Private Jet Insurance Explained- How Private Jet Insurance Works

Hull insurance covers physical damage to the aircraft itself. If the aircraft is damaged in a ground incident, a weather event, a collision, or is declared a total loss following an accident, the hull policy responds.

Most aviation hull policies are written on an agreed value basis. The aircraft's insured value is agreed between the owner and the insurer at the time the policy is bound. If the aircraft is declared a total loss, the agreed value is paid (less any deductible) without the post-loss negotiation over market value that characterizes most property insurance claims. 

This agreed value structure is important: it means the coverage payout is known in advance, but it also means the insured value must be kept current with market conditions. An aircraft insured at a value set three years ago may be significantly underinsured if market values have risen.

Hull coverage applies differently depending on whether the aircraft is in-flight or on the ground. In-flight coverage typically carries a different deductible than ground-only (moored) coverage. Most comprehensive policies cover both, but the deductibles and exclusions differ. Ground-only policies, which exclude in-flight hull coverage, exist at lower premiums for aircraft that are used infrequently or stored.

Liability coverage protects the aircraft owner or operator against financial claims from third parties. In the context of a charter flight, this means claims from passengers, bystanders, or parties whose property is damaged as a result of an aviation incident.

Liability coverage in aviation is written as a combined single limit, meaning the total available under the policy for all third-party claims arising from a single incident is a single number. A policy with a $50,000,000 combined single limit has that amount available to respond to all claims from a single event, regardless of how many parties are involved.

The minimum liability coverage required of a Part 135 charter operator is set by regulation and is lower than what most sophisticated charter clients would consider adequate. The legal minimum can be as low as $300,000 per passenger seat in some cases. Most reputable charter operators carry significantly higher limits: $50,000,000 to $100,000,000 or more in combined single limit liability is typical for larger aircraft at quality operators. 

High-net-worth charter clients and corporate travel programs should verify the specific liability limits in place on the operator's policy before flying, not assume that any coverage is sufficient coverage.

Smooth limits vs. passenger sublimits: Some liability policies contain a passenger sublimit, which caps the amount available per individual passenger regardless of the overall policy limit. A policy with a $50,000,000 combined single limit but a $1,000,000 per-passenger sublimit may respond very differently to a multi-passenger incident than a smooth limit policy with no per-passenger cap. Ask specifically whether the operator's policy contains passenger sublimits.

When you book a Part 135 charter flight, the operator's hull and liability policy is in force. You are a passenger in an operation that is insured. What the operator's policy may not cover:

• Your personal property and baggage on board
• Trip cancellation or interruption costs if the flight is cancelled for operational reasons
• Medical expenses beyond what the operator's liability coverage provides
• Your personal liability as a charterer if you cause damage to the aircraft

Corporate charterers, family offices, and high-net-worth individuals who charter frequently should discuss with their insurance advisers whether their existing personal liability umbrella, travel insurance, or non-owned aircraft liability policy provides adequate supplemental coverage beyond the operator's baseline policy.

Practical step:  Before any charter flight, request written confirmation of the operator's liability coverage limit. A reputable operator or broker provides this without hesitation. If you cannot obtain it, that is material information about the quality of the operator.

Private jet insurance is built from two primary components. Hull coverage protects the physical aircraft against loss or damage, written on an agreed value basis where the insured value is agreed at policy inception and paid in full (less deductible) on a total loss. Liability coverage protects against financial claims from passengers, bystanders, and property owners arising from an aviation incident, written as a combined single limit available for all claims from a single event. Part 135 charter operators are required to maintain hull and liability insurance as a condition of their operating certificate. The minimum liability limits required by regulation can be substantially lower than what high-net-worth charter clients or corporate programs should consider adequate: most reputable operators carry combined single limits of $50,000,000 or more.

An aircraft owner requires both hull and liability coverage at a minimum. Additional coverage components that are commonly part of a comprehensive private jet policy include:

• Non-owned aircraft liability: Covers the owner's liability exposure when flying in aircraft they do not own, relevant for owners who also fly charter or borrowed aircraft
• Passenger voluntary settlement: Provides a defined benefit to passengers regardless of fault determination, separate from the liability coverage that requires negligence to be established
• War and allied perils: Extends coverage to risks excluded from standard policies, including acts of terrorism, hijacking, and confiscation, relevant for international operations
• In-motion ground coverage: Ensures coverage when the aircraft is taxiing or being repositioned on the ground, where some policies have exclusions

The aviation insurance market in 2026 is characterized by disciplined underwriting. Carriers are selective about risk, pricing reflects the aircraft's use category (private Part 91 vs. Part 135 charter), and accurate declaration of how the aircraft is used is essential. Misclassifying use is one of the most common causes of claim denial in aviation insurance.

When booking a private jet charter, the Part 135 operator's insurance policy is in force and covers the operation. However, the operator's policy does not automatically cover personal baggage, trip cancellation, or the charterer's personal liability. Some operator policies contain passenger sublimits that cap the available coverage per individual passenger below the overall combined single limit, providing less protection in multi-casualty incidents than a smooth limit policy. Charter clients should request written confirmation of the operator's liability coverage limit and specifically ask whether the policy contains passenger sublimits before confirming any booking.

Hogani Jets coordinates each charter through licensed Part 135 operators.

Contact Hogani Jets at charter@hoganijets.com or +1-855-660-0573.