Which type of liability coverage protects innocent third parties when an aircraft is involved in an accident?

The type of liability coverage that protects innocent third parties when an aircraft is involved in an accident is Property Damage Liability. This coverage specifically addresses situations where the operation of an aircraft leads to damages to the property of others. For example, if an aircraft crashes into a building, the Property Damage Liability coverage would help cover the costs associated with the damage to the structure and any other property involved.

This type of coverage is essential because it ensures that victims who suffer loss due to accidents caused by an aircraft are financially compensated, thus protecting the interests of innocent third parties who would otherwise bear the financial burden of such incidents.

Other types of coverage mentioned serve different purposes. Hangarkeepers Liability pertains to the responsibility of pilots and aircraft operators for damage to aircraft stored in a hangar. Bodily Injury Liability focuses on injuries suffered by individuals, which may or may not involve property damage. Admitted Aircraft Liability refers to a specialized form of insurance for aircraft but does not specifically denote coverage for third-party property damage in an accident scenario, making Property Damage Liability the most fitting choice for this question.