Coverages

Hull & Liability

Hull Insurance covers the aircraft, including the engine, propeller, and all other systems and equipment permanently attached to the aircraft (though it may be removable for maintenance), including avionics. Hull insurance is usually issued with a deductible. There are many ways’ hull insurance can be written:  coverage on the ground with no taxi / run up coverage; coverage on the ground to include taxi / run up coverage; or full flight.

Aircraft Liability coverage protects the insured from claims for property damage and bodily injury or death by members of the public and passengers if included under the terms of the insurance. This kind of insurance is written with limits per injured person, and another limit per occurrence. Other policies may be issued with a combined single limit.

Airport Liability and Premises Liability

Airport and Premises liability is commonly referred to as slip, trip and fall insurance. It provides you protection if a customer or a guest on your premises gets hurt.

Most airports carry airport liability to protect themselves. If your company operations are located on airport property it is likely that the airport authority will require youto also carry premises liability. It is common that the airport authority will also request that they be named as additional insured under your policy.
If your company provides services such as an FBO, aircraft repairs, or fuel sales your premises and operation insurance policy will normally provide coverage.

Under CGL policy forms coverage can be provided for premises liability, products and completed operations, personal injury liability, advertising liability, host liquor liability and if you operate an FBO or a facility that provides services, Hangarkeepers coverage can be included.

Aircraft Products and Completed Operations Liability

Aircraft Products

The area of product liability is one of the most necessary coverage’s for the repair shop / FBO to have because of the potential strict liability imposed by the tort system. This means that regardless of any wrongdoing on the part of the insured repair shop/ FBO, they may be named in a suit alleging liability for bodily injury or property damage resulting from a product which has been sold. Examples of this are the sale of aircraft, aviation fuel, or repairing an aircraft part. The primary responsibility falls on any manufacturer of a part or component that is installed in an aircraft. This is true regardless if it is a critical part to the flight of the aircraft, like the engine, or something as innocuous as the door handle. However, if an FBO is involved in the loop from the manufacturer to the consumer, the chance to be named in a suit, in the event of an accident, is a definite possibility. Aircraft products liability is intended to provide defense (even if the suit is groundless) and judgment coverage if the FBO is determined to be legally liable for all or part of the occurrence.

Completed Operations

This exposure involves injury or loss that might occur as a result or work which the FBO performs for their customers. The primary area of concern is the service and repair of the aircraft or aircraft components. The insurance company will look very closely at the previous loss record of the FBO in this area. In an “Occurrence Basis’ policy, the current insuring company will pay all sums which the insured becomes obligated to pay resulting from an occurrence during their policy period. This means the current insurance company could be obligated to pay claims that happened during the current policy period for work the FBO performed on an aircraft or component before the current insurance company was underwriting the policy. Due to this exposure it becomes vitally important the FBO maintains accurate records for any service or repairs they perform. Without detailed maintenance records, it becomes virtually impossible for an insurance company to successfully defend a claim.

Ground Hangarkeepers Legal Liability

When a person or entity accepts the property of another, there maybe an assumption of liability for damage to that property. This would be triggered if the damage occurs due to their negligence and while the property is in care, custody, and control of that person or entity.  This would be true whether the property was inside or outside of a hangar or building. The exposure to loss will be directly affected by the degree to which the FBO takes control of the property. For example, if the FBO is providing full service to his hangar customers, they will probably be involved in towing the aircraft into and out of the hangar, and/or fueling the aircraft. This will most likely constitute a legal responsibility for these aircraft. As such if an accident occurs, it may well be a Ground Hangarkeepers claim. If, on the other hand an FBO never takes physical control of the aircraft and simply provides adequate space to park an aircraft on the ramp, the exposure should be relatively limited.

Ground Hangarkeepers coverage is intended to cover ‘whole aircraft’ or parts of aircraft that have been removed from a ‘whole aircraft’ which is in the FBO’s care, custody, or control. If parts are replaced in the ‘whole aircraft’ then the original part should be covered under Bailee/Business Property of Others coverage. Other aviation parts or components that are brought into the FBO’s location for storage or to be repaired or serviced should also be included in the Bailee / Business Property of Others section of coverage.

In-Flight Hangarkeepers’ Legal Liability

Protects the insured for loss or damage to non-owned aircraft for their legal liability while in-flight and in the insured’s care, custody, or control.  This coverage should be considered if the insured is doing any form of test / maintenance flights of client’s aircraft and or helicopters.  Policy form differs with each carrier, but generally helicopters are considered to be in flight when the rotors are in motion do to the aircraft being started.

Building & Content

This coverage covers your building and any content that would be housed in the building.
A building must be insured. This is common knowledge. If the building has a fire, is flooded by faulty plumbing, or any one of a hundred other things happens that compromises its structural integrity, insurance will help pay for its repairs to get the building back to pre damage condition.
What about all the things that were inside the building? An office building may have computers, photocopiers, and furniture that would also be lost in the event of a fire or flood. A warehouse has stores of inventory that, if lost, could mean incredible loss of income. The contents of a building are at least as important the building itself. And that is why the building’s contents must be insured. Building and contents insurance will cover repairs for damages to the building or its contents, as well as replacement for items that are lost of beyond repair.

Building and contents can be insured separately or together. Some insurance companies will offer a discount for a building and contents package. The amount that the contents can be insured for varies. Business property inside the building can often times be valued at several times more than the building itself. A thorough inventory of the contents will assure that the contents are properly covered and documented in the event of a loss.

Transportation of Goods

If you are shipping products and elect not to use the transportation company’s insurance policy, this type of coverage covers your shipping risk. This covers goods regardless of who owns them during shipment.

This policy will insure goods shipped using a common carrier, or loaded upon, carried by, and temporarily housed or being unloaded from any vehicle owned or operated by you.

Tools & Equipment Floater – Off Premises

This policy is used to insure covered mobile equipment while it is being stored on premises, in transit or at temporary locations or job sites.

Commercial Vehicles & Fuel Trucks

Next to your aircraft, your investment in fuel trucks or support equipment can be the most expensive equipment. When requesting coverage consider all of the extra items that you have added to your equipment and what it would cost to replace should you have a loss.
Fuel trucks for on highway transportation of fuel have insurance requirements that are imposed by government regulation. Make sure to look into the specific insurance requirements for your state. Normally a state specific liability form will be required to be filed. AvQuest Insurance Service is experienced in the placement of this type of auto coverage and we can submit the required documentation to meet your liability obligation.

Does your current commercial auto policy extend to cover pollution exposures?  Even minor spills can be very costly to cleanup. Many auto policies exclude pollution coverage. Pollution coverage can be purchased to insure your exposure.
Ag Operators often overlook the high cost of replacing a loader if there was a loss. Many auto policies only cover the truck and not the added loader. Let us show you how we can properly insure your equipment while saving you money on your auto coverage.

If the only vehicles you and / or your spouse drive are company owned and insured have you consulted your personal policies to make sure that you are insured to drive other cars?

Pollution Coverage

Even the most seemingly benign businesses may carry the risk of producing, storing or emitting hazardous waste materials. Airports, apartment complexes, pig farms, prisons, dry cleaners, printed wiring board manufacturers and amusement parks are just a fraction of the types of businesses for which the companies that provide environmental coverage write policies on a regular basis.
In the mid-1980s, standard commercial general liability policies eliminated coverage for pollution liability claims. As a result, coverage for potential and existing hazards must be purchased separately. Commonly used environmental insurance policies include those for pollution legal liability, property transfer, cleanup cost cap/stop loss, Brownfields restoration and development, secured creditor, professional and contractor environmental liability, transporter insurance, storage tank pollution liability, closure and post-closure.

With some exceptions, most environmental policies are written on a “claims-made and reported” basis. Unlike occurrence forms, claims made forms require that the environmental claim must be received by the policyholder and reported to the company within the policy period or within an extended reporting period. To be continuously covered, the policyholder must continue to renew the coverage at the end of each term. Certain contractor policies may be written on either a claims-made or occurrence basis. Usually, the entire premium for environmental policies is due before coverage is initiated.

As stated in the above description there are several types of pollution coverage’s available. The most common type of coverage that AvQuest Insurance Service provides to our clients are;

Transporter Insurance: Cover a transporter for off-site spills and liability for disposal of waste at a non-owned location. Coverage is included for oil, asphalt, sand and gravel, construction material, chemicals, and other toxic materials. Bodily injury, property damage and cleanup costs are covered, but known conditions, completed operations, and deliberate acts are commonly excluded.

Storage Tank Pollution Liability: Covers releases from scheduled storage tank systems for corrective action on-site and off-site. Bodily injury and property damages are covered, and these policies can be used to meet Environmental Protection Agency and state financial responsibility requirements.

Pollution Legal Liability: Insured are claims from unknown pollution conditions at covered locations specified in the policy. Generally, these policies cover both on- and off-site pollution conditions, and include claims for bodily injury, property damage and cleanup costs. Often, business interruption and transportation claims will be covered, but costs of an ongoing cleanup or existing, known contamination are not. Pollution legal liability policies are modifiable to fit individual circumstances and many terms and coverage’s are negotiable.

Professional Liability

Professional Liability insurance provides protection against claims that the policyholder becomes legally obligated to pay as a result of an error or omission in his professional work. Also known as Errors and Omissions insurance, this type of professional liability insurance is critical to your business. E&O insurance responds to claims of professional liability in the delivery of your technical services. Allow us to customize an errors and omissions insurance policy for you that is affordable and effective.

Workers Comp

Each state has specific requirements for providing workers compensation / employee benefits coverage.  While aviation operations are harder to insure AvQuest Insurance Service represents several carriers who are willing to review and underwrite aviation accounts. If you operate in multiple states some carriers are able to include all of these states under one policy in lieu of writing a policy with each individual State Fund program.

Have your sub-contractors provided you with a copy of their workers compensation policy?  You should request this from each sub-contractor and keep it on file in the event of an audit by the State.  You should also follow up each year for a new certificate of insurance for your file