How should insurance and liability be assessed?

Let the buyer’s aviation insurance adviser and counsel establish the requirements; do not use an arbitrary universal limit. NBAA’s brokering guidance discusses operator insurance, additional-insured status and supplemental non-owned aircraft coverage, and recommends qualified advice on suitable coverage. (nbaa.org)

For criterion 8, request a review of:

• The insured entity, relevant aircraft, coverage period and geographic scope.
• Applicable limits, exclusions and any sublimits relevant to the mission.
• Required additional-insured protection and the supporting endorsement or policy wording.
• Broker coverage separately from operator coverage.
• Indemnities, liability limitations and the relationship between those obligations and insurance.
• The process for checking substitute aircraft and operators.

NBAA’s non-owned aircraft liability material specifically recommends obtaining both a certificate of insurance and the related endorsement when evidencing additional-insured protection. A certificate alone should not end the buyer’s review. (nbaa.org)