Aircraft Spare Parts Insurance

Aircraft hull policies exclude aircraft spare parts. If a part, such as an engine, is removed from the aircraft to be repaired, and in order for the aircraft to be used, a “loaner” is attached to the aircraft, the part removed is not covered. Coverage for that spare part must be purchased separately from the aircraft hull policy. Insurance purchased covers aircraft engines, spare parts, and equipment that are on the ground, or that are being carried as cargo by air, land, or water conveyances. Coverage ends when the equipment is fitted to the aircraft. It excludes engine loss or damage while the part is running or being tested. It also excludes mechanical or electrical failure loss, or damage to detached property once it is refitted to the aircraft or property carried on the aircraft as a spare parts kit. Each loss that results from one event is adjusted separately.