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Everything You Need To Know About Aviation Insurance In Perth

Everything You Need To Know About Aviation Insurance In Perth
Everything You Need To Know About Aviation Insurance In Perth

Is it important? What does it cover? When should you take it out? All your aviation insurance questions answered

There’s no better feeling than flying. The first time you take wing in your very own aircraft, you’ll experience the exhilaration, peace and power of being in the air.In their excitement to get airborne, many new pilots and plane owners overlook one critical step: securing aviation and aircraft insurance. Although aviation insurance is not mandatory outside of charter and passenger transport, it is still a must-have for aircraft owners. Every year, around 220 aircraft accidents occur in Australia, 10% of which lead to fatalities.Without the right aviation insurance, aircraft owners, pilots, and anyone working in the aviation industry is at risk of significant liability in case of even a minor accident.

Who needs aviation insurance?

There are several types of aviation and aircraft insurance cover. Importantly, aviation insurance is not limited to pilots or plane owners. You might need aviation insurance if you:

  • Own an aircraft
  • Operate a charter service or airline
  • Pilot commercial or recreational aircraft (even crop planes or gliders)
  • Operate a hangar
  • Handle baggage or ground services
  • Refuel aircraft
  • Fly drones commercially

This is because aviation and aircraft insurance doesn’t just cover the physical aircraft. It also insures passengers, cargo, hangars, and third parties.

What does aviation insurance cover?

There are many different aviation insurance cover types, depending on your role in the industry. Let’s break down the most common types so you have a better idea of your insurance requirements.

Type of aviation insurance cover

Who it’s for

What it potentially covers

Aircraft Aerial Application LiabilitySuitable for aerial agriculture pilots, this type of insurance protects against property damage and bodily injury claims relating to chemical drifts

  • Injury and property damage claims from chemical drift
  • Using the incorrect chemicals
  • Adjacent fields
  • Which chemicals are covered depends on your operation

Aircraft Non-ownership LiabilityInsurance for commercial pilots, charter businesses, test pilots, students and any other non-owners flying aircraft; this insurance type can be personal or commercial

  • Passenger injury claims
  • Injuries during test or instructional flights
  • Third-party property damage
  • Legal costs arising from an accident in a non-owned aircraft
  • Medical and recovery costs

Importantly, this does not include non-owned aircraft hull damageAircraft Hull and LiabilityInsurance for physical damage to your (and other) aircraft; this is generally the first insurance aircraft owners seek out

  • Physical damage to your aircraft during take-off and landing
  • Theft and vandalism
  • Third-party injury or death
  • Passenger and crew injury or death
  • Third-party property damage
  • Legal costs

Depending on your policy, hull insurance can also cover grounded aircraft damaged by weatherHangar Keepers LiabilityCoverage for damage or destruction of aircraft in your care, including in covered service facilities and parts stored for sale

  • Damage or loss to aircraft in your care
  • Parts and equipment belonging to others
  • Legal costs
  • Significant value decreases if you are found negligent
  • Loss of use claims

Remotely Piloted Aircraft (RPA)Insurance for RPA (drone) owners and pilots, providing injury and damage liability cover

  • Physical damage caused by drones
  • Injury claims arising from a drone accident
  • Cameras and sensors attached to the RPA
  • Ground equipment
  • Invasion of privacy claims
  • Loss arising from electronic malfunction or accessory failure

Some tailored RPA policies also cover ground crew and non-pilotsSpecialist Insurance CoverCover for refuellers, ground handlers and any other business operating in or around airports and runways

  • Third-party injury claims
  • Third-party property damage
  • Legal costs
  • Medical expenses

As you can see, aviation insurance in Perth is a specialised area. The best way to untangle the complexities of aviation and aircraft insurance and get an affordable quote is to contact Connect Business Insurance. Our experts will help you understand your specific insurance requirements, then tailor a policy to suit.

Are my passengers covered?

Provided you have the right insurance policy, any passengers, crew, cargo and equipment on your plane is insured. If anything happens, aviation insurance covers your liability against claims, plus the costs associated with the incident.Connect Business Insurance also offers combined single limit (CSI) insurance, bundling your public liability and passenger liability insurance into a single capped policy.Specific coverage depends on your policy. Aviation is a complicated industry, so it’s always best to speak with an insurance expert about policy inclusions and exclusions.

Do I need to take out multiple aircraft insurance policies?

Despite the complex nature of aviation insurance, getting the right policy is surprisingly simple. Here at Connect Business Insurance, we will create a tailored policy encompassing all the different riders (inclusions) you need.Our expertise means you are covered from top to tail. We can create a tailored policy to cover not just your aircraft and crew but also your business, public liability, equipment, income protection, worker’s compensation requirements and much more.

How much should I insure my aircraft for?

Aircraft, including drones, are insured based on an agreed value. Like any vehicle, the value changes over time depending on depreciation, equipment upgrades and other factors. Insuring your aircraft for the right amount is critical, as over-insuring or underinsuring can cause issues when a claim arises.


Insuring the aircraft for more than it’s truly worth can lead an insurer to opt for repairs instead of a payout. For commercial operators, this means staying grounded for a long time.


Failing to increase your insurance policy to reflect an aircraft’s actual value means it may be prematurely written off. That is, your plane is taken away for salvage, leaving you without enough funds to replace it.

All your insurance needs handled

Connect Business Insurance are Perth’s aviation and aircraft insurance experts. We offer comprehensive insurance services for aviation companies looking for the best affordable insurance in WA.Whether you need hangar keepers insurance or combined single-limit insurance for a large commercial aircraft, our insurance experts can help.Contact us today

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