dfwjim1
Topic Author
Posts: 2193
Joined: Fri Sep 09, 2011 8:46 pm

What type of insurance do airlines carry?

Tue Aug 13, 2019 3:38 pm

I am curious as to what kind and type of commercial insurance policies that airlines especially the larger airlines like British, United, Air France...etc carry. I suppose the answer varies depending on what country the airline is based/incorporated in but in general do airlines carry policies from private insurers for all of their operations or do they do a combination of using outside insurers and self insuring?

Thanks for your responses.
 
BravoOne
Posts: 3439
Joined: Fri Apr 12, 2013 2:27 pm

Re: What type of insurance do airlines carry?

Tue Aug 13, 2019 7:57 pm

Loydds of London? Most airlines are not covered for "punitive damages " associated with and accident, and to my knowledge no US airline has ever had punitive damages applied in a settlement.
 
787SIN
Posts: 27
Joined: Thu Mar 09, 2017 6:00 am

Re: What type of insurance do airlines carry?

Fri Aug 16, 2019 8:37 am

Airlines will almost certainly all have some form of Hull All Risks insurance. This will cover the aircraft on an agreed value basis for insurable events and associated liabilities. It also covers many other things such as aircraft spares. Search for AVN1C and you will see what the basic foundation of the policy is. For the aircraft side of things, it will cover Insurable events from USD1.0 million upwards for widebodies, USD750K for narrowbodies like A320s and there are other starting points for smaller aircraft. Anything below these amounts then it is for the operator to cover unless they take out additional insurance to insure their excess which then may mean their excess payable could be as low as around $50K for an A320.
 
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Horstroad
Posts: 492
Joined: Thu Apr 08, 2010 8:19 pm

Re: What type of insurance do airlines carry?

Fri Aug 16, 2019 2:52 pm

here is an insurance coverage example for a wide body aircraft:

Combined single limit USD 1,400,000,000.00 any one aircraft / any one occurrence including:
700.000.000.00 for aircraft third party legal liability (bodily injury and property damage)
250,000.00 per passenger for bodily injury
4,700.00 per passenger delayed carriage of passengers
1,150.00 per passenger for damage of baggage delayed carriage of baggage
19.00 per kilogram for damage of cargo
 
stratosphere
Posts: 1672
Joined: Sat Sep 22, 2007 12:45 pm

Re: What type of insurance do airlines carry?

Fri Aug 16, 2019 10:02 pm

GEICO
 
strfyr51
Posts: 3830
Joined: Tue Apr 10, 2012 5:04 pm

Re: What type of insurance do airlines carry?

Wed Aug 21, 2019 11:34 pm

Not all Airlines even Have insurance policies. I know that United is self insured. you could check with some of the other carriers.
 
787SIN
Posts: 27
Joined: Thu Mar 09, 2017 6:00 am

Re: What type of insurance do airlines carry?

Thu Aug 22, 2019 7:59 am

I'd be surprised if United is fully self-insured, especially in the US with the potential exposure to liability costs. Also, most lessors will stipulate as part of a lease agreement that Hull All Risks insurance is required to protect their interests, unless of course, United does not lease a single aircraft of which I do not know.

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