Aviation Risk Management

What is it?

Non-owned aircraft liability coverage offers protection to individuals and companies that lease, charter or borrow private aircraft owned and operated by a third party. 

What are the risks?

If you or your company lease, charter or borrow private aircraft, you could be exposed to liability if an accident occurred and caused injury or property damage to third parties. Non-owned aircraft liability insurance may provide coverage should your company become legally liable for this type of occurrence so long as the aircraft is not partly or wholly owned or registered in the name of the company.

Who needs it?

The entertainment industry uses aircrafts in a variety of ways. For example, a production company may charter a helicopter for an aerial photography sequence or a music group may charter an aircraft to transport its artists and crew to a show. If there is use of any chartered aircraft it is worthwhile to have a conversation with your insurance broker.

Risk Management Tactics

1. Verify limits. It is important to make certain when chartering an aircraft that sufficient limits of liability are carried by the owner for each aircraft they own. 

2. Obtain certificates of insurance. It is always recommended that the Owner of the Aircraft provide a Certificate of Insurance showing evidence of the Owner’s Aviation Liability and Hull Insurance. The Certificate of Insurance should contain the following information:

  • Name and address of the insured.
  • Insurance carrier, policy number, effective dates, liability limits, approved uses and approved territory. 
  • Hull coverage (physical damage to the aircraft).
  • Correct entities listed as additional insured and include a waiver of subrogation on Hull coverage. 

3. Use a reputable provider. If you must use a non-owned aircraft, it is recommended that you use a reputable aircraft chartering service. An expert company would be able to help you determine your flight plan, accommodate your crew and attach the right equipment for filming.

4. Beware of changes to your provider. Sometimes a provider may subcontract in certain countries, and/or if there’s an unexpected need to find a replacement aircraft. Verify that replacement providers carry the same limits as your main provider, and include the charterer in the same capacity on their policy as the main provider would.

Coverage in Action

Non-owned aircraft claims are usually catastrophic. When they occur they tend to be very complex and involve many parties. For example, an artist chartered a private aircraft for transportation from a music video shoot and died when the aircraft crashed upon take off. Several wrongful death lawsuits were filed against the record label, the music video director, the production companies and the charter company. A non-owned aircraft policy would provide defense when a claim like this arises.

Download this PDF and contact a HUB Entertainment advisor today.