Aviation is a business of very low frequency and very high severity — incidents are rare, but a single one can be catastrophic. Aviation insurance is a specialised discipline that protects aircraft, operators, airports and the wider industry against exactly that profile of risk.
What aviation insurance is
Aviation insurance is specialised cover foraircraft and aviation businesses, combining hull (physical damage to the aircraft) with liability (to passengers and third parties). Because the values and exposures are so large, it is placed in specialist markets and heavily supported by reinsurance.
The main covers
Aircraft Hull All Risks
Physical loss of or damage to the aircraft — in flight, taxiing and on the ground.
Hull War
Loss or damage from war, hijacking and allied perils, bought back separately.
Aviation Liability
Legal liability for passenger injury and third-party bodily injury or property damage.
Spares & equipment
Cover for engines, parts and ground equipment.
Airport and ground risks
Beyond aircraft, the sector needs cover forairport owners’ and operators’ liability, hangarkeepers’ liability, refuelling and ground-handling operations, and aviation product liabilityfor those who manufacture or service parts. Airports also carry substantial property, business-interruption and terrorism exposures given their scale and public footfall.
Aviation liability explained
Aviation liability spanspassenger liability, third-party liability and premises liability, typically written to a highcombined single limitbecause a single incident can affect many people at once. The catastrophic potential is precisely why limits are set so high and placement is so specialised.
Who needs it
Airlines and charter operators, flying schools, drone and UAV operators, maintenance and repair organisations (MROs), airports and ground handlers, and manufacturers and suppliers of aviation parts and services.
How limits and values are set
| Hull | Insured at an agreed value for each aircraft. |
| Liability | A combined single limit, commonly denominated in US dollars. |
| War | Separate hull and liability war limits. |
What it does not cover
Typical Exclusions
- •war and allied perils, unless bought back;
- •wear and tear and progressive mechanical deterioration;
- •operation outside agreed geographical, use or crew limits;
- •unlicensed or non-airworthy operation.
At the time of a claim
Aviation claims involve specialist global adjusters and a regulatory interface (in India, the DGCA). Immediate notification and preservation of records and the aircraft/site are essential, given the technical investigation that follows.
How Aurevian helps
Aviation is a specialist placement requiring access to the right markets and reinsurance. Aurevian helps youstructure hull and liability limits, arrange war buy-backs, align cover with your operations and regulatory obligations, and manage claimsin a market where wording and market relationships genuinely matter.
“In aviation, losses are rare — and when they come, only a properly structured programme can absorb them.”
