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.

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Non-owned Aircraft Liability
Coverage for Businesses
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.
To protect themselves and to fill any gaps in coverages,
businesses can turn to non-owned aircraft liability
insurance.
What Is Non-owned Aircraft Liability Insurance?
Non-owned aircraft liability insurance provides coverage
to businesses in the event that they become liable for
claims related to third-party injuries and property
damage resulting from the use of aircraft not owned by
the business itself.
This type of coverage is particularly useful for a business
that does the following:
• Utilizes a charter aircraft to transport senior
executives. Many companies charter flights through
third-parties to shuttle their leaders to and from
important meetings. However, in the event of an
accident, claimants may target a business for
damages, regardless of whether or not they own the
aircraft or employ the pilot.
• Allows its employees to charter flights during
normal business activities. This exposure is
similar to the one above. However, in some
cases, companies may not be aware that their
employees are chartering flights during off-site
business activities until it’s too late—which
could further complicate the claims process.
• Utilizes aircraft for research or other business-
related activities. Common activities include
utilizing aircraft for the exploration of resources,
aerial photography and aerial advertising. In
cases like these, even if an employee is not on
board during an incident that initiated a claim,
companies could still be exposed to potential
losses.
• Has an employee with a pilot licence. These
employees may fly aircraft during normal
business activities. When this happens, there’s a
potential for an incident to occur in which the
employer would be at fault.
What to Consider When Choosing a Policy
Like most policies, there is no “one-size-fits-all”
approach to non-owned aircraft liability insurance.
That said, there are a number of policy details to
consider when weighing your options:
• Limits of liability. In most cases, policy limits
range from $5 to $100 million.
• Aircraft restrictions. Certain aircraft may be
restricted from coverage, typically based on its
seating capacity. The general rule is that the

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.