Liability Insurance

Aircraft liability insurance covers bodily injury and property damage caused to third parties and passengers, priced by the coverage limit you carry (from around $1M up to $100M 'smooth' on larger aircraft). Higher limits cost more, but not proportionally. Most owners carry it alongside hull cover.

Why it matters: liability cover responds to the harm an aircraft can do to people and property — the exposure with genuinely unbounded downside. For any operator, and especially anyone carrying passengers, liability limits are the part of the policy that protects the balance sheet.

The detail that matters most is how the limit is structured: a smooth limit applies in full to any claim, while sub-limits cap what any single passenger can recover — a distinction that only becomes visible after an accident. Charter clients, financiers and corporate risk teams routinely specify minimum limits and structures, so cover also determines what work the aircraft may do.