As the owner of a charter flight company, you likely have a robust liability insurance policy to protect yourself from passenger and pilot lawsuits. However, you could be at risk of even greater losses if you did not take the same precautions with your property damage insurance. Attorney Bill Voss explores the differences in various fire damage insurance coverages for airfields and charter flight companies, allowing owners to make changes to their policies before it’s too late.
Fire Insurance Considerations for Charter Flight Companies
The amount you receive for your fire damage claim will depend on the insurance options you select to cover your charter flight operation. If your policy is not tailored specifically to the type of business you run, you may find your claim underpaid or outright denied.
For example, you may receive less than you expected after a fire if your commercial flight insurance policy has exclusions regarding:
- Nature of the accident. Property damage insurance for aircraft, generally known as hull damage coverage, comes in many different forms. If you have selected ground-only coverage, your aircraft are only protected while they are on the ground and not in motion—and if a fire occurs when an aircraft is taxiing away from a gate, your insurer can refuse payment. The easiest way to ensure payment is to select all-risk coverage, which pays for damage regardless of whether the plane is on the ground, taxiing, or in flight.
- Type of aircraft. It may be beneficial to select coverage for the specific type of aircraft your business offers. For example, farmers may require agricultural aviation coverage, while museums may need antique aircraft insurance to cover the costs of replacing bespoke leather seats or wooden wings.
- Extent of damage. A fire on the ground may spread throughout the hangar, damaging other aircraft, vehicles, mobile staircases, spare parts, or expensive tools. Hangar insurance provides property damage coverage for your hangar and anything housed inside.
- Restoration period. Business interruption insurance will cover ongoing operating expenses as you rebuild, but may only cover up to six months of losses. This can be extended by choosing a higher policy limit, or selecting extra expense coverage (which can pay for rental costs for alternate aircraft while yours are under repair).
If you need help getting payment for your losses after a fire, our commercial insurance claim attorneys can work to get you full and fair compensation to make repairs and reopen your doors. Please contact the Voss Law Firm at 1-888-991-3212 or simply fill out the form on this page today to get answers to your questions.
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