Most FBOs and MROs need an insurance program made up of several coordinated policies—not one catch-all aviation policy. The appropriate program depends on what your operation actually does, the property and aircraft entrusted to you, your employees, your contracts and the liabilities you assume.

For many operations, Aviation Commercial General Liability and Commercial Property are the foundation. But that is usually only the beginning. Aeris works with airports and aviation services businesses facing these overlapping exposures.

For many operations, Aviation Commercial General Liability and Commercial Property are the foundation. But that is usually only the beginning.

Common insurance coverages for FBOs and MROs

Depending on the operation, an aviation business may need coverage for:

Aviation commercial general liability
Commercial property
Hangarkeepers legal liability
Products and completed operations liability
Workers’ compensation
Business interruption and extra expense
Environmental pollution liability
Hired and non-owned aircraft liability
Cyber liability
Employment practices liability
Professional liability or errors and omissions
Excess liability

The exact combination depends on the exposures created by your business.

An FBO that fuels, moves and stores customer aircraft has a different risk profile from an MRO performing inspections and maintenance. A repair station handling high-value turbine aircraft may have different aviation liability limits and contractual requirements from a smaller operator serving piston aircraft.

The bigger issue is how the policies work together

A common mistake is evaluating each policy separately.

You may have a general liability policy, property coverage and workers’ compensation and still have significant gaps between them.

For example, your general liability policy may respond to certain third-party property damage but not to an aircraft that has been entrusted to your care. That exposure may require hangarkeepers legal liability.

Similarly, an aviation liability policy may not cover a pollution event arising from a leaking fuel tank. A separate environmental policy may be needed.

Insurance should therefore be evaluated as a program, not simply as a collection of renewals.

Contracts can change what you need

Airport leases, service agreements, vendor agreements and customer contracts can require particular limits, additional insured status, waivers of subrogation or other insurance provisions.

That means the question is not simply:

“What insurance do FBOs usually buy?”

A better question is:

“What exposures and contractual obligations does this particular FBO or MRO have, and has each one been addressed?”

Review the operation before choosing the coverage

At Aeris Insurance Solutions, we believe the insurance discussion should begin with the operation itself: what you do, what you own, what customers entrust to you and what liabilities you assume.

Coverage availability, definitions, exclusions and limits vary by insurer and policy.

Concerned that your current program may have gaps? Request a Coverage Risk Review from Aeris Insurance Solutions.

We discuss this topic in more depth in the Airport and Aviation Business Insurance Fundamentals book.