Umbrella Policy & Your Aircraft Insurance

by CJP Insurance

I don’t need to buy high limits of aircraft liability. I have a personal umbrella and it covers everything. Right? 

One of the most frequent discussions we have concerns aviation excess liability under an umbrella policy. The personal umbrella is probably the most misunderstood policy in the industry. One thing should be perfectly clear: there is no policy that covers everything.  Rarely does a personal umbrella policy cover aviation exposures. In most cases, aviation exposures are specifically excluded.

What about the commercial umbrella policy my company purchased? 

There, too, it is unusual to find a commercial umbrella that will extend protection to aviation exposures. They do exist, but when an exception is made and aviation is included, it is usually for the large insurance account that has a high level of negotiating power with the casualty underwriters.

As a rule, assume there is no coverage extension under your umbrella policy until you see it in print. Not to confuse the issue, you must then make sure the aviation policy, which is almost always written on an occurrence form of coverage, is compatible with the umbrella or excess liability policy.