Aviation insurance is a specialized type of insurance coverage designed to protect aircraft owners, operators, pilots, passengers, and aviation-related businesses against financial losses arising from risks associated with aviation activities.

This insurance has products such as; Hull insurance which covers damage to the aircraft itself, including the airframe, engines and other components, Liability insurance which protects against bodily injury or property damage claims brought by third parties due to aviation-related activities, Passenger liability insurance which provides coverage for bodily injury or death of passengers on board the insured aircraft, Cargo Insurance which protects against damage, loss, or theft of cargo being transported by the aircraft, Hangar keepers’ insurance which covers damage to third party property stored in the insured’s hanger.

Some exclusions include; losses resulting from war acts of war  or terrorism, deliberate or intentional damage caused by the insured party may be excluded from coverage, normal wear and tear, gradual deterioration, or mechanical breakdowns might not be covered, damages or losses arising from illegal activities or criminal acts by the insured.