Aviation Insurance

Aviation insurance at a glance

What is aviation insurance?

While the aviation industry has stringent safety standards, flying carries some serious risks – both on land and in the air. So whether you’re a private pilot or you fly as part of an airline, it’s important to protect your business with aviation insurance.

With the right aviation insurance, your business can be covered for risks such as aircraft damage, third party, passenger injury or third party property damage claims.

“The accident and fatal accident rates for general and recreational aviation reflect the higher-risk operational activity when compared to air transport operations. They also reflect the significant growth in recreational aviation activity over the last ten years.”

The Australian Safety Transport Bureau, 2018

Who should consider it?

Aviation insurance can cover all aircraft, including airlines and private planes, pilots, refuellers, operators of hangars and baggage handlers.

Whether you fly for a living or for pleasure, you should consider the protection offered by aviation insurance.

Did you know?

In 2016, almost 230 aircraft were involved in accidents in Australia, while 291 aircraft experienced a serious accident (an accident with a high probability of an accident)

(Australian Transport Safety Bureau, Aviation Occurrence Statistics – 2007 to 2016, 2018)

The most common incidents in 2015 were wildlife strikes, issues with aircraft systems and weather-related issues.

(Australian Transport Safety Bureau, Aviation Occurrence Statistics – 2007 to 2016, 2018)

Aircraft movements in Australian airports increased by 33% between 2001-02 and 2014-15.

(Department of Infrastructure and Regional Development, Aviation Rescue and Fire Fighting Services Regulatory Policy Review, 2015)

What can it cover?

Depending upon the policy, aviation insurance can cover:

Type of cover Potential benefits
Aircraft aerial application liability Covers liability arising from chemical drift and is generally for aerial agriculture businesses.
Aircraft hull and liability This is the primary insurance for all aircraft owners – the policy covers loss or damage to your aircraft; and third party or passenger liability arising from an accident.
Aircraft non-ownership liability For private pilots, charter operators and other non-owners – the policy covers liability arising from the hire or charter of aircraft
Hangar keeper’s liability For businesses operating in and around airports – hangars keeper’s liability can be used in tandem with an aviation business pack to cover liability for damage to aircraft on the insured premises and/or under your care. It can also cover liability arising from the sale of aircraft products or the provision of aviation service.
Remotely piloted aircraft (RPA) For people who own and operate remotely piloted aircraft cover for accidental damage, plus personal injury and property claims arising from an RPA accident.
Specialist cover For ground handlers, refuellers and businesses operating in or around airports.

What usually isn’t covered?

Exclusions, the excess you need to pay, and limits of liability can vary greatly depending on the nature of the product you are purchasing, the associated risk and the insurer.

Aviation insurance involves a range of different policies and there are exclusions which are specific to each type of policy.


A plane awaiting repairs is damaged when a fire breaks out – caused by someone working on another aircraft in the same hangar.

The plane is damaged beyond repair – but the owner’s aviation insurance means they will be compensated for the value of the plane – so they can replace it with one of a similar value.