The owners and operators of aircraft are exposed to a wide variety of possible losses, both property and liability. Property losses run the gamut from slight damage done by an airport employee when servicing a private plane to the crash of a jumbo jet. Liability may be imposed by statute, international convention, or tort.

Property Exposures

Aircraft are exposed to many of the same hazards as an automobile. When stored, they face possible loss from fire, collapse, theft, vandalism, etc. When sitting in the open, they are also exposed to wind and hail. While taxiing or being towed at the airport, there is the possibility of collision with the surface, vehicles, buildings, or other aircraft. However, the largest—and possibly most catastrophic exposure—occurs when the airplane is in flight. The pilot is often forced to make quick decisions because of the environment, which can be severe.

Aircraft physical damage insurance is often written with three options: “all risks” of physical loss or damage while not in motion; “all risks” of physical loss or damage while not in flight; and “all risks” of physical loss or damage to the aircraft.