Freight Air Carrier

A Simple Formula for the Best Aircraft Liability Insurance

(Finding the right coverage has never been easier)

Freight Air Carrier

As the owner of an airplane or a fleet of aircraft, you may offer the services of freight delivery as a business. To be a licensed air carrier, you must be sure that you are carrying the right aircraft liability insurance coverage in order to be compliant with the law. 

When building your aviation business insurance policy, you will want to be sure to work with an independent insurance agent who is familiar with the very specialized coverage you will need for your freight air carrier company.


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Charter Flight Industry Facts From IBISWorld

  • There are approximately 22,740 charter flight companies operating in the United States.
  • These businesses employ more than 60,000 people.
  • The charter flight industry is responsible for about $18 billion in revenue each year.

What You Should Know About Aviation Insurance for Freight Air Carriers

If you own an aircraft that you use for freight air delivery services, you will have to meet a few insurance requirements before you can legally take flight. 

In addition to having insurance coverage against damage to your arguably most expensive business asset, your plane, you will also need to carry aircraft liability insurance to cover potential damage to others' property by your plane and injuries to the public caused directly, or indirectly, by your aircraft.

Some insurance companies specialize in providing insurance packages that are created specifically for the aviation business. Because this is a very specialized type of insurance, it is best to work with an experienced insurance agent who is familiar with business aviation insurance and who can help you build an aircraft insurance portfolio that is suitable for your freight air carrier business.

Freight Air Carriers Have Specialized Insurance Coverage Needs

A well-built aircraft insurance policy will include coverage for your business property as well as sufficient aircraft liability insurance coverage. Companies that specialize in freight air carrier insurance are likely to offer the following coverage options:

  • Hangar and ground support equipment coverage: This provides coverage against damage to your airplane hangar as well as the tools, equipment and other business property you keep within.
  • Ground risk hull not in motion insurance: This provides coverage against damage to your airplane, such as from lightning, hail, vandalism or fire, while it is on the ground and not moving.
  • Ground risk hull in motion insurance: This provides coverage against damage to your plane that is sustained while the plane is in motion but on the ground, such as while it is preparing to take off or while it is taxiing toward the airplane hangar.
  • In-flight insurance: This provides coverage against damage to your airplane that occurs while your plane is in the air, from the moment of take-off until the moment the wheels touch down at landing.
  • Public liability insurance: This is a type of aircraft liability insurance coverage designed to protect your business if your airplane causes damage or injuries to others, such as if your plane hits a structure or damages crops.
  • Freight insurance: You can offer to provide insurance for the cargo that you are carrying on your plane by charging your customer an additional fee to cover your costs, or you may require your customers to provide their own insurance coverage while their property is in transit. You are not likely to be held responsible for loss or damage during shipment for things that are out of your control.
  • Umbrella insurance: The amount of aircraft liability insurance coverage provided by your insurance company may not be sufficient to fully protect your business in the event of a tragic accident. An umbrella insurance policy provides you with additional liability insurance at an affordable rate.

Be sure to discuss these and other insurance options with your independent insurance agent to ensure that your various exposures are properly covered.

How Much Does Freight Air Carrier Insurance Cost?

Insurance rates for your freight air carrier business will be calculated by taking a number of different factors into consideration. Some things that can significantly affect your rates include the following:

  • How experienced your pilots are: If your pilots have many years of flying experience and a proven record of competence, your rates will be lower than if you employ a number of novice pilots.
  • The type of plane (or planes) you are insuring: There are a number of different types of aircraft – from seaplanes to twin-engine piston aircraft to jets. Your plane’s value and its reliability and safety ratings will affect your insurance rates.
  • The amount of coverage you purchase: As with any insurance policy, the greater your aircraft liability and property limits are, the higher your premiums will be.
  • The amount of your deductible: Policies with higher deductibles come with lower rates.
  • The insurance company you choose: Rates can vary significantly from one insurance provider to another. Allow an independent agent to help you compare policies and rates from different providers so that you can make an informed decision.

Save on Business Insurance

Our independent agents shop around to find you the best coverage.

Find Help Building Your Freight Air Carrier Insurance Policy Package

Insuring your freight air carrier business can be a complex undertaking. For help, you can turn to an agent who is familiar with aviation business insurance. 

These agents can work with you to help you understand your different coverage options and can also shop around for competitively priced aircraft insurance policies that meet your coverage needs. 

Find an independent agent near you to learn more about building an appropriate freight air insurance portfolio.

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