Risk Management & Tort Defense

Protecting Montana's Vital Assets & Resources

Aircraft Insurance Summary

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. For a comprehensive review of coverage and program requirements, please click here for PDF (244kb) or here for Word (49kb). For additional information, please contact the Risk Management & Tort Defense Division at (406)444-2421.


  1. Insurer: ACE Property Casualty 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 worldwide.
  5. Liability Coverage: Bodily injury & property damage, 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) or non-owned aircraft (40 seats or less).
  6. Physical Damage Coverage: Physical damage for state-owned aircraft including disappearance and search & rescue efforts associated with recovery of the aircraft. Physical damage for non-owned aircraft up to 90 days for legal liability only.
  7. Special Conditions: In order for full coverage to be in effect, state-owned aircraft must be reported to the Risk Management & Tort Defense Division immediately. Newly acquired aircraft are automatically covered up to 30 days subject to a policy limit of $1,500,000. Non-owned aircraft are automatically covered up to 90 days for legal liability subject to a limit of $10,000,000. Owned and non-owned aircraft used beyond 90 days must be reported in order for coverage to apply.
  8. 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, insurrection, riot, contamination, pollution, noise, electrical interference, etc.
  9. 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.
  10. Deductible: Paid by the Risk Management & Tort Defense Division for liability coverage. There is an agency deductible of $1,000 for hull coverage. The additional deductible for hull damage is paid by the Risk Management & Tort Defense Division.