Transport operators share a common insurance structure: one cover for the vehicle itself (the hull) and another for liability to passengers, cargo owners and third parties. Each mode, however, has its own legal framework, markets and terminology. This guide outlines the basics for aviation, marine and rail.

Aviation insurance

An aviation program usually combines:

  • Hull all risks — physical damage to the aircraft on the ground and in flight, with separate cover for war and allied perils;
  • Passenger liability — death, injury and baggage claims by passengers;
  • Third-party liability — damage and injury to people and property outside the aircraft;
  • Airport, hangar and products liability for airports, maintenance providers and manufacturers.

In the US, air carriers must meet federal minimums under 14 CFR 205.5: third-party coverage of $300,000 for any one person and $20,000,000 per aircraft per occurrence (or $2,000,000 for aircraft with 60 or fewer seats or up to 18,000 pounds maximum payload), and passenger coverage of $300,000 per passenger, multiplied by 75% of installed passenger seats per occurrence. A combined single limit may be used instead.

On international flights the Montreal Convention applies. From December 28, 2024, the revised limits are 151,880 SDR for passenger death or injury (the tier of strict carrier liability), 6,303 SDR for delay, 1,519 SDR for baggage and 26 SDR per kilogram for cargo, according to Clyde & Co's summary of the ICAO revision (2024). Private and corporate aircraft owners face fewer federal rules, but lenders, airports and states may set their own requirements.

Marine insurance

The Insurance Information Institute (Triple-I) describes hull and machinery insurance as covering damage to a vessel's hull, machinery and equipment caused by collisions and other ocean perils, and protection and indemnity (P&I) as liability cover often offered alongside hull insurance. P&I typically responds to crew injury, passenger claims, collision liability not covered by hull, pollution, wreck removal and damage to cargo carried.

Most ocean-going shipowners buy P&I from mutual clubs. According to the International Group of P&I Clubs, its twelve member clubs provide marine liability cover for approximately 87% of the world's ocean-going tonnage. Each club retains claims up to US$10 million; larger claims are shared among the clubs under a pooling agreement backed by a reinsurance program. Owners of yachts, tugs, barges and fishing vessels often buy fixed-premium hull and P&I policies instead. Cargo owners buy their own cover; see our cargo insurance guide.

Rail insurance

Railroads and rail operators insure rolling stock, track and facilities under property programs and buy large liability towers for passenger, employee, crossing-accident and hazardous-materials exposures. For passenger rail in the US, federal law at 49 U.S.C. 28103 caps the aggregate allowable awards to all rail passengers, against all defendants, at $200,000,000 per accident, including punitive damages, with periodic inflation adjustments; the cap applies to claims against Amtrak, commuter authorities, rail carriers and certain other parties. Freight railroads, short lines, rail-car owners and shippers that lease cars each need cover matched to their contracts, which frequently require the shipper or car owner to insure specific risks.

What drives price in transport insurance

  • type, age, value and use of the aircraft, vessel or rolling stock;
  • routes, trading areas and operating environment;
  • crew and pilot experience, training and safety management systems;
  • loss history and maintenance standards;
  • the liability limits required by law, lenders and contracts.

Much of this capacity is supported by international reinsurance; see transport reinsurance.

Claims tips

After an accident, notify insurers immediately, preserve flight data, voyage records or event recorder data, cooperate with official investigators and appoint surveyors or adjusters through the insurer. Statutory deadlines for claims and suits under international conventions can be short, so legal advice should come early.

See the aviation, marine and cargo categories. Policies are issued by licensed insurers and placed through licensed producers; request a quote or contact us.