Airport insurance requirements

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.

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