COMMONLY USED AVIATION INSURANCE TERMS EXPLAINED Aircraft Liability Insurance - Protects the insured against claims for bodily injury and property damage caused by or arising out of the ownership, maintenance, or use of the aircraft. Aircraft Hull Insurance - Reimburses the insured for physical damage to the aircraft due to an accident or incident. Typically does not cover loss of use, diminished value, or wear and tear. Medical Payments - Voluntary payments to passengers for direct medical expenses as a result of an accident or incident. Paid without regard to legal liability. Purpose of Use - Defined in each policy, this spells out the approved uses of the aircraft under the policy. Some common uses are: Pleasure and Business - Non-commercial use of the aircraft for personal or business travel where no charge is made for such use. Industrial Aid - Non-commercial use of the aircraft for business travel where no charge is made for such use, but the aircraft is flown exclusively by professional pilots employed for that purpose. Commercial - Commercial uses include such operations as instruction, rental, charter, aerial photography, banner towing, and many more. OPW OR OPC - The open pilot warranty or open pilot clause sets forth the minimum requirements for a pilot to fly the aircraft under a policy without specific approval of the insurance company. Named Insured - The policy owner. The person or entity whose name appears on the first page of the policy and who has the authority to change or cancel the policy. Additional Insured - A person or entity with an interest to be protected but who is not a named insured. Combined Single Limit - A combined limit of liability applying to bodily injury and property damage. Usually stated as a limit per occurrence. Sub-limit - A single limit of liability for bodily injury and property damage per occurrence which is further limited to a smaller maximum amount payable to one person. Smooth Limit - A single limit as above with no internal per person limits. The entire limit is available to satisfy a claim by one individual.