid by the insurer can then compensate for any additional costs, fixed costs and lost profit.
Depending on the aircraft type and type of operation, a time deductible (e.g. 2 days) and a maximum settlement period (e.g. 20 days) is agreed with the insurer.