Aviation Insurance Key Terms

Know the terminology to get the proper aviation insurance
By Cathy Salustri If your company has pilots, planes or both, you've probably looked at the various types of aviation insurance available. Aviation insurance can cover a variety of circumstances that other insurance policies will not. Before you shop around for the right policy, take some time to learn the terminology associated with aviation insurance.

Hull insurance

Hull insurance for your company's airplane will cover the body of the airplane as well as wings, engines and some of the instruments attached to the plane.
Try:  For a full description of hull insurance, as well as some common exceptions, read the glossary entry at AllBusiness.com.

Personal non-owned aircraft liability

When a pilot rents a plane, the person who owns the plane may or may not have an insurance policy that will cover the pilot and passengers if something happens. Personal non-owned aircraft liability offers protection for the person renting the plane. This is similar to non-owned hull insurance, although differences exist.
Try:  The Aviation Publishing Group discusses the ins and outs of personal non-owned aircraft liability.

Aircraft liability insurance

Aircraft liability insurance covers the aircraft owner if the plane's passengers or bystanders are injured as a result of your airplane. Insurance companies may write this coverage in different ways, such as setting a limit per person or per occurrence.
Try:  The EAA discusses aircraft liability insurance, including the different types available and what sorts of coverage your aircraft might need.

Hangarkeepers' liability

Hangarkeepers' liability insurance covers your plane if something should happen to it while it is in storage in another party's hangar.
Try:  Read up on hangarkeepers' liability at International Risk Management Institute.

Grounding coverage

If the Federal Aviation Administration (FAA) or other federal authority grounds your business' airplanes, then grounding coverage should help offset the losses your company might suffer.
Try:  For a more detailed description of grounding coverage, read how the Northwest Insurance Group defines it.

Blocked

If your company tries to get aviation insurance quotes from more than one agent at a time, then you may be blocked from getting an insurance quote. You are not allowed to get quotes from more than one agent at a time.
Try:  Aviation Insurance Resources explains what it means to be blocked and also how you can keep your company from getting blocked when you want to get aviation insurance quotes.