Aviation insurance & risk
Aviation insurance terminology
Definitions for a useful review, with links to the distinctions behind the terms.
These short explanations describe review concepts. The definitions in an actual policy or applicable rule control the specific issue.
- Aircraft hull
- Physical damage insurance for the insured aircraft under the selected form, valuation and use provisions. Read the guide →
- Aircraft liability
- Liability insurance associated with accepted aircraft operations; insured definitions and passenger provisions matter. Read the guide →
- Hangarkeepers
- Liability concerning customer aircraft in the business’s care, custody or control, subject to policy wording. Read the guide →
- Non-owned aircraft
- Aircraft the insured does not own, as defined in the relevant policy. Liability and physical damage must be distinguished. Read the guide →
- Products and completed operations
- A liability area concerning supplied products or completed work; the defective product or work itself needs separate analysis. Read the guide →
- Additional insured
- A person or organization afforded insured status under policy wording or an endorsement. The scope depends on the actual provision. Read the guide →
- Loss payee
- A party identified for specified loss-payment rights. Do not treat that status as interchangeable with liability insured status. Read the guide →
- Operational control
- The responsibility for initiating, conducting or terminating a flight in the applicable regulatory context. Specific arrangements require aviation legal review. Read the guide →
- Open-pilot provision
- A policy provision describing pilot criteria. Meeting criteria does not resolve every question about approved use or insured status. Read the guide →
- Certificate of insurance
- Evidence describing insurance; it does not amend the underlying policy or replace endorsements. Read the guide →
- Accumulation
- The combined value or exposure that could be affected by one event, such as several aircraft in a hangar. Read the guide →
- Deductible
- The amount or portion retained under the applicable policy terms. Different losses can have different deductibles. Read the guide →
- Part 135
- A federal aircraft operating framework; it is not an insurance form. Read the guide →
- Part 145
- A federal repair-station certification framework; certification does not establish policy coverage. Read the guide →
A focused conversation
Start with the operation.
Then examine the insurance.
Bring your aircraft or service profile, current policies and key contracts. Identify what needs a closer review.