Non-Owned and Hired Aircraft Liability
Coverage for liability arising from the use of aircraft the insured does not own, including chartered, rented, or borrowed aircraft.
What It Is
Non-Owned and Hired Aircraft Liability coverage protects businesses against liability claims arising from the use of aircraft they do not own. This includes chartered aircraft, rented aircraft, and aircraft owned by employees used for business purposes.
Standard CGL policies contain an aircraft exclusion that eliminates coverage for any liability arising from aircraft ownership, maintenance, or use. This exclusion applies even when the insured does not own the aircraft — a chartered flight for a business meeting falls within the CGL exclusion.
Non-owned and hired aircraft liability is typically provided through an aviation insurance policy endorsement or a standalone aviation liability policy. It covers bodily injury and property damage liability arising from the insured's use of non-owned aircraft.
Why It Matters for Brokers
Many businesses charter aircraft for executive travel without realizing their CGL policy excludes aircraft-related liability. If a chartered aircraft is involved in an accident, the business passengers' families could sue the company that chartered the flight, and the CGL would not respond. Brokers should ask commercial clients about aircraft usage — including charter and air taxi services — as part of every coverage review. Non-owned aircraft liability is inexpensive and addresses a potentially catastrophic coverage gap.
Real-World Example
A construction company regularly charters helicopters to transport executives to remote project sites. During one flight, the helicopter makes a hard landing, injuring two executives and damaging equipment on the ground. The construction company's CGL policy excludes the claim under the aircraft exclusion. Their non-owned aircraft liability policy covers the $800,000 in injury claims and $50,000 in property damage.
Common Mistakes
- 1Not asking commercial clients about chartered or rented aircraft usage, leaving the CGL aircraft exclusion gap unaddressed.
- 2Assuming the CGL policy covers passengers on chartered flights when the aircraft exclusion applies broadly to all aircraft-related liability.
- 3Not including non-owned aircraft liability for companies whose employees occasionally use personal aircraft for business travel.
How brokerageaudit.com Handles This
Policy Checker identifies the CGL aircraft exclusion and prompts brokers to evaluate non-owned and hired aircraft liability for accounts where executive air travel is common.