When a business jet is grounded for repair, the owner keeps flying: on charter, on a fractional card, or on a borrowed aircraft. That cost is loss of use, and standard aircraft hull forms exclude it, along with diminution in value. Both can be bought back as options with their own sublimits.
The size of the sublimit
Buy-back sublimits run on the order of $5,000 a day and $300,000 an occurrence. A repair that grounds a light jet for two months can consume that occurrence limit in charter alone, and larger cabins reach it faster.
Why it matters
- For underwriters: the exposure is in the repair duration, not the day rate.
- For claims: a single repair of a month or more can bring a loss of use claim to the cap.
- For owners and brokers: the buy-back is often sized to a day rate that a long repair exhausts.