DEFINITION of 'Aviation Accident Insurance'

Aviation Accident Insurance provides coverage for injuries resulting from an aircraft accident. Aviation accident insurance covers injuries sustained by pilots as well as travelers, with the type of coverage typically accidental death and dismemberment (AD&D).

BREAKING DOWN 'Aviation Accident Insurance'

While the likelihood of sustaining an injury during a flight is low, the potential for accidental death or injury is a risk that can be insured against. Because the demand for aviation accident insurance is less than the demand for many other types of insurance, such as general liability or life insurance, the number of insurance companies offering this type of policy is relatively small.

Types of Aviation Coverage

Some insurance policies will exclude injuries sustained while aboard an aircraft, sustaining a demand for coverage by travelers. An aviation exclusion on a life insurance policy, for example, will exclude injuries sustained while aboard a small aircraft if it is deemed to not be part of a regularly scheduled airline.

Companies may purchase aviation accident insurance to cover employees who are traveling for business. The policy will provide payment to an employee (or his or her beneficiaries) in the case of death, dismemberment, or disability, and may provide coverage for trips to and from the airport. This type of policy is a group policy, meaning that the individual employees are covered under a master agreement.

Airlines typically purchase a different type of aircraft liability coverage for employees serving as the pilots or crew of a commercial aircraft. The premiums for this type of policy may differ from that of a policy purchased by a non-aviation commercial enterprise because pilots and crew are exposed to a greater set of aviation hazards, including flying to and from different airports in various weather conditions on a frequent basis. This type of policy may also be more expensive if the planes are operating in areas with less developed airports and flight management systems.

"About a dozen underwriters provide general aviation insurance. Some of the major players include AIG, Global Aerospace, Starr Aviation, Phoenix Aviation Managers and USAIG. Major brokers include AOPA Insurance Services, Falcon Insurance and Hardy Aviation Insurance. There is also one underwriter you can purchase a policy from without a middleman — Wichita, Kansas-based Avemco," according to Flying Magazine. "Many underwriters will quote only a specific risk to one broker, a system referred to as locking rates, which makes it difficult to shop around. The aviation insurance business is quite specialized, so you will likely get good service from whichever broker you decide to do business with."

RELATED TERMS
  1. Personal Injury Protection - PIP

    Personal injury protection is a feature of auto insurance that ...
  2. Aircraft Insurance

    Aircraft insurance provides liability and property coverage of ...
  3. Accident And Health Benefits

    Accident and health benefits are supplemental benefits provided ...
  4. Business Insurance

    Business insurance coverage protects businesses from losses due ...
  5. Auto Insurance

    Auto insurance is purchased by vehicle owners to mitigate costs ...
  6. Medical Payments Coverage

    Medical payments coverages is part of an automobile insurance ...
Related Articles
  1. Insurance

    5 Insurance Policies Everyone Should Have

    Insurance policies come in a variety of shapes and sizes. The right policies will go a long way toward helping you protect your assets.
  2. Insurance

    The Basics Of Travel Insurance

    Before going on your trip, find out what kind of insurance coverage you will need.
  3. Insurance

    When Should You Get Supplemental Life Insurance?

    For individuals with larger families and responsibilities, supplemental life insurance may bridge the shortfall in coverage from term or whole-life policies.
  4. Financial Advisor

    7 Issues to Consider When Determining Life Insurance Coverage

    Seven issues to consider when buying life insurance to ensure the coverage is tailored to meet your personal financial situation.
  5. Insurance

    Car Insurance Add-Ons That May Be Worth The Money

    Many auto insurance add-ons are unnecessary in most situations and will simply drain money out of your pocket. There are several that are worth adding on to make sure that you are adequately ...
  6. Insurance

    How Much Life Insurance Should You Carry?

    Before purchasing life insurance it is important to decide if you really need it, what type of policy is best, and how much coverage you should get.
  7. Financial Advisor

    Buying a Life Insurance Policy? Read This First

    Knowing who needs life insurance, how it works and the different types of insurance can help consumers make informed decisions about this product.
  8. Insurance

    4 Things That Keep You From Getting Life Insurance

    We look at four common reasons people give for not applying for life insurance, and see if they're legitimate.
  9. Insurance

    12 Insurance Questions for High Net Worth Families

    High net worth families should ask themselves these 12 questions regarding comprehensive insurance.
Hot Definitions
  1. Current Assets

    Current assets is a balance sheet account that represents the value of all assets that can reasonably expected to be converted ...
  2. Volatility

    Volatility measures how much the price of a security, derivative, or index fluctuates.
  3. Money Market

    The money market is a segment of the financial market in which financial instruments with high liquidity and very short maturities ...
  4. Cost of Debt

    Cost of debt is the effective rate that a company pays on its current debt as part of its capital structure.
  5. Depreciation

    Depreciation is an accounting method of allocating the cost of a tangible asset over its useful life and is used to account ...
  6. Ratio Analysis

    A ratio analysis is a quantitative analysis of information contained in a company’s financial statements.
Trading Center