Aviation insurance

The convention was an agreement to establish terms, conditions, and limitations of liability for carriage by air; this was the first recognition of the airline industry as we know it today.

[citation needed] Most airlines arrange "fleet policies" to cover all aircraft they own or operate.

After an accident an insurance company will compensate victims for their losses, but if a settlement cannot be reached then the case is usually taken to court to decide liability and the amount of damages.

Public liability insurance is mandatory in most countries and is usually purchased in specified total amounts per incident, such as $1,000,000 or $5,000,000.

This type of coverage provides more flexibility in paying claims for liability, especially if passengers are injured, but little damage is done to third party property on the ground.

Most hull insurance includes a deductible to discourage small or nuisance claims.

Normally, coverage ceases at the start of the take-off roll and is in force only once the aircraft has completed its subsequent landing.

[6] In-flight coverage protects an insured aircraft against damage during all phases of flight and ground operation, including while parked or stored.