Which coverage reimburses the insured for the cost of renting a substitute aircraft during repairs after an accident?

• A. Loss of use coverage
• B. Hull coverage
• C. Liability
• D. Medical payments

Answer: (A)

Loss of use coverage reimburses the insured for the cost of renting a substitute aircraft while their own aircraft is out of service for repairs after a covered loss. It’s designed to keep operations and revenue going when the damaged aircraft can’t be flown, rather than paying for the aircraft’s repair itself. This is different from hull coverage, which pays for damage to the insured aircraft; liability covers third‑party injuries or property damage; medical payments cover medical costs for occupants or others. So rental expenses for a substitute aircraft are covered by loss of use.