Risk Management & Tort Defense

A summary of aircraft coverage, exclusions, and policy information is provided below. Coverage may vary by agency and aircraft. This summary does not alter or amend coverage provided in statute or under the state property/casualty insurance program. Specific exclusions, limitations, or conditions may apply. Pilots that are approved by the state to fly aircraft must meet the pilot requirements found here. For additional information, please contact the Risk Management & Tort Defense Division at (406)444-2421.

SUMMARY

1. Insurer: Chubb – Westchester Fire Insurance Company.
    
2. Broker: Mountain Air Insurance Services.
    
3. Term: 7/1 to 6/30 each fiscal year.
    
4. Coverage Territory: This policy applies to insured events in the United States (excluding Alaska), Canada, and Mexico.
    
5. Physical Damage Coverage: Physical damage for state-owned aircraft, up to stated value including disappearance and search & rescue efforts associated with recovery of the aircraft, emergency landings, spare parts, temporary rental of aircraft/parts, extra repair expenses, transportation costs, expediting expenses, etc. Changes in reported values must be reported within 90 days. Physical damage for owned aircraft not to exceed 10 passenger seats. Exclusions: mechanical breakdown, wear and tear, loss of use, conversion, embezzlement, etc.
    
6. Liability to Others: Bodily injury, property damage, cargo (except valuables and animals), and passenger baggage, use of premises, including defense costs, which the state is legally obligated to pay others as a result of the negligent operation of an owned aircraft (10 seats or less including crew). Exclusions: Noise pollution, employee injury, assumed liability, etc.
    
7. Non-Owned Aircraft Liability: Bodily injury, property damage, cargo, and passenger baggage, use of premises, including defense costs, which the state is legally obligated to pay others as a result of the negligent operation of a non-owned aircraft provided the aircraft is reported within 90 days. Exclusions: Aircraft which have a seating capacity (including crew) of more than 40. Aircraft leased for more than 30 days.
    
8. Non-owned Aircraft Physical Damage Liability Coverage: Physical damage for non-owned state aircraft with a certified gross weight not to exceed 12,500 pounds and a maximum of 40 seats (including crew) provided the aircraft is reported within 30 days.
    
9. Newly acquired aircraft: Up to 150% of the highest amount of insurance shown in the declarations not to exceed $10 million. Aircraft up to 20 seats (including crew). Newly acquired aircraft must be reported within 90 days.
    
10. Other Exclusions: Coverage will not apply if the aircraft is piloted by a pilot not approved by the state, the pilot is not properly certified/qualified/rated by the FAA, the airworthiness certificate is not in full force, or losses arise from war, invasion, nuclear events, strikes, riots, sabotage, hijacking, , date recognition errors, contamination, pollution, noise, electrical interference, pleasure and business, charter commercial, instruction and rental, wear and tear, etc.
     
11. Limit: Liability: $10,000,000 subject to the state's tort damage cap of $750,000 per claim, $1,500,000 per occurrence (§2-9-108,MCA). Physical Damage Coverage: Values reported by state agencies. Various other sub-limits apply based upon type of coverage and aircraft.
     
12. Deductible: Paid by the Risk Management & Tort Defense Division for liability coverage. There is an agency deductible of $1,000 for hull (i.e. physical damage) coverage. Any deductible amounts for hull damage above $1,000 are paid by the Risk Management & Tort Defense Division.