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Fixed Base Operator Insurance

Fixed Based Operators (FBOs) refers to the airport-based, commercial operations which provide some or all of the of the following activities:

Line services
Aircraft and engine maintenance
Sale of parts and accessories
Aircraft sales
Charter and rental of aircraft
Corporate flight services
Flight training
Maintenance and repair service
Repair stations

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Coverage Highlights

The primary coverages considered by commercial operators include

Aircraft Hull & Liability
Airport Premises Liability
Hangarkeepers Legal Liability
Products & Completed Operations Liability

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Types of FBO insurance we offer

Fixed Base Operators operators purchase an Airport Liability Policy which is another way of saying Aviation Commercial General Liability.

Aircraft Hull & Liability

Many FBOs also own and operate aircraft of their own for charter, industrial aid (pro pilot), or pleasure and business operations. The coverage for aircraft insurance is Aircraft Hull & Liability.

Airport Liability Policy

FBO operators purchase an Airport Liability Policy which is another way of saying a Commercial General Liability policy for airports. This coverage includes:

Bodily Injury and Property Damage – pays those sums that the Insured becomes legally obligated to pay as damages because of “bodily injury” or “property damage” resulting from your “aviation operations” to which this insurance applies.
Personal & Advertising Injury – pays those sums that the Insured becomes legally obligated to pay as damages because of “personal injury” or “advertising injury” resulting from your “aviation operations” to which this insurance applies.
Medical Payments – pays for bodily injury claims on premises you own or rent; where there are medical bills from doctors or hospitals
Ground Hangarkeeper’s Property Damage Liability – pays those sums that the Insured becomes legally obligated to pay as damages because of direct loss or damage, including loss of use, to an “aircraft,” and parts of “aircraft,” which are someone else‟s property and which are in the care, custody or control of the Insured, as bailee, for storage, repair, servicing or safekeeping (as evidenced by the Insured‟s records) but only while the “aircraft” is not “in flight” and while the “aircraft” is situated at the airport premises

Products and Completed Operations

Products and Completed Operations is a part of the Airport Liability Policy if the FBO is also conducting maintenance, repair and overhaul. This would also included parts sold whether installed or not installed. Underwriters will need to know the breakdown in prior year sales and estimated sales for the renewal policy period. Example below. Your rate will depend on underwriting interest. It would be safe to estimate your premium to be somewhere around 1-2% of sales.

Repair & Service $1,000,000
Parts Sold But Not Installed $500,000
Avionics Repairs & Service $500,000
Sale of Fuel & Lubricants $5,000,000

Pollution Liability

A Fixed Base Operator will purchase Pollution Liability insurance to protect against spills or releases involving hazardous materials or petroleum products. It’s basically coverage to clean up fuel spills from fuel storage tanks and fuel trucks. A smaller FBO that is selling Jet A and 100LL Av Gas will purchase liability limits between $1,000,000 and $5,000,000 each pollution condition and in the general aggregate. The premium for a policy like this will be around $20,000 annually. Large franchise FBOs will purchase much higher limits such as $50,000,000.

Commercial Business Auto

FBOs often have crew cars for pilots or their own fleet of business vehicles for employees to commute for business purposes. To get the best rates you will need to provide a vehicle schedule and drivers list.

Year	Make	Model	Collision Deductible	Comprehensive Deductible	State of Registration
2021	Mercedes Benz AMG G 63	SUV	$1,000	$1000	CA
2022	Chevrolet	Suburban	$1,000	$1000	CA
2019	Range	Rover	$1,000	$1000	CA

Management Liability, Directors & Officers, Errors & Omissions

A Fixed Base Operator often has management liability but many people also refer to it at “D&O” or Directors and Officers. The minimum limit purchased is $1,000,000 and large firms can see limits up to $20,000,000 per occurrence. It protects the management team from misrepresentation, defamation (including libel and slander), invasion of privacy, false impersonation, negligent hiring or retention, negligent training, and sexual harassment.

Commercial Property

Commercial Property can include actual building properties or business equipment. For the property mainly they are concerned with the value and the risk of fire along with the given locations. Below is an example of an equipment schedule:

Equipment Description	Agreed Value
2021 Lektro 8600	$72,000
2017 1000 Gallon Capacity Avgas Truck	$300,000
2017 5000 Gallon Jet Truck	$310,000

Workers’ Compensation

The limits of our liability for aviation workers compensation insurance:

Liability Limit	Type	Per
$1,000,000	Bodily Injury by Accident	$ each accident
$1,000,000	Bodily Injury by Disease	$ policy limit
$1,000,000	Bodily Injury by Disease	$ each employee

Premises

Premises often is referred to as slip and fall coverage within a confined premises. It is a general liability policy that protects against bodily injury and property damage.

Location of airport premises owned, rented to or occupied by the Named Insured at the beginning of the Policy Period: Airport and all premises necessary and incidental to the operations of the Named Insured.

Personal & Advertising Injury

Pays those sums that the Insured becomes legally obligated to pay as damages because of “personal injury” or “advertising injury” resulting from your “aviation operations” to which this insurance applies

Hangarkeepers Liability

Pays those sums that the Insured becomes legally obligated to pay as damages because of direct loss or damage, including loss of use, to an “aircraft,” and parts of “aircraft,” which are someone else’s property and which are in the care, custody or control of the Insured, as bailee, for storage, repair, servicing or safekeeping (as evidenced by the Insured’s records) but only while the “aircraft” is not “in flight” and while the “aircraft” is situated at the airport premises shown in Item 4. of the Declarations. The “aircraft” or its parts may also be temporarily elsewhere, but must be under the Insured’s physical control for the purpose of service or repair.

Already have FBO insurance?

A Fixed Base Operator already has insurance so what questions should you be asking your broker or current carrier?

Questions to ask your current carrier:

What is the pool of insurance carriers that are quoting my FBO insurance business?
What have their responses been this year and previous years?
Why are some carriers quoting my FBO business and others are not?
How do I ensure there are no gaps in coverage?
How can I estimate the rate or premium I am being charged with other FBOs insurance premium?