Aircraft Insurance: What is a Combined Single Limit?
Aircraft owners / operators are required to have at least a minimum level of insurance for up to four different types of liability risk. Third party and passenger liability risks apply to most aircraft, while baggage and cargo liability risks can also apply to those operated commercially.
Rather than arranging separate amounts of cover for each type of risk, the Combined Single Limit (CSL) is a single value intended to encompass them all. As well as being simpler to arrange, the CSL provides more flexibility in paying claims for liability, especially if passengers are injured, but little damage is done to third party property on the ground. The exception to this is cover for liability for loss or damage to cargo carried commercially which is limited to the minimum level required by EU regulation.
We use the information you supply (e.g. aircraft max. take off weight) to estimate your minimum legal CSL requirement. The regulatory authority for your aircraft may be able to confirm the minimum insurance requirements that apply.
IMPORTANT – You should consider arranging more than just the legal minimum liability cover because if you are responsible for an accident which results in damages that are greater than the cover you hold, you will be liable to pay the difference.
For example, imagine an owner who arranged a CSL of €3.5 million as this was the legal minimum required for their aircraft. If they are subsequently responsible for an accident in which the courts award damages of €4.5 million, the policy will pay out the CSL of €3.5 million but the owner would still be liable to pay the uninsured €1 million, possibly requiring the sale of other property to meet their liability.