Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Commercial LinesMedium
A Florida-based company operates a fleet of small aircraft for aerial photography and surveying services. They are concerned about the financial impact of a total loss of one of their aircraft due to an accident. Which specific aviation insurance coverage would be most relevant to cover the physical damage to their aircraft?
- AAircraft Liability Coverage
- BAircraft Hull Coverage
- CPassenger Legal Liability
- DNon-Owned Aircraft Liability
Show answer & explanationAnswer & explanation
Correct answer: B. Aircraft Hull Coverage
Aircraft Hull Coverage provides protection for physical damage to the aircraft itself, including a total loss, due to perils such as accident, fire, or theft. It is the primary coverage for the value of the aircraft.
Why the other options are wrong
- A. Aircraft Liability Coverage protects against third-party bodily injury and property damage, not physical damage to the insured's own aircraft.
- C. Passenger Legal Liability covers the airline's liability for injury or death to passengers, not physical damage to the aircraft.
- D. Non-Owned Aircraft Liability covers liability arising from the use of aircraft not owned by the insured, not physical damage to owned aircraft.
Aircraft Hull Coverage
Aircraft Hull Coverage provides insurance for physical damage to the aircraft itself, whether it's in flight, on the ground, or while taxing, covering perils like accidents, fire, and theft.
- Covers physical damage to the insured's aircraft.
- Can be 'all risks' or named perils basis.
- Typically includes options for in-flight, on-ground, and taxiing coverage.
Memory trick: When your 'Aircraft' is a 'Hull' of a mess after an accident, this coverage saves your assets!