If you operate within, into, out of, or over the territory of an E.U. Member State, including its territorial waters, you will be affected by E.U. Regulation 785/2004 on insurance requirements for air carriers and aircraft operators. This Regulation becomes effective April 29, 2005, and is intended to ensure minimum levels of insurance for air carrier liability with respect to passengers, baggage, cargo and third parties. The Regulation specifies minimum insurance limits, based on aircraft weight and seating. The greatest challenge presented by this Regulation will likely be the war risk insurance provisions, especially in this post-9/11 era.