With the rise in air travel to and from regional airports comes an increase in financial risk to those who own and operate airfields. From bodily injury to damage or even total destruction of buildings and their contents, community airports have a lot of assets in play. A well-rounded selection of insurance policies can protect your investment. We’ll look at the most essential options here.
Commercial general liability insurance
If an injury occurs to guests on your premises or you are at fault for damage to their property, you could face a demand for restitution. Even something as simple as a mishandled security event can expose you to a lawsuit. Additionally, your guest facilities, such as flight schools and restaurants, can generate claims. Commercial general liability (CGL) insurance can protect you from substantial financial loss resulting from allegations of negligence, including negligent supervision.
Your CGL can also provide coverage for personal injury and advertising injuries. Examples include an alleged wrongful detention by your security personnel, a mishandled eviction from the premises, or a defamation allegation by a competitor.
Commercial property insurance
Commercial property insurance helps pay for you to recover from damage to your buildings and their contents.
If your airport has special design features based on regional attractions, such as specialty timber, regional stone, or artistic sculptures, you may need tailored insurance for that particular business property. A knowledgable JAISIN advisor who specialize in regional airport coverage can help you find exactly what you need.
Flood and earthquake coverage may be sold separately, so inquire about those protections if you are in a region subject to those perils.
Business income coverage is a kind of property insurance that steps in if your revenue is paused because of a covered loss to your building or contents. It can provide a flow of income as well as funding for extra expenses you incur, such as the costs of renting equipment that gets you back in business fast.
A variety of equipment vital to air operations can suffer damage that causes lost income or expensive repairs. Equipment breakdown insurance is another property policy that covers electrical arcing, power surges, and other hazards. Equipment breakdown coverage can help with repair costs, faster delivery of vital parts, known as “expediting expenses coverage,” and reimbursement of lost business income.
Fixed-based operators present special needs
Insurers that offer airport coverage understand the hazards associated with fixed-base operators (FBOs). FBOs are specialized businesses located at your airport. They offer a variety of services, such as crop dusting, aircraft rentals, flight training, conference facilities and aerial surveying. You may even have flying clubs operating out of your hangars.
FBO operators may provide fueling, mechanical services and aircraft storage, to list a few activities. These operations create liability. A fire in a repair hangar, a student killed in a crash – a lot of things can go wrong with FBOs. And every airport, whether a hub or a small airport, has one or more of these exposures.
Additionally, your FBOs will need hangar keepers liability insurance to protect them when they have others’ aircraft in for storage, repair or other reasons. This coverage can also protect against losses arising from bodily injury or property damage occurring on the premises your FBOs control.
Your airport insurance application will ask you to detail the number and type of FBOs located on your premises. Some aviation insurers offer risk management tips to help you ensure your FBOs operate safely.
Aviation workers’ compensation insurance
Ground crew, flight crew and terminal employees all face different risks. Workers’ compensation coverage for airports can help pay medical expenses, lost wages, rehabilitation and other costs associated with a workplace injury.
Cyber insurance vital for airports
Even one cyber attack can bring years of litigation. Third-party cyber insurance will help pay restitution to victims if a hack of your systems causes loss of personal identifiable data. If your systems are shut down or your airport’s assets are stolen due to a cyber crime, first-party cyber insurance can help get you back in business.
Aircraft hull and liability insurance
If your business owns aircraft, you’ll need aircraft hull and liability insurance. It offers physical damage coverage for your aircraft and helps pay if there are bodily injury allegations. It also includes property damage protection, such as for passengers’ luggage, as well as damage your plane may cause to the property of others.
Employment practices liability insurance
An employment practices liability policy helps you with legal defense costs if your airport is accused of wrongdoing in the hiring, firing or personnel management process. It will also help pay judgments or settlements if the case isn’t dismissed.
Business auto coverage
You undoubtedly have fleet vehicles that service your premises and transport your managers to outside events. Whether your employees drive their own vehicles on your behalf or you own vehicles, you’ll need business auto insurance.
Specialized equipment such as mobile equipment not meant for road use – for example, loaders, automated guided vehicles, refuelers and other vital apparatus – are not covered under business auto insurance, so talk to your JAISIN advisor about the policy needed for that equipment.
Other insurance considerations
A general liability policy provides coverage for allegations of negligence. However, that policy might not provide all the kinds of coverage you need after a violent event with injuries. An active assailant policy can provide protection for some of the coverage gaps you may face after a violent event. This can include post-event public relations assistance and counseling for victims.
The nation is witnessing growth in many small and midsize airports. Your insurance coverage should scale as you grow. Even if you are only upgrading, not expanding, talk to your JAISIN insurance professional about the increase in value of your facility.
Because benefits are a key component of hiring the right team, you’ll want to consider insurance for benefits-administrator errors. One missed filing or a lost document can cause great financial loss. Insurance for these benefits errors is surprisingly affordable and offers you peace of mind.
Your regional airport provides a great service to your community, so keep it soaring with the right blend of insurance and a JAISIN advisor who specializes in the aviation industry. Call or email us for more information on what insurance your airport needs to keep flying in the skies.
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