Organizations utilize aircraft owned by third-parties for a variety of business-related purposes—from chartering flights for executives to commissioning fly-overs for research. However, when accidents occur involving these aircraft, businesses could unknowingly be at risk for the resulting injuries or property damage.
Most commercial general liability policies exclude claims related to the use or operation of aircraft. What’s more, businesses may still be considered at fault, regardless of whether or not they own the aircraft involved in a claim.
2. Non-owned Aircraft Liability Coverage for Businesses
lower the seating capacity, the lower the
premium.
• Aircraft damages. Standard non-owned aircraft
liability insurance typically excludes coverage for
any damage to the aircraft.
• Areas of flight. Most policies consider the
United States, Canada and Mexico the standard
territories. If you plan to charter or utilize
aircraft outside of those regions, it may be
difficult to secure adequate coverage. While it is
possible to find non-owned aircraft liability
coverage for non-standard territories, premiums
are often more costly than traditional policies.
• War, terrorism and hijacking. Standard non-
owned aircraft liability policies typically exclude
acts of war, terrorism or hijacking. Businesses
concerned about this exposure would have to
seek out other policies to address any gaps in
coverage.
Managing Your Exposures
In addition to purchasing non-owned aircraft liability
insurance, there are a number of strategies businesses
can utilize to limit their exposures—allowing
organizations to prevent claims before they occur. Above
all, it’s important for businesses to communicate their
policies regarding chartered flights and the use of non-
owned aircraft to employees and leadership.
The following are three other important considerations:
1. Log any aircraft usage within your business. This
will ensure that you are aware of all potential
exposures.
2. Examine the qualifications of employee pilots
thoroughly, if applicable. Take care to assess the
number of hours they have logged in the air and
what types of aircraft they are comfortable
utilizing.
3. Businesses should always request a certificate of
insurance from the aircraft operators they
employ. Certificates of insurance should be
include a cross-liability clause, a waiver of
subrogation and sufficient levels of liability
coverage to reduce potential exposures.
Getting Started
Whether you’re concerned about your coverage
exposures when chartering flights or utilizing employee
pilots, SterlingRisk is ready to assist you. Purchasing non-
owned aircraft liability insurance is complex, and the
policies may differ depending on the type and severity of
exposures.
Don’t wait until it’s too late to get protection. Call us at
516-487-0300 today for more information on this and
other types of policies.