Have a question about Avemco's Owned Aircraft insurance? Browse through our list of frequently asked questions below. If you still can't find the answer you're looking for, contact us at (888) 241 7891 (M-F 9:00 am to 6:00 pm Eastern). One of our aviation underwriters will be happy to assist you.
- What is liability insurance?
- What limits of liability should I carry?
- What is a "Combined Single Limit of Liability" or "smooth" limit?
- Are my legal costs included in the liability coverage?
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Q: What is liability insurance?
A: Liability insurance protects you against claims arising from Bodily Injury or Property Damage you may have caused to others. Your insurance company's commitment is to defend you if you are sued, and if you are at fault, to pay for the damages according to the terms of the policy. This coverage is not first party medical or life insurance (the policyholder/insured pilot would be a first party), but rather, liability coverage for claims made against you by third parties for which the law holds you legally liable.
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Q: What limits of liability should I carry?
A: Because different people have different needs, there is no standard recommended amount of liability coverage you should carry. You need to consider factors such as your personal assets, earnings, the liability limits you carry on your other insurance policies such as auto or homeowners, whom you carry as passengers, how the aircraft is used, and how much insurance you can afford or that is available, among others. You might also want to ask your insurance representative about the most popular limits purchased by owners of comparable aircraft, although this will probably not be the principal factor on which you rely. Obviously, buying the most coverage you can reasonably afford and that is available is your safest bet. Also remember that as important as the limit of liability is, the ability of your insurance company to resolve claims within those policy limits is just as important. You want to be sure that the company defending you has a proven track record of success in the complex world of aviation litigation.
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Q: What is a "Combined Single Limit of Liability" or "smooth" limit?
A: Most aircraft insurance policies contain liability coverage sub-limits. An example would be, $100,000 Bodily Injury each person per accident/ $1,000,000, Property Damage per accident/ $1,000,000 total each accident for all bodily injury and property damage. With sub-limits, the most that can be collected under each coverage per accident is the stated maximum limit. A combined single limit (CSL), often called a "smooth" limit, has the total stated limit available with no specific sub-limits for Bodily Injury or Property Damage claims.
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Q: Are my legal costs included in the liability coverage?
A: Under Avemco's policy, legal and defense costs are not limited. We continue to pay your legal defense costs even if your limits of liability have been exhausted by the payment of judgments or claims. In addition, our policy also provides up to $5,000 for legal defense costs if a pilot enforcement or civil penalty action is brought against you as a result of a covered accident. Since you may have an FAA action brought against you if you have an accident, this coverage is important. While most policies provide for a legal defense for claims by passengers, very few provide protection for FAA enforcement actions.
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