Clear on Top

In this continuing series we are discussing some of the more common misconceptions of the often misunderstood aircraft insurance policy. We welcome any discussion regarding aviation insurance matters. Keep in mind, the only truly stupid question is the one that is never asked.

I am sure you have heard, “Anybody can sue anyone for anything.”  This is true in today’s legal environment. But, could my family sue me?  They certainly can.  The papers are reporting increased incidences of children suing one or both parents for some act of negligence or of husband / wife suits.

How does your aircraft insurance policy deal with family suits?  It may interest you to know that although some insurance policies treat family suits as any other liability suit, some provide coverage with greatly restricted limits.  Wording such as:

“The most we will pay for bodily injury to your spouse or the spouse of a permissive user is 25% of the limit for “each person” and “each passenger,” but not more than $25,000.”

“The most we will pay for bodily injury to your parent or child or the parent or child of a permissive user is 12.5% of the limit for “each person” and “each passenger,” but not more than $12,500.”

This restrictive wording is most important to aircraft owners who own their aircraft individually and insure their aircraft on pleasure and business policies.  Although not of importance to everyone, this subtle limitation is something of which you should be aware.