Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Commercial LinesMedium
A Florida-based airline operates a fleet of cargo planes for domestic and international shipments. They are seeking coverage for legal liability arising from damage to cargo they are contracted to transport. Which specific aviation insurance coverage would address this risk?
- ACargo Legal Liability
- BAircraft Hull Coverage
- CAirport Liability
- DPassenger Legal Liability
Show answer & explanationAnswer & explanation
Correct answer: A. Cargo Legal Liability
Cargo Legal Liability insurance specifically covers the airline's legal liability for loss or damage to cargo it is transporting. This is distinct from hull coverage (for the aircraft itself) or passenger liability.
Why the other options are wrong
- B. Aircraft Hull Coverage protects the physical aircraft itself, not the cargo it carries.
- C. Airport Liability covers the airport operator's liability for premises-related incidents, not the airline's liability for cargo in transit.
- D. Passenger Legal Liability covers the airline's liability for injury or death to passengers, not damage to cargo.
Cargo Legal Liability (Aviation)
Cargo Legal Liability in aviation insurance covers the air carrier's legal liability as a bailee for loss or damage to cargo entrusted to them for transportation.
- Covers the carrier's responsibility for goods being shipped.
- Applies to damage, destruction, or disappearance of cargo.
- Distinct from hull or passenger liability coverage.
Memory trick: When your 'Cargo' flies, and there's a 'Legal' issue with it, you need 'Cargo Legal Liability'!