HYPOTHETICAL EXAMPLE
An operational scenario
An owner and manager disagree about damage during a maintenance repositioning flight. Their contract assigns some operating duties to the manager but leaves the insurance and deductible provisions unclear.
Illustrative example only; this is not a Montridge client or reported claim.
The insurance distinction
A contractual allocation of risk creates obligations between parties. The insurer’s duties remain controlled by the policy, including insured definitions, accepted uses, exclusions and endorsements.
What to examine
Review procurement, insured interests, training, use approval, reporting, deductibles, subrogation and termination. Compare the insurance clause with indemnities and operating authority; legal interpretation belongs with qualified counsel.
Evidence to gather
- Management agreement and amendments
- Aircraft policy and endorsements
- Operating and maintenance responsibility schedule
- Crew and third-party service contracts
Questions for your review
- Who must notify the insurer of a material change?
- Who bears deductibles and uninsured contractual obligations?
- How is coverage maintained during transition?
References and review status
- FAA Part 135 general certification requirements
Operating certification and applicable air-carrier insurance filing context - 14 CFR Part 205 air-carrier insurance
Applicable direct air carriers; not every aircraft owner
References support the indicated background topic. Review questions are educational analysis; no specific policy specimen has been supplied. Source checks: November 12, 2026.