Q&As

What is aviation and transport insurance?

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Produced in partnership with Hannah Laithwaite of Lamb Chambers
Published on LexisPSL on 02/08/2017

The following Insurance & Reinsurance Q&A produced in partnership with Hannah Laithwaite of Lamb Chambers provides comprehensive and up to date legal information covering:

  • What is aviation and transport insurance?
  • Aviation insurance requirements
  • Types of aviation insurance cover
  • Transport insurance

What is aviation and transport insurance?

Aviation and transport insurance provides financial cover specific to aircraft and transport operations, and the associated risks involved in the aviation and transport sector.

Aviation insurance policies differ from general transport policies by reference to use of specific aviation terminology, limits and clauses.

Aviation insurance requirements

UK aviation insurance requirements arise from Regulation (EC) No 785/2004, as amended by Regulation (EC) No 285/2010. The Regulation as amended specifies minimum levels of insurance required by aircraft operators and air carriers in respect of third-party cover, passenger liability and cover for risks of war and terrorism. The minimum requirements for an aircraft are calculated by reference to maximum take-off weight and passenger numbers.

The Civil Aviation Authority monitors and regulates compliance with the minimum insurance requirements in the UK.

Types of aviation insurance cover

The aviation insurance market is comprised of insurance policies covering a number of different risks:

  1. aircraft hull insurance—provides cover for physical damage caused to an aircraft hull by an accident or other unforeseen event, including war and terrorism. The risk is often broken down into coverage for when the aircraft is not in motion, taxiing and in-flight, with the latter being the more expensive insurable risk

  2. aircraft or public liability—provides third-party liability cover to aircraft operators and carriers, including liability for property damage (for example, damage to houses, vehicles or crops arising from

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