What would a standard aviation policy for an airline most likely cover?

Study for the CII London Market 1 (LM1) Test. Enhance your knowledge of the insurance industry with multiple choice questions. Discover hints and explanations to get exam ready!

A standard aviation policy for an airline primarily focuses on the risks associated with aircraft operations, including the safety and well-being of passengers. While illness caused by food provided on the plane might seem relevant, standard aviation insurance typically addresses liability arising from incidents during flight operations rather than foodborne illnesses.

The correct option relates to passenger injury, as it is a common area of coverage in aviation policies. This coverage focuses on the liability the airline may face if a passenger is injured while on board the aircraft. Aviation policies are structured to protect against various liabilities, including those stemming from accidents that could occur while the airline is actively operating its flights.

In contrast, other options such as injuries to airline employees or terminal injuries fall under different types of insurance, like workers' compensation or general liability insurance respective to the business operations outside of aviation. Additionally, liability for damage to baggage during ground transit usually comes under a separate coverage arrangement rather than standard aviation liability policies.

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