Most general liability policies (other than specific aviation or marine policies) exclude coverage for liability arising out of the use and maintenance of aircraft and watercraft. Although aircraft and watercraft losses are rare, many underwriters are reluctant to insure this potentially catastrophic exposure.

Coverage is excluded for bodily injury or property damage arising out of the ownership, maintenance, use or entrustment to others of aircraft or watercraft owned, operated by, rented or loaned to any insured. The term use includes operation and loading or unloading.

An exception to the exclusion applies with respect to watercraft while ashore on premises owned or rented by the insured. The exclusion also does not apply to any non-owned watercraft that is less than 26’ long, provided it is not used to carry persons or property for a charge. Liability assumed under any insured contract for the ownership, maintenance or use of aircraft or watercraft is also excepted from the exclusion.