Airplane insurance is a coverage applied in aviation, covering both the operation of the aircraft and all the risks involved. Airplane insurance is very different from insurance for other transportation means, like cars, due to the high risks involved, and it includes terminology referring to aviation, and certain clauses and limits.
Airplane insurance was introduced in the 20th century, but after only a few years the insurance company stopped doing it, due to loses in the domain. In the 30’s, an international union of aviators insurers was created after it’s been realized that this domain requires such an institution. Today, there are several national airplane insurers, depending n the aviation activity in each country, but the biggest and the most important one is the traditional Lloyds of London, in Great Britain. The Americans have a large percentage in the aviation insurance industry, probably the second after the British, with a large, well established market. There is no insurer with enough financial resources to cover all risks of a major incident, which can cost up to a few million dollars.
There are several types of airplane insurance and they are common all over the world: the public liability insurance, covering to the owners of an aircraft for the damages the plane brings to third parties, such as houses, airport facilities, cars or any other damages provoked by a collision. Then, the passenger liability insurance, for the passengers suffering from an airplane collision or incident, in case they get injured or get killed. A third type of airplane insurance, the combined single limit combines the first two insurance types with a single limit/ accident. This insurance is flexible when claiming for liability. Insurance made to the aircraft and offering protection during all phases of a flight is the in- flight insurance, and this is more expensive than the insurances made to aircraft for when they are in motion. And, there are types of insurance which cover all the expenses for the incidents happening when the aircraft is at the ground, for events like flood, theft, fire, vandalism, animal damage, hangar collapsing or others.
All these insurances are mandatory internationally, so they apply in the United States as well. There are several insurance companies in the United States, and the most well- known are ADN, Aero Insurance Inc, AeroSpace Management Group Inc, Alexander Aviation Insurance, Avemco Insurance Company and many others.