Principles of Risk Management and Insurance, 13th Edition

Aircraft Insurance

Major commercial airlines own fleets of expensive jets, and the liability exposure is enormous. Occasionally, a commercial jet will crash accidentally because of mechanical or human error, killing hundreds of passengers and causing extensive property damage to surrounding buildings. Legal liability losses arising out of the crash of a fully loaded jet airliner can be catastrophic. In addition, many firms own aircraft used for company business. Company planes sometimes crash, resulting in death or bodily injury to the passengers, as well as death or injury to people on the ground and substantial property damage to surrounding buildings where the crash occurs. Finally, there are thousands of Americans who own or operate small ...