Airliner Insurance

[EconomyClass]

Apparently when an airline insures one of its big jets, the policy is syndicated among a group of underwriters. Makes sense when a piece of property goes for tens or hundreds of millions. Anyway, I got to wondering what the premium is like. If the likelihood of every paying off is miniscule, then the customer should get a pretty big policy for not too high a premium. Given the tight circumstances for companies flying right now, I'd think now, more than ever, they need that cheapness. But what is it in dollars and cents? Or francs? Or dinars? Do you suppose Iran covers its own planes?

[Tucsonman]

The premium is pretty hefty. So much so that if an airline has cause to make a claim, it will not do so unless it is worth it.
I administered the insurance for 17 years for a now defunct airline (guess which one). With an average of 13 bird strikes a week, i was pretty busy just with engine claims. Two other guys did the aiframe claims.

[ptbodale]

The deductable for a few airlines is $5 million.