Question

You are setting up a corporate flight department for an oil exploration company that will be operating its business jets globally to transport executives, employees, guests, and customers at the company's expense in support of its work. The company is purchasing 3 new business jets, using secured financing from Global Bank Corp. The company's initial areas of operation will focus on North Africa, the Middle East, and Indonesia.

Describe in detail the aircraft insurance you will purchase for the operation, explaining your reasoning clearly.

Answer 1

Industrial Aid insurance would be adequate to cover these operations.This type of insurance would cover everything covered by pleasure and business insurance (Pleasure and Business insurance covers: pleasure flying and personal flying incidental to or in direct connection with the insured's business, excluding any operation for which acharge is made) as well as the transportationof the businesses executives, employees, guests and customers but excludes any operationfor which a charge is made. Since this operation would not be renting or charging passengers, the Industrial Aid insurance would be adequate. As, the jets are purchased on security by taking a loan, this risk also needs to be covered, The policy to be taken to cover this risk is In flight insurance i.e., the insurance that covers the risk of damage to aircraft while it is in motion and also ground risk hull motion insurance, this covers any damage to the air craft that may occur to it while it is in motion on the ground i.e, while it is taking off and landing.

PLEASE LIKE THIS ANSWER, IT HELPS ME A LOT. THANK YOU!!!