Additional Insured |
A person or persons other than the original named insured, who are protected under the terms of a policy. |
Advertising Injury Liability |
Provides coverage for such offenses as oral or written publication of material that slanders or libels a person or organization or its products or services or infringes on the right to privacy. |
Aggregate Policy Limit |
The maximum amount an insurance company will pay under the terms of a policy during the term covered by that policy. |
Aircraft Liability Insurance |
This form of coverage protects the insured from claims for bodily injury or death by members of the public and passengers if included under the terms of the insurance. This kind of insurance is normally written with limits per injured person, and another limit per occurrence. Other policies may be issued with a combined single limit, or total aggregate amount with no limit per person, or for each passenger. Protection against loss from claims filed by any third party fo damage to property, including the use of that property, is a part of this coverage |
Aircraft Non-Ownership Liability |
Coverage that protects the named insured from liability arising out of the use of aircraft not owned by or regularly provided to the named insured. |
Airport Premises Liability |
Designed to protect the owner or operator of an airport against losses arising out of use of the airport. |
Air Taxi and Charer Operators |
Nonscheduled air carriers operating on-demand commercial service for passengers and cargo shippers. |
Blanket Insurance |
One amount of insurance covers all property located at multiple locations. |
Bodily Injury |
Injury to the body of a person including sickness, disease, or death. |
Breach of Warranty |
(Lienholders Interest) Provides physical damage (hull) coverage by endorsement for a lender in the event that the insured invalidates or breaches the contract and the company would otherwise not be obligated to pay. |
Business and Pleasure |
Any personal, pleasure, family, or business use of an aircraft excluding any operation for which a charge is made. |
Business Auto Policy |
An auto policy designed to protect a business firm against loss or damage to owned or lease automobiiles, trucks, and specialty vehicles, and for damages for bodily injury and property damage of others which an insured becomes legally oblicated to pay. |
Business Income Coverage |
Indemnifies a business for losses during the time the business is unable to operate while the property is being repaired or replaced. |
Cancellation , Pro Rata |
The cancellation of an insurance contract, usually at the request of the insurer, prior to its expiration. The insured normally receives a refund of that portion of the premium coinciding with the percentage of the unexpired term of the policy. |
Cancellation, Short-rate |
At the request of the insured, cancellation of a policy prior to its expiration will involve a return to the insured, of less than the proportion of the premium that would have been refunded under the pro rata procedure. |
Charter |
Commercial use of an aircraft for which a charge is made or compensation (consideration) in some form is received by the insured, while either carrying passengers and/or cargo, or performing some other service under a written or oral agreement (contract). |
Chemical Liability |
Liability incurred by aerial applicators as a result of chemical discharges from the aircraft for pest control or fertilization. |
Coinsurance Clause |
A provision that requires an insured to maintain insurance equal to some selected percentage of value, normally 80 or 90 percent of actual cash value or replacement value of the property. |
Collision |
The upset or collision with another object by an automobile. |
Commercial Use |
Use of an aircraft for which a charge is made while providing instruction, rental, charter, or other services. |
Completed Operations |
In products liability, used to describe aircraft repairs and servicing, including installation of parts and accessories. |
Consequential Loss |
A loss caused only indirectly by a risk against which insurance is in force. For example, losses to power company customers as a result of downed lines. |
Contractual Liability |
A contractual obligation to pay damages for which another is legally liable. |
Conventional Landing Gear |
The two main wheels are mounted forward of the center of gravity with the balancing wheel in the rear. The aircraft sits with a nose high attitude while on the ground. |
Declarations Page |
Statements that present information about the risk to be insured, including items such as policy period, amounts and types of coverage, and a description of the insured property. |
Deductible |
Amount of expense to be paid by the insured after a loss, and prior to or in conjunction with payment of any policy benefits. |
Degree of Risk |
The likelihood of an occurrence; the accuracy with which losses can be predicted. |
Earned Premium |
That portion of a premium for which the policy protection has already been given during the now-expired portion of the policy term. |
Employers’ Liability Insuring Agreement |
A part of the worker’s compensation policy which is designed to cover the liability of the employer to workers who can sue their employers under certain conditions such as gross negligence on the park of the employer. |
Fixed Base Operators |
Airport-based commercial operators who provide some or all of the following activities: line services, aircraft and engine maintenance, sale of parts and accessories, aircraft sales, charter and rental of aircraft, corporate flight services, and flight training. |
Flying Club |
An aircraft owned or operated by three ore more individuals. Flying clubs can be incorporated or nonincorporated organizations generally formed for the purpose of operating aircraft at a reasonable cost per capita. |
Fractional Ownership |
Several companies jointly purchase an aircraft to reduce costs. A management company normally provides the crew, maintenance, ground support, insurance, record keeping and overall operation of the aircraft. |
General Damages |
Include many intangible losses in addition to the loss of financial support suchh as loss of society, companionship, consortium, love, care, and protection. |
Grounding Coverage |
Written in conjunction with manufacturers’ product liability to protect the manufacturer in the event that aircraft are grounded by federal authorities. |
Guest |
A person who does not pay for transportation. |
Guest Statutes |
A law, in some states, prohibiting a guest riding in a friend’s vehicle or aircraft from suing that friend if there is an accident. However, the guest can sue if the driver or pilot has shown unusual (gross) negligence. |
Guest Voluntary Settlement |
Also known as admitted liability coverage. In the event of bodily injury to a passenger, the insurer offers a settlement on a definitely determined basis regardless of whether the insured is legally liable. A release must be obtained from the injured party prior to settlement. |
Hail Insurance |
Insurance against damage from hail. In aviation, this is included in all-risk hull insurance. |
Hangarkeepers’ In-flight |
Protects the insured hangarkeeper for loss or damage to non-owned aircraft while in-flight and in the hangarkeeper’s care, custody, or control. |
Hangarkeepers’ Liability |
A form of bailee insurance that covers the insured hangarkeepers’ liability for loss or damage to aircraft which are the property of others and in the insured’s custody for storage, repair, or safekeeping. |
Hazards |
A condition, operation, or activity that has the net effect of increasing the possibility of incurring a loss. |
Hold-harmless Agreement |
An agreement under whih the legal liability of one party for damages or injury is assumed by the other party to the agreement. Such hold-harmless agreements between pilots and passengers virtually never stand up in court. |
Hull Insurance |
Insurance covering the aircraft, including the engine, propeller, and all other systems and equipment permanently attached to the aircraft (though it may be removable for maintenance), including avionics. Hull insurance is usually issued with a deductible clause ranging from $50 to $250. Hull insurance may be written for aircraft on the ground, not in motion; for aircraft on the ground and in motion (meaning under its own power), or for aircraft in flight. When specified as all-risk coverage it covers the aircraft under all circumstances, regardless of the reason for damage or loss. |
Indemnity |
To protect and secure against damage or loss; to make good; to compensate for loss. |
Industrial Aid |
A term that applies to corporate-owned aircraft that are used for the transportation of executives, employees, customers, and guests, which are flown by professional pilots. |
Inflation Guard Endorsement |
Designed to automatically and continuously increase the limit of insurance for the coverage to which it applies on a quarterly basis. |
In Flight |
The time commencing with the actual takeoff run of the aircraft and continuing thereafter until it has completed its landing roll. |
Ingestion Deductible |
A deductible for jet aircraft which applies to damage done to a turbine engine due to the engine sucking up foreign objects. |
Inland Transit Policy |
Covers the insured for loss or damage to owned personal property while being transported by others. |
In Motion |
While the aircraft is moving under its own power or the momentum generated therefrom or while it is in flight and, if the aircraft is a rotorcraft, any time that the rotors are rotating. |
Insurable Interest |
In property insurance an insurable interest is any financial interest based on some legal right in the preservation of the property. An exposure to a financial loss must exist for there to be an insurable interest in the occurrence of some event. In life insurance, it is usually because the insured or a beneficiary has a financial interest in the continued existence of the insured life or the expectancy of loss in the ending of the insured life. It must be present in life insurance before the contract goes into effect. |