By Michael Jones
May 23 - (The Insurer) - Aviation insurers are not expected to face significant losses from the crash of a private Cessna 550 in San Diego on Thursday, three senior aviation market sources told The Insurer.
The private jet crashed in San Diego's Murphy Canyon neighbourhood early on Thursday, local authorities said. Multiple homes and vehicles were damaged, assistant fire department chief Dan Eddy said.
Eddy said at a news conference that the department did not know the exact number of casualties from the incident but that there are "multiple fatalities". A Cessna 550 typically carries eight to 10 people including the pilot.
Three aviation insurance sources said the incident is not expected to be a significant loss for the market. One senior broking source speaking on condition of anonymity said the combined single limit, combined public liability and passenger liability coverage for the plane totals around $1 million, while two senior sources said the plane's hull value is also low.
One aviation broking source explained that, unlike in Europe, the U.S. does not mandate the limits operators should purchase.
Thursday's crash is the latest in a series of liability incidents to affect aviation insurers in North America in 2025. These include the crash of a Bell 206 tourist helicopter into New York City's Hudson River, the Delta Air Lines incident in Toronto, the Bering Air crash and the American Airlines disaster.
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