Florida 2-20 General Lines Agent (Property, Casualty, Commercial Lines and Florida Law)Commercial LinesMedium
A Florida-based company operates a fleet of cargo planes for domestic and international shipping. They are responsible for the safe delivery of various goods, including high-value electronics and perishable items. If a shipment of electronics is damaged during transit due to the airline's negligence, which specific Aviation insurance coverage would protect the airline against claims from the cargo owners?
- APassenger Legal Liability
- BAircraft Hull Coverage
- CAviation General Liability
- DCargo Legal Liability
Show answer & explanationAnswer & explanation
Correct answer: D. Cargo Legal Liability
Cargo Legal Liability coverage in an Aviation policy specifically protects the airline (carrier) against claims for loss or damage to cargo belonging to others, when the carrier is legally liable for such loss or damage. This is distinct from liability for injury to persons or damage to the aircraft itself.
Why the other options are wrong
- A. Passenger Legal Liability covers the airline's liability for bodily injury or death to passengers, not damage to cargo.
- B. Aircraft Hull Coverage protects the physical aircraft itself from damage, not the cargo it carries.
- C. Aviation General Liability provides broad liability coverage, but Cargo Legal Liability is a specific component or separate policy for the cargo itself.
Aviation: Cargo Legal Liability
A component of Aviation insurance that covers the legal liability of an airline or air cargo carrier for loss or damage to cargo belonging to others while in the carrier's care, custody, or control during air transit.
- Covers carrier's legal liability for cargo.
- Applies to loss or damage of goods in transit.
- Distinct from hull or passenger liability.
Memory trick: Aviation Liability: Think 'PEOPLE, PLANES, PACKAGES'.