Never presume that you're covered
During your flight training, you will probably rent an aircraft and hire a flight instructor to conduct that training. In the flurry of the excitement and concentration that goes along with learning to fly, it may not occur to you to think about whether you have, or even need, insurance protection for the rental of that aircraft. Or, if you thought about it, you may have presumed that you were covered by the insurance policy of the flight school that rented you the aircraft. This insurance issue is not new, yet it is still a subject that is not fully understood by some until it is too late.
The problem is this: When you rent an aircraft, you may be personally liable to pay for any and all damage that comes out of your renting of that aircraft, whether or not you actually caused the damage. That is, you may not be insured against claims for injuries to the flight instructor on board the aircraft with you, to other passengers whom you may have invited onto the aircraft, or to any people on the ground who might have been hurt by the aircraft. And, chances are that you are not insured against paying for damage to the aircraft itself if it is damaged while you are using it. So, if some injury or damage happens, you may have to pay for it out of your own pocket.
As an aircraft renter you want to find out if you are covered under someone else's policy, and if not, whether you can obtain insurance coverage for yourself.
The flight school probably will have insurance that covers damage to the aircraft, and the owner of the aircraft probably has insurance that covers damage to the aircraft and liability for renting the aircraft. But the policy may not protect you - the person piloting the aircraft. You could try to find out to what extent you are covered by the flight school's insurance policy, if indeed you are. Sometimes, this is not an easy or practical course, even though some states have laws that require a flight school to disclose to you what insurance coverage is carried on the aircraft. The chances are, however, that neither the flight school nor owner's policies will cover you.
So, you may choose to investigate and purchase insurance that covers you as the pilot of a rented aircraft. Such a policy is known in the insurance industry as nonownership aircraft insurance, or insurance that is specifically designed for renter pilots (pilots who don't own the aircraft they're flying). Some of the aviation insurance companies offer this kind of insurance.
What do these kinds of insurance polices provide? Typically, they will include two types of coverage. One part of the policy is for hull coverage, which will pay for any physical damage to or destruction of the aircraft. This type of coverage is generally obtained at a more nominal charge. The other part of the policy is for liability coverage, which will pay for claims made by persons who were injured or whose property was damaged because of your use of the aircraft. This type of coverage is usually more expensive. When purchasing the policy, you normally will have a choice of hull and liability coverage, much like you do when purchasing collision and liability insurance for your automobile; higher liability limits will result in a higher insurance premium.
As a pilot renting an aircraft, you should be aware of the liability you may face if something should happen while you are using that aircraft, including potential liability for repairing or replacing the aircraft as well as potential liability for harm done to others from your use of the aircraft. It's smart to try to protect yourself against this potential for liability. One method of protection is to exercise your best judgment in preparing to fly and flying the aircraft so the chances of anything going wrong are reduced. Obtaining additional certificates and ratings will also improve your proficiency and increase your flight time, which adds to your ability to exercise prudent judgment. You may also want to protect yourself from potential liability, which can occur whether or not you are at fault, with insurance that specifically covers you.
Kathy Yodice is an attorney with Yodice Associates in Washington, D.C., which provides legal counsel to AOPA and administers AOPA's Legal Services Plan. She is an instrument-rated private pilot.
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