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What is aircraft liability insurance?
Aircraft liability is just one part of an aircraft insurance policy. The other parts insure the value of the aircraft for partial or total loss, and medical expenses incurred by occupants in the aircraft, other than medical expenses that are part of a liability insurance claim.
Aircraft liability insurance applies to the named insured’s legal obligation for bodily injury including death incurred by someone other than the named insured and property damage to property owned by someone other than the named insured arising out of the ownership, maintenance, or use of the insured aircraft. The insurance policy between the insurance company and the named insured forms a partnership whereby the named insured pays the insurance company money (premium) and the insurance company agrees to defend and indemnify the named insured (i.e., be financially responsible for the named insured’s legal obligations).
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