When leasing your aircraft to an FBO for student instruction, what will you likely need to change regarding your insurance coverage?

• A. No change is required
• B. You will need to add coverage for personal use
• C. You will need to add limited commercial use coverage
• D. You will need to cancel the existing policy

Answer: (C)

When leasing your aircraft to a Fixed Base Operator (FBO) for student instruction, it is essential to understand the implications for your insurance coverage. In this scenario, adding limited commercial use coverage is necessary because allowing an FBO to use your aircraft for instruction transforms its use from private to commercial.

Standard personal aircraft insurance typically does not cover commercial operations, which include flight training and instruction activities. Therefore, to align your insurance with the new usage, it would need to reflect the risks associated with commercial operations. Limited commercial use coverage is specifically designed to address the protected activities that arise from leasing your aircraft for instruction purposes. This ensures that both you and the FBO are safeguarded against potential liabilities that might occur during that commercial use.

Adapting your insurance in this way is vital to remain compliant and protected, while also securing adequate coverage for any increased risks associated with commercial operations, such as potential injury to students or damage to property during instructional flights.