Aviation insurance primarily protects against which type of damage?

• A. Damage to the aircraft and unrelated personal injuries
• B. Property damage to third parties and injury to non-passengers
• C. Workers' compensation claims for pilots
• D. Damage caused to the airport itself

Answer: (B)

Aviation insurance is primarily designed to cover risks associated with the operation of aircraft. This includes a range of potential liabilities that can arise, particularly in relation to third parties. Hence, the focus on property damage to third parties and injury to non-passengers is pivotal to the purpose of aviation insurance.

When an aircraft is involved in an incident, the consequences can extend beyond the immediate damage to the aircraft itself. Aviation insurance provides coverage for damages that may occur to property owned by individuals or organizations who are not affiliated with the aircraft operator. Additionally, it addresses liabilities arising from injuries sustained by individuals who are not passengers on the aircraft, such as pedestrians, employees at the airport, or individuals on the ground who may be impacted by an aviation accident.

The other options refer to areas of insurance that do not align with aviation insurance’s primary focus. While damage to the aircraft itself and unrelated personal injuries may be covered, they are secondary to the critical aspect of liability for third-party injuries and property damage. Workers' compensation for pilots is typically handled under separate workers' compensation policies, and damage to the airport is not the primary focus of aviation insurance, which is more concerned with liabilities arising from aircraft operation rather than infrastructure.