What type of insurance is legally required for commercial airlines?

Liability insurance is legally required for commercial airlines primarily to ensure that they are financially responsible for damages that may arise from their operations. This type of insurance covers claims made by passengers, crew members, and third parties for bodily injury or property damage resulting from an airline's negligence or accidents. This requirement is essential for maintaining safety standards and protecting the interests of the public, passengers, and other stakeholders.

The obligation to carry liability insurance is generally set forth by national aviation authorities and international agreements, which mandate that commercial airlines must have a minimum level of coverage to operate safely within the aviation industry. This insurance helps assure the public that, in the event of an accident, there will be resources available for restitution.

While the other types of insurance mentioned—property insurance, flight crew insurance, and passenger insurance—may provide additional layers of protection and cover different aspects of the operation, they are not mandated by law in the same way liability insurance is for airlines. Property insurance protects the airline's assets; flight crew insurance provides personal benefits to the crew; and passenger insurance may cover specific risks for travelers but does not fulfill the commercial liability requirement.