Fixed Base Operations (FBO)

A fixed base operator is normally granted the right to operate at the airport to provide services such as fueling, hangaring, tie-down and parking. The FBO may also provide aircraft rental, flight instruction, or aircraft maintenance.

Each type of service the FBO provides has its own risk associated with the service provided.

Aircraft Fueling

Aircraft fueling can result in damage to the aircraft by the negligence of the refueling personnel. The fuel truck may make contact with the aircraft. A ladder used in the fueling operation could fall over causing damage to the aircraft. To protect the FBO, a ground hangarkeepers legal liability insurance policy should be part of the comprehensive insurance plan.

While quite rare, fueling the aircraft with the wrong type of fuel can have devastating consequences.  The FBO can protect its operation against claims made against it for this type of damage by having an aircraft products and completed operations liability insurance policy as part of a comprehensive insurance plan. An aircraft products and completed operations liability policy is intended to provide a 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.

Additional exposure from aircraft fueling would be a fuel spill. To protect the FBO, pollution legal liability insurance should be a part of a comprehensive Insurance plan. These policies can 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.

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