This is just a
quick comment about airports being added to your policy as an additional
insured.
There are few
states that require a person to buy aviation insurance. But the local community can require
coverage.
Not surprisingly
there is an increase in the airport requirements that are being asked for. These requirements use to be just to have the
airport listed as an additional insured.
The local community was worried about being protected if someone thought
you were liable for something. The airport wants a little extra protection from
your policy. But lately the requests
have been expanded to include request for additional named insured, higher
limits and even requirements for hull coverage.
Plus now there
are management companies that want to be protected too. So not only do you have
the city or county but the FBO and property managers. Each time you get asked
to add another person to your policy you are basically diluting your coverage.
Now you are protecting all those additional insured. No, it’s not the best
thing, but its also the way the business works.
You can’t get by without it.
Anyway, these
requirements have made the insurance companies start rethinking their
premiums. Each time they add or change
the policy they incur some cost. Some
companies add a premium for an additional insured that is not a municipality or
governmental agency. For example, naming
the FBO will probably cost you.
And if more and more requests are made for additional insureds, it would not be a surprise to see the rates increase to cover these cost.
And if they ask
for a Waiver of Subrogation… well that’s another story.
Labels: aircraft, aircraft insurance, airports, Aviation, aviation insurance, FBO