Part 91 vs. Part 135 Insurance: Chartering Your Private Aircraft
- 1 day ago
- 6 min read
Owning a private aircraft gives you flexibility, convenience, and control. But if you're thinking about chartering your aircraft to generate income, your insurance needs can change in a big way. Many owners don't realize that moving from private use to commercial operations may require different coverage and underwriting.
Understanding Part 91 vs. Part 135 insurance is one of the most important steps before offering charter services. At Wexford Insurance, we help aircraft owners understand how different types of aviation operations can affect their insurance needs so they can make informed decisions.
What Is the Difference Between Part 91 and Part 135?
The main difference between Part 91 and Part 135 is how the aircraft is operated.
Part 91 generally covers private, non-commercial aircraft operations.
Part 135 applies to commercial charter operations where passengers or cargo are transported for compensation or hire.
Because commercial flights typically involve more exposure to risk, insurance companies often evaluate these operations differently.
Before changing how your aircraft is used, always discuss your plans with a licensed aviation insurance agent.
Does Chartering Your Private Aircraft Change Your Insurance?
Yes. In most situations, chartering your aircraft changes your insurance needs.
Many private aircraft insurance policies are written with the expectation that the aircraft is operated only for approved private purposes. If the aircraft begins transporting passengers for compensation without the proper policy or endorsements, coverage issues may arise depending on the policy language and the facts of a claim.
This is why owners should never assume their existing private aircraft insurance automatically applies to charter operations.
Why Part 135 Operations Create Different Insurance Risks
Commercial charter operations usually introduce additional exposures that insurers consider during underwriting.
These may include:
More flight hours each year
More passengers
Flights to a wider variety of airports
Multiple approved pilots
Crew scheduling
Passenger liability exposure
Commercial business operations
Because of these factors, insurers often require additional information before offering coverage.
What Insurance May Be Needed for Part 135 Operations?
While every operation is different, a commercial charter insurance program may include several coverages.
Hull insurance may help cover physical damage to the aircraft after certain covered losses, subject to policy terms and conditions.
Coverage limits are typically based on the insured value of the aircraft.
Aircraft liability insurance may help protect against claims involving bodily injury or property damage arising from covered aircraft operations.
Commercial operators often need higher liability limits than private owners because they transport paying passengers.
Passenger Liability Coverage
Passenger liability coverage may help protect against claims involving injuries to passengers during covered operations.
Coverage requirements vary depending on the operator, aircraft, and insurer.
Crew Coverage
If your operation includes employed pilots or crew members, additional insurance may be appropriate depending on your business structure and applicable regulations.
Some charter businesses also need insurance that protects operations while the aircraft is on the ground.
Depending on your business, this could include:
Hangar liability
Premises liability
Business property coverage
Equipment coverage
A licensed insurance professional can help determine which policies fit your operation.
Can You Use a Part 91 Policy for Part 135 Flying?
Generally, no.
A policy written for private aircraft operations is usually designed around the risks associated with personal or business use under Part 91. If your aircraft begins operating as a commercial charter, your insurer will likely need to review the change before coverage is issued or updated.
The exact requirements depend on:
Aircraft type
Pilot experience
Charter operations
Passenger capacity
Geographic operating area
Insurance company underwriting guidelines
Never assume your existing policy allows commercial charter use without written confirmation.
How Insurers Evaluate Part 135 Charter Operations
When underwriting commercial aviation insurance, insurers review many factors.
These often include:
Aircraft Type
Larger, faster, or more complex aircraft generally require more detailed underwriting.
Pilot Qualifications
Insurance companies commonly review:
Total flight hours
Hours in aircraft make and model
Commercial certifications
Training history
Safety record
Experienced pilots with strong training histories may present lower underwriting risk.
Charter Experience
Operators with established charter procedures and operating history are often viewed differently than brand-new charter businesses.
Maintenance Programs
Proper aircraft maintenance helps reduce operational risks.
Insurers frequently review maintenance schedules and inspection records.
Geographic Operations
Where your aircraft flies also matters.
International operations, mountain airports, coastal weather, and high-traffic airports may all affect underwriting decisions.
Part 91 vs. Part 135 Insurance: The Short Answer
If you're asking whether insurance changes when you charter your private aircraft, the answer is yes.
A Part 91 insurance policy is generally intended for private, non-commercial operations. Once an aircraft is used to transport passengers or cargo for compensation under Part 135, different insurance requirements and underwriting standards typically apply.
Before beginning charter operations, speak with both your aviation attorney and a licensed insurance agent to make sure your aircraft is properly insured for its intended use.
Common Mistakes Aircraft Owners Make
Aircraft owners sometimes overlook important insurance details when considering charter operations.
Some common mistakes include:
Assuming personal aircraft insurance automatically covers charter flights
Not informing the insurance company about operational changes
Choosing liability limits based only on price
Failing to update pilot information
Waiting until after charter approval to review insurance
These issues can create unnecessary complications when purchasing or renewing coverage.
Does Part 135 Insurance Cost More?
In many situations, yes.
Commercial charter operations often involve greater exposure because aircraft typically fly more hours, transport paying passengers, and operate under different business conditions.
However, there is no standard premium.
Insurance costs vary widely based on factors such as:
Aircraft value
Aircraft type
Pilot qualifications
Operating history
Claims history
Geographic area
Requested liability limits
Number of aircraft
Type of charter operations
Some small operators may pay significantly different premiums than larger fleets. The only way to understand your potential cost is to obtain quotes based on your specific operation.
Tips for Managing Aviation Insurance Costs
Although premiums are based on many factors outside your control, there are steps that may help improve your insurance profile.
Consider:
Hiring experienced pilots
Maintaining excellent maintenance records
Investing in recurrent pilot training
Implementing strong safety procedures
Reviewing coverage annually
Working with an independent insurance agency familiar with aviation risks
These practices may make your operation more attractive during underwriting.
Why Work With an Independent Insurance Agency?
Aircraft insurance can be highly specialized.
An independent agency works with multiple insurance markets rather than representing only one company. That allows you to compare available coverage options based on your aircraft, business goals, and operational needs.
At Wexford Insurance, we believe education comes first. Our goal is to help aircraft owners understand their options so they can make confident insurance decisions as their operations grow.
Learn More About Aviation Regulations
If you're researching charter operations, these resources provide reliable information:
The Federal Aviation Administration explains the operating rules for private and commercial aviation: https://www.faa.gov.
The National Business Aviation Association offers educational resources for aircraft owners and operators: https://nbaa.org.
These organizations provide valuable guidance, but insurance decisions should always be discussed with a licensed insurance professional.
Frequently Asked Questions
Is Part 91 insurance the same as Part 135 insurance?
No. Part 91 insurance is generally designed for private aircraft operations, while Part 135 insurance is intended for commercial charter operations. The coverages and underwriting requirements often differ.
Can I occasionally charter my aircraft under my private insurance policy?
Possibly not. Whether charter operations are covered depends on your policy and the insurer's approval. Always notify your insurance company before changing how your aircraft is used.
Does every charter operator need the same insurance?
No. Coverage depends on factors such as the aircraft, number of passengers, operating area, pilot experience, and business activities.
What happens if I change from Part 91 to Part 135?
Your insurance program will likely need to be reviewed and updated. Your agent can help determine what coverages may be appropriate for your new operation.
Who should I talk to before starting charter operations?
Speak with a licensed aviation insurance agent, your aviation attorney, and other qualified professionals who understand commercial aircraft operations. They can help ensure your insurance and regulatory requirements align with your business plans.
Request a Free Aviation Insurance Quote
Whether you own one aircraft or manage a growing aviation business, Wexford Insurance can help you understand the differences between Part 91 and Part 135 insurance and identify coverage options that fit your operation.
Contact our team today to request a free, no-obligation insurance quote and speak with a licensed agent about your aviation insurance needs.
