Protect your investment with the right coverage
Aviation insurance for private jet owners is a specialized field that most general insurance brokers are not equipped to navigate. The stakes are high, the policies are complex, and the wrong coverage can leave you dangerously exposed.
Hull coverage: Hull insurance covers physical damage to your aircraft. Policies are written either on an agreed value basis, where you and the insurer agree on the aircraft value upfront, or an actual cash value basis, which factors in depreciation at the time of a claim. Always push for agreed value. It costs more but eliminates disputes about what your aircraft is worth when you need it most.
Liability coverage: Liability insurance covers bodily injury and property damage claims from third parties. For a privately operated jet, most experts recommend a minimum of $100 million in liability coverage. Charter operations typically require higher limits.
Passenger liability: Separate from general liability, passenger liability covers injuries to people aboard your aircraft. Confirm the limits on this separately from your general liability policy.
Crew coverage: If you employ full time crew, your policy needs to address workers compensation and crew-specific liability. If your crew is employed through a management company, confirm whether they are covered under your policy or theirs.
Open pilot warranty: The open pilot warranty defines the minimum qualifications a pilot must have to fly your aircraft under your policy. If a pilot does not meet these requirements and an incident occurs, your claim may be denied. Review these requirements carefully any time you hire contract or relief pilots.
Ground risk hull: Make sure your policy covers the aircraft while it is on the ground and not in flight. Ground risk hull coverage protects against damage during taxiing, hangar incidents, and other non-flight situations.
Hangar keeper's liability: If you store your aircraft at a third party facility, confirm who is responsible for damage that occurs while your aircraft is in their care.
Work with a broker who specializes exclusively in aviation. General commercial insurance brokers rarely have the market relationships or technical knowledge to place private jet coverage competitively. Ask how many private jet accounts they currently manage and which underwriters they work with.
We are building a directory of aviation insurance specialists who work exclusively in the private jet space. In the meantime contact us at chris.rosenfelt@privatejetnation.com with any insurance questions.