§ 5503 Commercial Air Operator Insurance

• •All commercial air operators must have at least one million dollars ($1,000,000) of liability insurance for personal injury, wrongful death, and property damage caused by their aircraft.
• •They must also have an additional one hundred thousand dollars ($100,000) of liability coverage for each passenger on the aircraft.
• •This rule started on July 1, 2018.

A small commercial airline operates flights with 20 passengers on board. During one of the flights, there is an accident causing injuries to passengers and damage to property.

The airline must have at least $1,000,000 in insurance to cover the injuries and property damage. Additionally, they need $100,000 of coverage for each of the 20 passengers, totaling $2,000,000 for passenger liability.