What are the two main types of coverage usually found in an aviation insurance policy?

In an aviation insurance policy, the two fundamental types of coverage typically included are hull coverage and liability coverage. Hull coverage protects the physical damage to the aircraft itself, encompassing losses due to accidents, impacts, collisions, theft, or other causes of loss to the aircraft. This is similar to property insurance for automobiles or buildings, as it pertains directly to the value of the aircraft.

Liability coverage, on the other hand, provides protection against claims for bodily injury or property damage that the insured aircraft may cause to third parties. This is crucial for aviation operations, as the potential for liability in accidents can be substantial given the nature of flying.

While some of the other options include relevant aviation insurance components, they do not encapsulate the primary categories of coverage as directly as hull and liability coverage do. For example, cargo liability is specific to transporting goods, and passenger bodily injury focuses on passengers but does not cover broader liability aspects. Thus, the emphasis on hull and liability coverage captures the dual priorities for aircraft operations—protecting both the aircraft itself and managing risks associated with third-party interactions.