Are Legal Defense Costs Covered In My Aviation Insurance Policy?
What does my aviation insurance policy actually cover? What about legal defense costs, are they covered?
These are excellent questions that help one understand the costs associated with their aviation insurance policy.
Part of all insurance policies is what is known as liability coverage. In everyday terms, liability coverage is the coverage provided that can protect you from claims of personal injury, property damage, and defense costs. The liability coverage is designed to pay on behalf of the insured those sums that he becomes legally obligated to pay.
Often times policy owners overlook defense costs. That is until an accident happens or claim is made where the courts subsequently get involved. With proper liability coverage, your policy should protect your interests whether or not you are found liable.
As we are all aware ambulance-chasing lawyers seem to lurk around every corner just waiting on someone to have a bad day, or to at least convince them the day is bad. A simple allegation and a charge filed with a court can trigger the need for defense.
Legal defense is never cheap. Somehow the Justice System is incredibly efficient at sucking the dollars out of our pockets while leaving us with a sense of helplessness. This is concerning to most caught in such a scenario as legal fees can and often do exceed the judgment itself.
So is the defense cost included in your insurance policy liability limits, or is it paid in addition to the limits? Relax, the defense costs feature more than likely falls outside the liability limit as is most often provided as an additional feature of the insurance policy. On occasion, there are exceptions, which do warrant a closer look at the policy to determine if such is really covered and to what degree.
As with all policies, it is good for the insured to review and understand what their policy limitations are. For example, once the insurance company has exhausted the liability limit in settlement payment, all defense then ceases.
To speak with someone who can help with insurance coverage for your airplane, helicopter, commercial drone, or other aviation asset feel free to contact us. Our qualified agents can help you shop the best rate, while at the same time, making sure you get the best coverage possible for your insurance needs.