The following definitions describe common aviation insurance terms.
Combined Single Limit (CSL)
Also known as a smooth limit, establishes one maximum liability amount for all covered claims resulting from a single accident. The limit may apply across bodily injury, passenger injury, and property damage claims without separate category limits.
Deductible Reimbursement
Provides payment for damage to an aircraft up to the lesser of the purchased coverage amount or the deductible specified in the aircraft owner insurance policy.
Unlike physical damage coverage, deductible reimbursement does not depend on a determination of fault.
Liability Coverage
Provides protection against claims for bodily injury or property damage caused to third parties, subject to the terms, conditions, and limits of the policy.
Non-Owned Aircraft Insurance
Also known as renter insurance, provides coverage when operating an aircraft that is not owned by the pilot, such as an aircraft rented from a flight school.
Coverage may include liability for bodily injury and property damage. Optional physical damage coverage may also provide protection for damage to the non-owned aircraft.
Physical Damage Coverage
Provides coverage for physical damage to a non-owned aircraft being operated. Coverage may be selected in an amount sufficient to cover the deductible specified in the aircraft owner insurance policy or, for broader protection, up to the insured value of the aircraft.
Sublimits
Establish maximum payment amounts for specific categories of claims within an overall liability limit.
For example, a policy may provide $1,000,000 in total liability coverage with a $100,000 per-passenger sublimit. In this case, the maximum amount available for a single passenger claim is $100,000, even when the overall liability limit is higher.
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