• Section I - Coverages
• Section II - General Policy Exclusions

Part 3

• Section III - Who Is An Insured
• Section IV - Limits of Insurance
• Section V - Policy Conditions

Part 4

• Endorsements

ENDORSEMENTS

Aside from the optional previously mentioned (e.g., indoor coverage and Physical Damage), the remaining listed endorsements are all considered mandatory for all policies. The only exception is that some states include additional endorsements related to specific wordings, cancellation notices, etc.

While we provide a brief summary of the endorsements, it is advised to refer to the policy to fully understand what coverages and exclusions are added by endorsement.

Electronic Data Event Liability Exclusion - This endorsement excludes any injury that is solely mental injury, mental anguish, shock or fright caused by a delay in, cancellation or failure to provide air transportation or related services, or unauthorized access to or use of confidential, proprietary or personal information, or property damage to electronic data, arising out of a data event unless such event resulted from a crash or other emergency. The terms date event and electronic data are defined in the endorsement.

Additional Insured - Coverage is extended to any person or organization as respects the use of the scheduled aircraft and their liability because of the insured’s acts or omissions. Not covered are individuals engaged in the manufacture, maintenance, repair, or sale of aircraft, aircraft engines, components or accessories, or those individuals involved in the airport, flying school, flight service or other operations.

Amendment of Defined and Other Terms - This endorsement broadens the definition of newly acquired aircraft and extends the period of coverage for such newly acquired aircraft up to 60 days for additional premium.

Liability Coverage (Applicable to the War, Hi-jacking and Other Perils Exclusion) - This endorsement revises the war, hi-jacking and others perils exclusion, and provides a sublimit of $50,000,000 or the policy limit whichever is less, included within the limit of insurance and not an additional limit. Coverage is terminated automatically for war between any two of the United Kingdom, the United States, France, the Russian Federation, and the People’s Republic of China. Upon a hostile detonation of any weapon of war using atomic or nuclear fission or fusion, cancellation may take place with 48-hours notice.

Electronic Data Recognition Exclusion Limited Coverage Endorsement - This endorsement clarifies the application of the electronic data recognition exclusion in Section II - General Policy Exclusions. The Electronic Data Recognition Exclusion will not apply to any physical damage if covered by the policy or any sums the insured is legally obligated to pay because of injury or damage caused by an occurrence. Coverage is still excluded from subparagraphs (1) or (2) of the Electronic Data Recognition Exclusion unless the loss of use arises out of additional injury that is physical injury to or destruction of tangible property, or coverage for grounding or coverage in excess of scheduled underlying coverage.

Medical Expenses Coverage - Medical expenses incurred within one year of the date of injury are covered by this endorsement. The coverage does not apply to medical expenses incurred by or for any employee of the insured to the extent that such expenses are payable under any workers compensation, disability benefits, or similar law. The limits for each person covered under this endorsement are $500.

Liability for Sale of Unmanned Aircraft Systems, Parts or Services - Coverage is provided for bodily injury or property damage due to an occurrence arising out of a drone sold or relinquished from an exclusive written lease, or materials, parts, equipment, fuel or services for drones of others provided or performed by you on a not-for-profit basis, but only if the injury occurs after the property has been relinquished to others. This does not apply if the insured is in any of the businesses of manufacture, distribution or sale of drones.

Personal and Advertising Injury Liability - This endorsement provides coverage for personal and advertising injury liability. As such, the endorsement contains its own set of definitions, exclusions, limits and conditions applicable to that coverage.

Premises Coverage - This endorsement modifies premises liability coverage under the policy to pay for bodily injury or property damage in connection with the insured’s use of scheduled aircraft on a non-owned premises. Such bodily injury or property damage must be caused by an occurrence that occurs during the policy period, within the coverage territory, that arises out of the ownership, maintenance or use of a scheduled aircraft or the premises hazard. Definitions of auto, mobile equipment, premises, and premises hazard are added, with premises encompassing locations the insured uses in connection with the storage, maintenance, or use of scheduled aircraft. Certain exclusions are added as well.

Fire Legal Liability - Coverage A is extended to apply to property damage caused by fire to any premises rented or leased to the insured and used in connection with the storage, maintenance or operation of scheduled aircraft. 

Expanded Contractual Liability Endorsement - This endorsement revises the definition of insured contract to include certain required hold harmless agreements. These include those required by military or government authority as a requirement for use of an airport, heliport or related facility; a written contract for temporary storage or minor servicing of a schedule or non-owned aircraft, of part of any other written contract/agreement pertaining to a scheduled aircraft, non-owned aircraft, or airport premises under which the insured assumes liability of another to pay for injury or damage to a third person or organization, provided a copy of the contract is provided to the insurer withing thirty days of coming to your attention or that of your insurance department. An insured contract does not include any of the following types of contracts: for the benefit of anyone in, on or boarding an aircraft for the purpose of riding or flying therein; that pertains to the sale/purchase of an aircraft; that indemnifies any person or organization engaged in design or manufacture of aircraft or parts; or making major alterations or major repairs as those terms are defined by the Federal Aviation Regulations of the United States.

Non-owned Aircraft Liability -Unmanned Aircraft System - This endorsement provides $1,000,000 of coverage for bodily injury or property damage caused by an occurrence resulting from use of a drone shown in the schedule of this endorsement. The drone must not be owned in whole or part, or leased for more than thirty days by the insured.

Physical Damage Coverage (Applicable to the War, Hi-jacking and Other Perils Exclusion) - This endorsement amends the exclusion for War, Hi-jacking and Other Perils. It does not apply to any other part of the policy, it is an additional premium endorsement, and coverage is provided only with respect to the schedule contained within the endorsement, with specific definitions applicable to the coverage. Ground equipment and payloads as scheduled are provided: $300,000,000 as long as coverage is not otherwise excluded by sub-paragraph (2) of Section II General Exclusions, Exclusion 2(a), War, Hi-jacking and Other Perils Exclusion. Cancellation may be effected within seven days of the detonation of weapon of war using atomic or nuclear fission/fusion or similar reactions. This endorsement automatically terminates upon the outbreak of war between : the United Kingdom, the United States of America, France, the Russian Federation, the People’s Republic of China.

Terrorism Risk Insurance Act of 2002 Coverage (As Modified and Extended by: 

The Terrorism Risk Insurance Extension Act of 2005 and The Terrorism Risk 

Insurance Program Reauthorization Acts of 2007, 2015 and 2019) -The policy is modified to comply with provisions of the TRIA Act.

California Changes - This endorsement changes the definition of spouse, and revises cancellation and nonrenewal provisions.