As the flight was Private, not for hire or reward, I think the only personal insurance effected will be any policies the pax may have had themselves, (and may not include cover whilst flying in a private aircraft).
The aircraft will be covered by it's hull insurance, if not self insured by the owner.
The third party legal liability insurance, i.e. the cover for tall buildings etc. etc. is possibly a mandated amount, set by the FAA(?), and would probably be higher for flights around New York than somewhere out in the Mid West.