Have you been asked for an ACORD 20 Certificate of Aviation Liability Insurance? A Certificate of Insurance form is a document that provides information about insurance policies to third parties - but is not an insurance policy.
ACORD 20 Certificate of Aviation Liability Insurance
If you or your business has an aircraft, like an airplane or helicopter, you'll need aviation liability insurance. You can't always predict just when you will need to present proof that you are adequately insured for the liability for your aircraft.
Aviation liability insurance covers you if your plane damages another plane or any property. Because damage by aircraft is usually pretty significant, you need to carry this insurance to show that you can afford it if something were to go wrong. The ACORD 20 Certificate of Aviation Liability Insurance is proof that you do.
The coverage which is third party liability - covers aircraft owners for damages that their aircraft causes third party property; homes, vehicles, crops, airports and other aircraft in a collision. It doesn't offer coverage for damages to businesses' aircraft itself or for passenger's injuries on the insured aircraft.
ACORD 20 is required to show proof that your aircraft has liability insurance. This form can be either filled out by you or your insurance company for third parties to know that you have liability insurance. It asks for the date of the certificate, the agency, contact name, phone number, address, and email address of the person who owns the aircraft.
Then, the form has a spot for the insurance company's contact information as well. It later on goes into depth on what the insurance policy holds. The percentages of what each insurance policy is responsible for in a disaster is listed on this form. There are multiple places for different insurance companies because many aircraft have multiple policies to cover more than just liability.
Who Needs It
The ACORD 20 Certificate of Aviation Liability Insurance form is required of anyone who owns an aircraft. Whether it be a private jet, helicopter, or a full airplane, this form is required to show proof of aviation liability insurance in the case that something happens to another aircraft or a piece of property. Just like car insurance is required for everyone with a vehicle, the same remains true here. It is also required for businesses who have aircraft.
The form should be carried with the aircraft at all times. In the event of a crash or damage, this certificate is to be shown to third parties to prove that the insurance policy is held. However, it does not guarantee that the coverage is still accurate. Insurance companies need to endorse the certificate to prove that the liability insurance is being held through them. The ACORD 20 Certificate of Aviation Liability Insurance is used in most casualty situations, but not all.
When Not to Use
Because there are a lot of different types of aviation insurance, it can be confusing when to use this form and when to use another form. Most casualty situations are going to require this form, but there are a few that require other aviation insurance forms. For instance, this form should not be used to waive rights in a crash. It should also not be used to provide any insurance information to an owner of a leased motor vehicle about liability or physical damage concerning coverage to the vehicle.
More On Certs
ACORD 20 Certificate of Aviation Liability Insurance - The Bottom Line
We hope this article on ACORD 20 Certificate of Aviation Liability Insurance has been informative. This form is not to be used to quote any part of an insurance contract, and it can not be attached as any endorsement to other companies. Neither should it be used to quote any part of the policy unless it has been amended. Although ACORD 20 can provide proof of liability insurance to interested third parties, it only provides proof that the policy was opened on the day that is listed on the form.
Find other ACORD forms here - ACORD 20 Certificate of Aviation Liability Insurance, ACORD 21 Certificate of Aircraft Insurance, ACORD 22 Intermodal Interchange Certificate of Insurance, ACORD 23 Vehicle or Equipment Certificate of Insurance, ACORD 24 Certificate of Property Insurance, ACORD 25 Certificate of Liability Insurance, ACORD 27 Evidence of Personal Property Insurance, ACORD 28 Evidence of Commercial Property Insurance, ACORD 125 Commercial Insurance Application, ACORD 126 Commercial General Liability Section, ACORD 130 Workers Compensation Application, ACORD 140 Property Section