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MRO Aviation Insurance

Maintenance, repair, overhaul (MRO) shops purchase products and completed insurance. Specifically completed operations is defined as aircraft repairs and servicing, including installation of parts and accessories.

FAA Part 145 repair stations are aviation companies that are approved to perform maintenance, repair and overhaul services on aircraft. This can range from heavy maintenance inspections on commercial aircraft like Airbus and Boeing to general aviation aircraft like Gulfstream, Falcon, Bombardier to light general aviation aircraft like a Cessna 172 or Cirrus SR22.

Coverage Highlights

  • General Aggregate Liability Limit
  • Products and Completed Operations
  • Grounding
  • Hangarkeeper’s Property Damage Liability
  • Workers compensation

What Our Clients Are Saying...

Types of insurance we offer for Maintenance, Repair, & Overhaul shops

MRO shops can range from on-airport repair and service shops to off-airport completion centers for airplane parts that are later installed on a manufactured aircraft, such as a nut or bolt.

The majority of the premium that MROs are charged is Products Liability for the repair and service of aircraft maintenance. The premium that is charge is based on the liability limit, annual sales, a description of how critical the maintenance operations are and loss ratio.

General Aggregate

General aggregate is the total amount of liability the insurance company will pay for a policy period. People will refer to this coverage as slip and fall or premises liability. An example would be $10,000,000 per occurrence/aggregate.

What do underwriters need to know about quoting Maintenance, Repair, & Overhaul shops?

There needs to be detailed description of the products manufactured or maintained. If the maintenance company is working on engines they need to know whether it’s turbine engines or reciprocating engines. Maintenance and manufacturing of engines is considered a critical flight operations and gets higher rates than non-critical such as sheet metal, nuts or bolts.

Below is a list of most to least critical:

  1. Engines
  2. Flaps or wing surfaces, landing gear
  3. Sheet metal, nuts, and bolts

Sales Receipts for current year and estimated annual sales

The insurance company will need to know what the MROs sales are for each category.

Estimated Sales next 12 months:

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

Grounding

To pay on behalf of the Insured all sums which the Insured shall become legally obligated to pay as damages for the loss of use of completed aircraft occurring after delivery to and acceptance for flight operations by a purchaser or purchasers or operator or operators of such aircraft, and caused by a grounding following an occurrence arising out of the Products Hazard.

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 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.

Workers compensation

The limits of our liability for aviation workers compensation insurance:

  • $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

Aircraft Hull & Liability

Many MROs 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.

Already have MRO insurance?

MRO companies will already have insurance for their company but what are some good questions to ask to ensure you’re getting the your risk quoted by all the insurance companies.

Questions to ask your current carrier and broker:

  1. What insurance companies are quoting MRO aviation insurance?

  2. How can I estimate the insurance premium for my MRO shop?

  3. What limits of liability will be sufficient to cover my MRO operation?

  4. Are there any discounts or dividends programs available for my MRO workers compensation policy?

  5. What’s the difference between hangarkeeper’s, premises liability, and products liability?

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Aircraft We Cover

Airbus

Airbus

Avanti EVO

Avanti EVO

Beechcraft

Beechcraft

Bell

Bell

Bombardier Challenger

Bombardier Challenger

Bombardier Global

Bombardier Global

Cessna Caravan

Cessna Caravan

Cessna Citation

Cessna Citation

Cessna Conquest

Cessna Conquest

Cirrus

Cirrus

Daher

Daher

Dassault Falcon

Dassault Falcon

De Havilland Canada

De Havilland Canada

Diamond

Diamond

Embraer

Embraer

Embraer Phenom

Embraer Phenom

Epic

Epic

Extra

Extra

Gulfstream

Gulfstream

Hawker

Hawker

Honda Jet

Honda Jet

Learjet

Learjet

Leonardo

Leonardo

McDonnell Douglas

McDonnell Douglas

Pilatus

Pilatus

Piper

Piper

Piper Cheyenne

Piper Cheyenne

Robinson

Robinson

Sikorsky

Sikorsky