Aircraft Charter Insurance
✈️ Why Standard Liability Coverage May Not Cut It for Charter or Instruction Flights
When you fly passengers for hire or provide flight instruction, your risk profile changes dramatically. Yet many operators rely on basic liability limits that simply don’t match the potential exposure.
The truth is, one serious claim could bankrupt a business that thought it was fully covered — but wasn’t.
What’s Different About Charter and Instruction?
Charter operations (Part 135) and flight schools (Part 61 or 141) carry unique risks:
More frequent takeoffs and landings
Passenger injuries or fatalities
Third-party property damage
Liability for students flying solo under your certificate
In these scenarios, your exposure can reach millions — especially if passengers or their families pursue legal action.
The Problem with “Standard” Liability
Many smaller operators or flight schools stick with minimum required limits, often between $1M–$2M per occurrence. That might sound like a lot — until you consider that:
A single passenger fatality lawsuit can exceed $1M–$5M easily.
Multiple injured passengers can multiply that exposure.
Legal fees alone can burn through hundreds of thousands of dollars.
One incident can push past standard limits overnight.
A Real Example
A charter company carried $1M in liability coverage. After an engine failure resulted in an off-airport landing, several high-net-worth passengers were injured. Legal fees, medical costs, and settlements totaled $4.2 million. The operator was left personally liable for the uncovered $3.2 million gap.
How to Know If You’re Underinsured
Ask yourself:
✅ What’s the maximum number of passengers per flight?
✅ What is the potential financial impact of multiple injuries or fatalities?
✅ Do you operate in areas with high legal settlements?
✅ Do you have exposure to VIP or corporate clients with higher liability potential?
If your limits don’t realistically cover a worst-case scenario — you’re likely underinsured.
Tips to Get It Right
✔️ Work with an aviation-focused broker. General commercial brokers often miss industry-specific risk factors.
✔️ Reassess limits annually. Charter and instruction operations change rapidly — new routes, new clients, new risks.
✔️ Consider excess liability or umbrella coverage. Extra layers are affordable and can save your business.
✔️ Communicate with clients. High-end clients may expect minimum coverage levels for peace of mind.
Final Thought
Aviation is inherently risky — that’s why your clients pay you to fly them safely. But your insurance must fly at the same altitude as your operations.
Underestimating your liability limits can clip your wings in an instant — so make sure you’re protected for the real-world risk of putting people in the sky.
Want help reviewing your liability limits?
📞 Contact me today for a no-obligation policy check-up. Let’s make sure your coverage actually covers you.
