For more on this part of the insurance industry:
Commercial airline insurance safeguards companies that operate aircraft for public transport—whether that’s carrying passengers, cargo, or both. This includes:
Insurance gives them financial protection by covering a wide range of incidents that could affect their aircraft, staff, or passengers. It is vital to the UK’s commercial airline industry, which has grown from early post-war air travel into a hub for global connections.
On 21 May 2024, a flight from London to Singapore hit severe turbulence over Myanmar. One person died, and dozens were injured.
The aircraft was also damaged and needed emergency repairs. Incidents like this show why commercial airline insurance is important, for covering costs and protecting lives.
Airlines are updating their fleets with newer, fuel-saving aircraft, which may change how insurers set premiums for mechanical issues. Many now lease planes instead of owning them, which shifts who is responsible for covering certain hazards.
As flights become more frequent, brokers need to rethink policy limits and overall exposure for pilot and crew cover. But there are rising concerns in the commercial airline insurance sector:
Longer parking times during quiet periods raise the chance of weather or ground damage. New AI tech in cockpits also makes it harder to know who’s at fault. Brokers should review how these threats affect hull and liability cover.
The cost of insurance for commercial airlines in the UK varies widely, influenced by various factors. While specific figures are not publicly disclosed, insurance expenses are a notable part of an airline's operational budget.
Many elements influence the cost of this insurance, such as:
Insurance is a key part of an airline’s overall operating expenses, alongside aircraft rentals, maintenance, and depreciation.
What insurance do airlines have?
Airlines hold several types of insurance options. Each policy is tailored to the airline’s size, operations, and risks. Main commercial airline insurance options include:
War risks are usually not included in standard hull and liability cover. But most airlines add this through separate policies, often required by lessors or regulators.
Yes, all commercial aircraft must be insured by law before they can fly. UK regulations require minimum cover for passengers, cargo, and third parties.
This cover is not automatic—it must be arranged and kept active by the airline or aircraft operator. Proof of valid commercial airline insurance is needed for aircraft registration and flight approval.
Yes, anyone operating an aircraft for public or commercial use must have insurance in the UK. It is a legal requirement under UK aviation law. But it’s also needed for financial safety and peace of mind.
This includes cover for passengers, cargo, and third parties, whether the aircraft is owned or leased. Commercial airline insurance secures against economic loss and is essential for regulatory approval.
Commercial airlines are among the safest ways to travel today. Modern aircraft are built with advanced systems and strict safety rules apply to every flight.
In the UK, safety is regulated by the Civil Aviation Authority and follows international standards. Commercial airline insurance supports this by covering rare but costly incidents when they do happen.
Insurers also consider safety records, training, and aircraft type when setting premiums. Better safety often leads to lower risks and stronger cover options.
