Insurer Challenges Coverage After Kansas Skydiving Death

A federal insurance dispute in Kansas centers on whether a skydiving operator's premises policy covers a fatal propeller accident at Air Capital Drop Zone in Sedgwick County after a woman died when she was struck by a running aircraft.

US Specialty Insurance Company filed a complaint on October 9, 2026, in the US District Court for the District of Kansas against Myrtle Aviation Inc., Crosswinds Aviation, Harco National Insurance Company, and the victim's estate administrator and father, according to the filing.

The insurer is seeking a court declaration that it owes no coverage because the policy excluded aircraft liability. The dispute involves a premises policy with limits of $1 million per person and $1 million per occurrence, according to the complaint.

The complaint states that the policy "contains no aircraft liability coverage" stated the complaint.

The filing says Myrtle Aviation operated Air Capital Drop Zone and owned the 1977 Cessna 182Q involved in the incident. The woman had taken a jump flight to photograph skydivers and was struck after moving into the propeller area while the engine remained running.

The complaint also states that Myrtle Aviation "did not buy aircraft liability insurance that would cover the accident, from USSIC or from any other insurer." stated the complaint.

US Specialty argues the death resulted from aircraft operation rather than a condition of the premises. The insurer says the aircraft exclusion applies because the policy excludes injuries connected to aircraft owned or operated by an insured.

The policy language cited in the filing excludes bodily injury "arising out of the ownership, maintenance, use or entrustment to others of any aircraft" stated the complaint.

The complaint further cites the exclusion's definition that "use includes operation and loading or unloading." stated the complaint.

The insurer also disputes coverage for Crosswinds Aviation, the airfield landlord listed as an additional insured. US Specialty argues that even if Crosswinds qualifies as an insured, the aircraft exclusion still applies because the aircraft was owned by Myrtle Aviation.

Harco National Insurance Company, which insures Crosswinds, separately sought defense-related payments, according to the complaint. US Specialty says it agreed to defend Myrtle Aviation and Crosswinds while reserving its rights, but is asking the court to determine whether it owes defense or indemnity obligations.

The underlying wrongful-death allegations have not been decided, and the court has not ruled on the insurance coverage dispute. The case remains pending in the US District Court for the District of Kansas.