The FAA Aviation Insurance Program provides products that address the insurance needs of the U.S. domestic air transportation industry not adequately met by the commercial insurance market.

Topics on this page:

• Aviation Insurance Program Authority
• Non-Premium War Risk Insurance
• Temporary Premium War Risk Insurance
• Premium War Risk Insurance

Aviation Insurance Program Authority

The Secretary of Transportation under 49 U.S.C. § 44301, et seq., may provide insurance and reinsurance against loss or damage arising out of any risk from the operation of an American aircraft or foreign-flag aircraft.

Program authority for the provision of premium insurance expired on December 11, 2014.

Authority to provide temporary premium insurance under chapter 443 section 44302a has no expiration.

Authority to provide insurance under chapter 443 section 44305 at no premium expires on September 30, 2028.

Non-Premium War Risk Insurance

The Secretary of Transportation may provide insurance without premium, if the Secretary of Defense or the head of a Department, Agency, or instrumentality of the U.S. government agrees to indemnify the Secretary of Transportation against all losses covered by the insurance.

FAA insurance is available to Civilian Reserve Air Fleet (CRAF) program participants and other air operators performing U.S. government contracts. This insurance is currently available for operators who have contracts with the Department of Defense.

Insurance may be provided for up to one year. Presidential approval of the standing interagency indemnification agreement constitutes the necessary Presidential approval to issue non-premium insurance for additional periods up to one year. To apply for this insurance, contact the Aviation Insurance office by email at aviationinsurance@faa.gov or call us at 301-432-3195.

Temporary Premium War Risk Insurance

The Secretary may provide insurance or reinsurance for one coverage period not to exceed 90 days. The FAA may issue a temporary policy only if the insurance carrier of an air carrier has unilaterally terminated the air carrier’s war risk liability coverage pursuant to (a) notice under the policy, (b) an endorsement to the policy, or (c) an automatic termination provision in the policy or any endorsement. The temporary policy may cover hull, comprehensive, and third-party liability risks. 

The temporary insurance is subject to a premium based on a prorated amount equivalent to the premium that was in effect under the terminated insurance carrier policy. To apply for this insurance, contact the Aviation Insurance office by email at aviationinsurance@faa.gov or call us at 301-432-3195.

Premium War Risk Insurance

Note: The FAA is not currently accepting applications for premium war risk insurance. This requirement expired as of December 11, 2014.

After the terrorist events of September 11, 2001, the FAA issued premium third-party liability war risk insurance to U.S. air carriers. The Homeland Security Act of 2002, Public Law 112-7, and subsequent legislation required continued provision of this insurance and mandated the expansion of war risk insurance coverage to include hull loss and passenger liability.

Currently, FAA does not have statutory authorization to provide insurance products for a premium. Aviation war risk insurance products, however, are available in the commercial insurance markets.