Aviation Insurance – Your Guide to Specialist Cover
Life insurance, car insurance, travel insurance and even pet insurance… these are some of the every-day forms of insurance it’s safe to say that just about everyone is familiar with. Our team works with some of the country’s top insurance providers to source the perfect policy for every individual’s unique needs – but what about the more specialist requests?
At Genesis we’re proud to offer our customers much more than just your regular day-to-day policies. Thanks to our long-standing relationships and vast amounts of industry experience, we are also able to offer a range of specialist insurance policies for your not so day-to-day items of value.
Our latest blog looks at the details of one of these specialist types of cover: aviation insurance.
CLEARED FOR TAKEOFF?
Aviation insurance policies are specially designed to cover the operation of aircraft, and provide protection against some of the risks involved in aviation. These specialist insurance policies incorporate aviation-specific terminology, limits and clauses which are unique to the aviation insurance field.
Aviation Insurance claims worldwide from 2016 to 2020:
- Collision/crash: 30%
- Travel issues (incl. Late deliveries, delays & baggage issues): 13%
- Slips & falls: 13%
- Faulty workmanship/maintenance/defective product: 13%
- Damaged goods (including handling & storage): 7%
- Other: 24%
The statistics above, which are based on analysis of 46,038 aviation insurance industry claims worth more than $17.3 billion, show that aviation insurance can cover a wide range of aviation-related issues.
Let’s look at some of the most common types of cover, and what they provide protection against.
- Aerodrome Owners & Operators Legal Liability insurance: Covers airport owners and operators, hangar-keepers, air traffic control services, maintenance, repair and service facilities, and aircraft refuellers against liability caused by damage to property or injury to persons.
- Public Liability insurance: Covers aircraft owners for damages caused to third-party property, such as public buildings, airport facilities or other aircraft involved in a collision.
- Passenger Liability insurance: Provides cover for passengers who are injured or killed in an aviation accident. This type of cover is mandatory for commercial or large aircraft in many countries, including South Africa.
- Aircraft Hull / Ground Risk insurance: Generally available as either comprehensive or ground risk only cover,, this type of policy provides cover for damage on the ground caused by fire, theft, vandalism, flood, mudslides, animal damage, wind or hailstorms, hangar collapse or for uninsured vehicles or aircraft striking the aircraft.
#DidYouKnow: The use of the insurance term “hull” to refer to the insured aircraft, refers to the origins of aviation insurance in marine insurance.
- In-flight Coverage: Provides cover against damage during all phases of flight and ground operation, including while parked or stored. Since most aircraft are damaged while in motion, this type of cover tends to be the most expensive.
WHO NEEDS IT?
Aviation insurance is utilised by many industries and sectors, including airlines, aerospace manufacturers, airport owners and operators, aviation authorities, flight training schools and operators in the commercial, corporate and private sectors.
The types of aircraft that can be covered include:
- Corporate aircraft
- Agricultural aircraft
- Gliders & microlights
- Rotorwing aircraft (such as helicopters)
WHAT ABOUT DRONE COVER?
As a recreational drone owner, you should be able to insure your drone under your regular home contents or portable possessions cover. However, protection is normally excluded while your drone is in use – in other words damage to the drone whilst in flight, as well as liability for injury or damages to third parties.
As a trained, licensed, and registered owner, you will be eligible for specialised cover available for commercial operators. This can include cover while in use, liability insurance and cover for the drone and its attachments, as well as cover against the hacking of a drone and loss of data.
HOW CAN WE HELP?
Being such a niche area, it’s highly recommended that you consult with your broker before making any decisions on the type of aviation cover you need.
While this form of insurance is highly complex, our team has the knowledge and experience to simplify the process for you, so you can rest assured you have the appropriate level of cover for your unique needs. Get in touch with your broker today if you have any questions.