Different types of operations require different coverages. Commercial airports, municipal airports, and private airstrips don’t have the same needs. Employee responsibilities can range from operations to mechanics to pilots.
There’s no one-size-fits-all aviation coverage and an insurance carrier must provide the right protection for every situation. Whether transporting people or cargo, there’s an obligation to deliver everyone and everything safely. Liability needs can vary greatly from one business to the next.
Use the yellow hot spots and explore how aviation insurance can help protect against common risks.
Flying an aircraft comes with some inherent risks, not only to the person operating an aircraft and its passengers but also to the general public. If there is a mishap that involves damage to property or the general public you, as the pilot in command, are liable to the public.
Public liability insurance, often referred to as third-party liability, covers aircraft owners for damage that their aircraft does to people to people and property, not including the passengers on the aircraft.
Whether you are in the business of transporting people or you simply like to take people for rides to share the joy of flight with them, as the pilot in command, you are taking on the responsibility for their safety. Hold harmless and liability waivers are of little protection, if any, for pilots.
Passenger liability insurance protects passengers riding in the accident aircraft who are injured or killed. Coverage is often sold on a per-seat basis, with a specified limit for each passenger seat.
Borrowing or renting an aircraft? Taking flying lessons? Chances are you still have a risk exposure that may not be covered by the aircraft owner’s insurance.
Non-owned aircraft insurance protects you from legal obligations that may arise out of operating an aircraft you do not own. In addition, it provides for extra expenses including search and rescue, emergency flight coordination, legal expenses, and more.
Aircraft are very expensive, as are repairs to them. Strict regulations require planes to be in a certain condition in order to fly. One brush against a hangar or other damages to your aircraft can lead to some very large repair bills.
Hull insurance protects your aircraft in case of damage. There are different types, such as in motion and not in motion, as well as full flight protection. Premiums and deductibles on hull insurance can vary based on the value of the aircraft.
Hangar owners face unique risks for property in their care, custody or control, as well as the hangar itself.
Hangar keepers insurance provides protection to the owner of the hangar for the building and the contents of others inside the hangar. It can also provide coverage for tools and equipment. Hangar keepers can be a standalone coverage or part of an airport’s insurance package.
If one of your employees receives an injury or becomes ill due to a work-related occurrence, you are required by law to have the proper coverage in place. Working with tools, machinery, and aircraft can be an even riskier occupation than most.
Workers' compensation protects your employees should a job-related injury or sickness occur during the course of employment. This coverage is required by law, so be sure that you have it. Placing workers’ compensation for an aviation operation can be particularly difficult, so having an insurance advisor who understands the industry is crucial.
On average, it's estimated that three out of five businesses will be sued by their employees. Companies are vulnerable during the pre-hire process, throughout employment, and during a reduction in workforce. Claims can also be made by clients or potential clients and can arise in any size operation. You can do everything right and still be sued.
Coverage to protect you against this risk normally comes as a standalone policy. The right coverage is critical to your risk management process as it protects against discrimination, wrongful termination, sexual harassment, and other employment-related allegations. Typically, the policy will cover your business as well as your directors and officers. Third-party coverage is an added option, usually accomplished via a policy endorsement, and addresses claims made by customers or vendors against you from acts committed by employees.
The internet has spun a whole new web of liability exposures. E-commerce, social networking, cloud storage, and other technologies bring great benefits to all businesses. But with these benefits also come challenges, including protection of privacy, data, and financial information of your employees and students.
Cyber liability coverage covers unauthorized access to electronic data or software within your network. It also provides coverage for spreading a virus, computer theft, extortion, or any unintentional act, mistake, error, or omission made by an employee. This coverage is quickly becoming more and more important as you embrace technology.
What happens when your operation faces a large liability loss that exceeds the basic limit of your standard policy?
A commercial umbrella policy provides high limits of insurance, typically between $2,000,000 and $10,000,000. Coverage is extended over your general liability insurance, workers' compensation, business auto, as well as directors and officers liability coverage. It provides a great safety net and helps ensure your business is well protected.
Aviation operations must also insure their facilities and everything inside. This includes buildings, equipment, and inventory. Whether flying is all you do or just a part of a larger organization, specialized aviation insurance can offer protection and peace of mind so you can focus on what you do best. And since you’re running a business, you also need workers’ compensation, general liability, cyber liability, and business auto insurance.
To learn more about how specialized insurance can benefit your operation, contact us today.