Description
Certain operations are handled differently than general aviation.  These include scheduled airline known as a Part 121 carrier, charter operations known as on demand, instruction and rental insurance and incidental commercial operations.  

Part 121 carriers are airlines that run on specific routes and times, for hire, regulated by FAA regulations part 121.   On demand is a charter flight that one can request, also known as part 135.   Corporate departments often fly under this regulation.  As of 1997 however, the smaller aircrafts that transported 10-30 people and were under Part 135 were now placed under the regulation 121. This was done to so that the smaller aircrafts of 10-30 passenger capacity would have the same operating rules as the bigger aircrafts. There are still significant differences between the larger and smaller aircraft, thus making the use of smaller aircraft more risky. The standards required for the smaller aircraft continue to be below that of the larger aircraft. In addition, pilots of larger aircrafts must retire by the age of 60 while the smaller aircraft pilots have four years more to comply with the mandatory retirement. Lastly, though it has been proposed, currently the crew of a small aircraft must follow the rules of 135 on flight duty time and rest periods which are not as strict as those of 121.  Instruction and rental refers to organizations that provide flight instruction or aircrafts for rent.  Incidental commercial operations are essentially an aircraft used for commercial purposes on a part time basis

Statistics
Individuals and companies are choosing on-demand air travel for personal and business travel. Safety and security are some of the reasons why they do so. Flexibility is another big reason, with the ability to fly to more than 5000 airports in the U.S. – more than 100 times that of the airlines. About 15,000 business aircraft are in operation in the United States with just 3% of them flown by Fortune 500 companies. As of 2007 the accident rate for corporate aircrafts is the same as commercial airlines while the commercial air taxi rate is higher.

Questions to ask an expert
  •  Does the insurance carrier have experience insuring part 121 and 135?
  •  How do I identify my risk exposure?
  •  What are the charter operator's insurance coverage and limits?
  •  Will those people chartering the plane be covered under the charter company's policy

General Tips
  •  You should know your liability coverage limits and consult your agent to add additional protection. Note that in the event of a claim you and anyone listed as additional insured will share the liability limit.
  •  Provide accurate information about your business to your broker including how long you have been in business, the experience of your key employees and your clean loss record
Insurance companies have information regarding accident rates for types of aircraft operations – obtain this information to assist you in managing your risk and insuring yourself properly
  •  Ask the carrier their statistics on client satisfaction
  •  All pilots must meet all of the requirements listed in the policy
  •  Make sure that your insurance is up to date at all times
  •  Please note that it is your insurers responsibility to notify the Dept of Transportation of any changes in the insurance (the insurance coverage remains the same until the Dept of   •  Transportation gets official notification)
  •  It is a federal regulation that a aircraft carrier must maintain proper insurance.

Books and Publications
  •   Introduction to Aviation Insurance and Risk Management, Second Edition (Hardcover)