Hull insurance covers the physical damage to the aircraft.
It covers for the losses to the aircraft when it is stationary or in motion. The insurance premiums are generally higher for coverage of aircraft’s in motion. Aircraft hull insurance provides many coverage options and covers the operations of the aircraft on ground as well as in air.
There are three kinds of insurance coverage for aircraft hull insurance
- Ground only : It covers the aircraft for the losses when the plane is on ground and not in motion. This insurance policy protects the aircraft from losses due to fire, storm, hanger collapse, flood and hail storms. The coverage amount may be decided at the time of purchasing the insurance policy.
- Ground risk hull insurance (taxiing): It covers all risks similar to ground only and also covers risks while the aircraft is taxiing which includes hitting a hanger and hitting a parked plane. This insurance policy covers only when the plane is taxiing and not while it is taking off or landing.
- During flight: It covers all the risks during flight. Most aircraft’s face more risks while in motion, thus the premium for this kind of coverage is higher as compared to the other two.
Aircraft hull insurance needs to be decided very carefully. Overvaluing the aircraft will result in higher premium which will not be economical for owners and undervaluing will result in owner getting less compensation than the actual. For owners it is very essential to evaluate the insurance quotes properly and choose the cover suiting their needs. Those who are new to the aviation business should consider buying all the risk covers as the risk of aircraft getting damaged is more.
