Frequently Asked Questions

We have divided the FAQ’s into three sections. Each section contains the answers to questions a buyer should ask before making a purchase decision: 


Many years ago USAIG introduced the aviation insurance industry’s first plain language policy form, the 360⁰ All-Clear Aircraft Policy. Today this policy form continues to evolve and stand as the industry leader in providing the broadest coverage available in the aviation insurance industry. Our 360⁰ All-Clear Aircraft Policy spells out – in simple concise language – exactly what coverage is provided and gives more coverage and options and flexibility than ever before.

The basic All-Clear policy can provide you with Aircraft Physical Damage coverage, Liability coverage and Medical coverage.

It can also be expanded to provide additional coverages you may need, including Airport Premises Liability, Non-Owned Aircraft Liability and Voluntary Settlement coverage. Your independent insurance agent – in cooperation with USAIG – is your best source of guidance and will be happy to provide expert advice in helping you design an aviation insurance program that fits your needs and operations.

General Information

What are the advantages of dealing with independent agents or brokers?

First of all, the terms agent, broker and producer are used almost interchangeably in the insurance business. Regardless of the title it is important for you to choose one that understands aviation insurance you feel comfortable working with and who understands your needs. For our purpose here, in many cases we will refer to an independent insurance agent, broker or producer as your “agent.”

Secondly, the independent agent is a well-rounded insurance professional who will accurately evaluate your aviation insurance needs and recommend a protection program that meets your requirements. Many insurance agents specialize only in aviation and are an excellent resource in guiding your aviation insurance choices by providing expert knowledge in coverage conditions and exclusions. Your agent can guide you in finding just the right line of coverage with the best insurance company tailoring an insurance program specifically for your needs. Once the program is formulated, your agent will obtain not just one, but several quotes from reliable insurance markets in order to provide you with the best possible combination of coverage and cost.

Your independent agent works for you and is there to help you navigate any insurance situation you may encounter.

Whether purchasing a new aircraft, understanding your true exposures or helping you to obtain a fair and equitable settlement from your insurer in the event of a claim, they are there to help you.

Doesn’t it cost more to buy aviation insurance through an independent agent?

No. Although many aviation insurance buyers feel they can reduce their insurance costs by dealing direct and thereby eliminating the independent agent’s commission, they fail to consider that a direct writer must also mark-up basic premium charges to include overhead items such as salaries and benefits for their sales staff, office space, etc.

In the end, only you can determine who has the most to offer –We think you owe it to yourself to make that comparison.


In 1928, our pilot founders developed a business structure that has withstood the test of time. Today, over nine decades later, their structure survives intact, still delivering unparalleled financial strength and stability, generating the capacity needed to properly insure any size aviation or aerospace exposure.

USAIG, the public face of our business, is neither a single insurance company nor a corporation. It is a group, or pool, of individual insurance company members that collectively functions as a worldwide insurance market for all types of aviation and aerospace accounts.

This organizational structure allows our highly experienced, expert staff to provide the most comprehensive array of underwriting, claims handling and value-added services in the aviation insurance industry. We employ consistently sound underwriting practices and procedures, resulting in a book of business whose composition enhances the long-term stability of each member company, while simultaneously providing policyholders with the best aviation insurance coverages and value.

The business flight plan filed all those years ago continues to keep us directly on course today.

When and where am I covered?

You are covered for claims that occur from the time and date your policy begins until the time and date it ends.

You are covered within the United States and its territories and possessions, Canada, Mexico, the Bahamas and the islands of the West Indies, and while enroute between these places.

Can my coverage be changed?

Yes. You can change your coverage by having us add an endorsement to your policy.

Who can operate my aircraft?

Any pilot who possesses the qualifications listed in your policy or is specifically named in your policy.

Does my policy contain an exclusion regarding violations of a FAR?


Will I void my coverage if I sign an agreement with a government body to use an airport?

A signed contract with a government body to use an airport does not void coverage.

However, if you are asked to sign any other agreement you should consult your attorney, your agent and your underwriter before you sign it.

Can I charge people for using my aircraft?

No, but you may be reimbursed for operating expenses.

What happens if I have a mishap?

If a mishap takes place, you should notify your independent agent or broker and the insurance company, in writing, as soon as reasonably possible. Include the time and place of the occurrence and the names and addresses of any injured people and witnesses. This notification will put the claim handling process in motion.

Aircraft Physical Damage Coverage


Aircraft value

Aviation insurance policies are mostly written on an agreed value basis. You should discuss your aircraft’s value with your agent. In the case of damage to the aircraft, insuring it for too high a value or too low a value can result in unintended consequences.

If my aircraft is a total loss, what will I be paid?

You will be paid the entire amount for which you insured the aircraft, less any deductible that applies.

If my aircraft is a total loss, will I get back any premium?

Yes, any Aircraft Physical Damage premium we have not earned will be returned to you. For example: If you have a one-year policy and suffer a total loss on its 200th day, we will return 165 days of your Aircraft Physical Damage premium dollars.

What is included as part of my aircraft?

Your aircraft includes any operating, navigating or radio equipment that’s usually attached to the aircraft. Parts of your aircraft that are temporarily removed are also included even if replaced by similar parts. Any tools and repair equipment standard for your type of aircraft are also included. In addition, we will cover personal property, carried in your aircraft, which is used in the operation of your aircraft.

If my damaged aircraft must be moved to a repair site, how much will you pay for transporting it?

We will pay the cost of transporting, by the least expensive means, damaged parts or the aircraft from the site of the loss to the most practical place where repairs can be made; and, the aircraft back to the place of the loss, or your home airport, whichever is closer. However, the most we will pay for all repair costs, which include transportation costs, is the amount for which you insured the aircraft.

Do I have to buy more insurance after my damaged aircraft is repaired?

No. Your aircraft’s value is reduced by the amount of damage. Then as repairs progress, your aircraft’s value increases. Your policy automatically reinstates this value through each stage of repair. Once all repairs are completed, the aircraft is again covered for the original amount of insurance you purchased.

Are policies subject to a deductible for Aircraft Physical Damage claims?

Yes. However, in most cases today deductibles are Nil. A significant deductible may reduce the cost of your insurance. Discuss the options with your agent.

Does a deductible apply to all losses?

No. Any loss caused by fire, explosion, lightning, robbery, vandalism or theft, (of the entire aircraft or any of its parts) is not subject to a deductible.

Also, if your aircraft is damaged or destroyed by another aircraft which you do not own but which USAIG insures, no deductible will apply.

If I buy a new aircraft, will it automatically be covered?

Yes, your new aircraft will be covered for whatever amount you paid for it. All you need do is notify us within 30 days after you get it. However, we do recommend that you notify your independent agent or broker to arrange for coverage in advance as evidence of insurance may be required when closing on the purchase.

If you buy a new aircraft and keep your old aircraft, both are covered … the new aircraft for its purchase price and the old one for the amount for which it is insured.

Is my aircraft covered if it’s not hangared?


Liability Coverage


What is meant by the term Single Limit Liability?

Single Limit Liability Coverage, also called Combined Liability Coverage, means you are protected – up to the dollar amount specified in your policy – against bodily injury and property damage claims which result from an occurrence.

For example: If you purchase $1 million of Single Limit Liability Coverage and the combined dollar amount of all the bodily injury and property damage claims against you is – let’s say – $975,000, you are completely protected.

What is a Sublimit within your Liability Coverage?

A Sublimit is an internal restriction in the amount of coverage for individual bodily injury or property damage suits even though the single limit coverage still applies. This bodily injury sublimit may be for bodily injury to passengers on board your aircraft or to any person whether on board your aircraft or not. For example: Let’s say you purchase $1 million of Single Limit Liability coverage with a sublimit of $100,000 per person and a $50,000 sublimit for property damage.

You are still covered for $1 million against the combined dollar amount of all the bodily injury and property damage lawsuits against you. However, you have only $100,000 of coverage for any single bodily injury claim and $50,000 for any single property damage claim.

What does liability insurance protect me against?

The broadest form of liability coverage available in our 360⁰ All-Clear Aircraft Policy is Combined Coverage for Bodily Injury and Property Damage.

If you have this coverage, we’ll protect you in the event you are sued for bodily injury, mental anguish and damage to someone else’s property which result from the ownership, maintenance or use of your aircraft.

Besides you, certain other people and organizations are also covered under “Your Liability Coverage,” they include anyone who is using or riding in your aircraft with your permission; or any person or organization that is legally responsible for the aircraft.

Who’s not covered while operating or riding in my aircraft? Why not?

Although your All-Clear Policy provides you with extremely broad liability coverage, people and organizations engaged in commercial aviation will not be protected when they are operating or riding in your aircraft for their business purposes.

For example: An FBO employee who is ferrying your aircraft to his shop for maintenance wouldn’t be covered because he is conducting business for his company.

This same principle also applies to people or organizations that manufacture or sell aircraft, aircraft engines or accessories; or operate aircraft rental services, flying schools or conduct other commercial aviation operations.

These same people and organizations are protected by your policy if they are operating or riding in your aircraft for reasons unrelated to their business activities.

Does my policy exclude suits by members of my family?


Are my passengers’ baggage and personal effects covered?

Yes, $1000 per passenger in any one occurrence is the normal limit. If you need a higher limit talk to your broker.

What if I damage a hangar owned by an FBO?

We will also pay up to $10,000 during the policy period for damage to hangars and their contents you don’t own.

Suppose my aircraft is being serviced. Am I covered while using a Substitute Aircraft?

Yes. If you are temporarily using another aircraft because your own is damaged or needs servicing or repair, we’ll continue to provide you with the same liability coverage shown in your policy.

What if I use another aircraft, that is not a Substitute Aircraft, instead of my own plane?

You may elect to purchase Non-Owned Aircraft Liability coverage which protects you from legal obligations that result from the operation of an aircraft you do not own.

What if I damage someone else’s aircraft while I am using it?

If you expect to use aircraft owned by others, you may need to add Non-Owned Aircraft Liability for Aircraft Physical Damage coverage to your policy. In many cases this will be included as part of the package of coverage requested by your independent agent.

Are legal expenses also included?

Yes, and these expenses are covered in addition to the limits of your liability coverage, we will pay all costs of your defense, including investigation and court costs.

We will also defend any liability suit brought against you, to which this insurance applies even if the suit is groundless.

In Summary

When you bind a policy with USAIG through your licensed independent agent, you can be assured that we’ll have you covered, whether you operate a single aircraft or manage a fleet of commercial airliners. In addition to offering customized coverage that will fit your specific needs, we provide incentives to encourage formal recurrent training – because we know that professional training for all pilots is the best insurance of all. When you work with us you’re dealing with people who understand first-hand, your concerns and challenges. Many of us are pilots and/or aircraft mechanics who operate our own general aviation aircraft. Give us a call – you’ll find that we speak your language.