Aviation Insurance

How private aircraft owners can effectively protect their assets and legal interests

Until recently, questions about the right scope of aviation insurance mainly concerned large charter operators and fleet management companies. Today, as more private individuals purchase aircraft, helicopters, or gliders, the same challenges reach owners of single aircraft — often without the experience that legal departments of large carriers have built up over decades. The growing value of aircraft, a dense web of international regulations, and a far from negligible number of accidents and incidents mean that a well-structured policy is not an extra, but a precondition for flying safely.

Insurance can cover not only airplanes and helicopters, but also gliders, balloons, hang gliders, and — more recently — drones. In each case, it is worth remembering that the scope of coverage and the owner’s obligations vary depending on the type of aircraft and how it is used.

What an aircraft owner is actually risking

Aviation has a risk profile unlike most industries covered by standard insurance. This includes the risk of accidents and disasters, damage to the aircraft itself, liability towards passengers and third parties on the ground, as well as incidents arising from weather conditions, piloting errors, or third-party actions such as acts of unlawful interference. The scale of potential losses — both financial and personal — is one of the reasons why aviation insurance ranks among the most specialised products on the market.

What a policy actually covers

The mechanism works much like other types of insurance: the insurer assumes the financial risk associated with specific events in exchange for a premium. In practice, an aviation policy may cover, depending on the owner’s needs:

• Hull insurance (aerocasco) – covering damage to or loss of the aircraft itself;
• Third-party liability insurance for the aircraft user, towards persons other than passengers;
• Carrier’s liability insurance towards passengers and their baggage and personal belongings;
• Carrier’s liability insurance for the carriage of cargo;
• Personal accident insurance for crew members.

Importantly, for some of these covers, having insurance is not merely good practice but a legal requirement. Minimum insurance requirements for air carriers and aircraft operators in the European Union are set out in Regulation (EC) No 785/2004, which establishes, among other things, mandatory minimum sums insured for liability towards passengers, baggage, cargo, and third parties. The regulation refers to the carrier liability limits set by the 1999 Montreal Convention, which are periodically updated by ICAO to reflect inflation.

A separate and increasingly important topic is drones. Since 13 November 2025, Poland has required operator liability insurance for unmanned aircraft with a take-off mass between 250 g and 20 kg, regardless of whether they are used recreationally or commercially. This requirement stems from an amendment to the Aviation Law implementing EU Regulations 2019/947 and 2019/945, which define operational categories (open, specific, and certified) and the obligations attached to each. Flying without a valid policy can result in an administrative fine, and in the event of damage, full financial liability out of the owner’s own pocket.

Why the details matter so much

The wording of clauses and exclusions of liability can vary significantly between insurers, even for what looks like the same type of policy. For this reason, it is essential to tailor the scope of cover to how a specific aircraft is actually used — in particular, by precisely defining the territory in which the policy applies. Aircraft are frequently used for cross-border and sometimes transcontinental travel, so overlooking this detail can mean that, in the event of an incident abroad, the insurer refuses payment by citing the contract’s territorial limits.

When a dispute arises

Complex procedures, the international nature of aviation incidents, and the specific characteristics of air transport mean that disputes with insurers are not uncommon — and the stakes involved are often high. In such situations, the following typically prove decisive:

• correct interpretation of the insurance contract’s provisions,
• determining each party’s obligations under the applicable law and policy terms,
• negotiations with the insurer,
• preparation of documentation and technical-legal opinions,
• representation in pre-litigation and court proceedings.

Professional legal support at this stage genuinely increases the chances of obtaining full compensation and reduces the risk of the insurer refusing payment by citing alleged procedural breaches.

Summary

Aviation insurance plays a fundamental role in the safe functioning of modern aviation — including its fast-growing private segment. A properly chosen policy protects not only the owner’s assets, but also their legal interests in the event of accidents and third-party claims.

Support from a law firm at the stage of risk analysis, choosing the right scope of cover, and — should a dispute arise — pursuing claims, helps avoid mistakes that could otherwise lead to serious financial consequences.