With the complexities of managing an aviation garage, such as aircraft maintenance and storage facilities, aviation garage keepers face unique risks when handling customer aircraft. From damage during repairs to unforeseen theft, specialized insurance coverage is essential to safeguard both your business and the aircraft entrusted to you.
Here are the most important insurance coverages for aviation garage keepers.
Hangarkeepers liability insurance provides coverage for physical damage to customer aircraft while they are in your care, custody, or control. This coverage protects against risks such as fire, theft, vandalism, or accidental damage that may occur while the aircraft is stored in your hangar or undergoing maintenance. It’s critical for aviation garage keepers to protect against financial loss due to damage to customer aircraft on their premises.
Hangarkeepers liability insurance provides coverage for physical damage to customer aircraft while they are in your care, custody, or control. This coverage protects against risks such as fire, theft, vandalism, or accidental damage that may occur while the aircraft is stored in your hangar or undergoing maintenance. It’s critical for aviation garage keepers to protect against financial loss due to damage to customer aircraft on their premises.
Product liability insurance is vital for aviation garage keepers who perform maintenance or repairs on aircraft. This coverage protects your business in case a maintenance error or faulty part results in an incident after the aircraft leaves your facility. If a repair mistake leads to an accident or damage, product liability insurance helps cover the costs of related claims, providing peace of mind for both your business and your clients.
Property insurance protects the physical assets of your aviation garage, including buildings, tools, equipment, and supplies. This coverage safeguards your assets against risks like fire, vandalism, theft, and natural disasters, ensuring that your business can recover financially if any of these incidents occur. Property insurance is essential to keep your operations running smoothly.
If a covered incident temporarily halts your operations, business interruption insurance helps replace lost income and cover ongoing expenses until you can resume normal operations. For an aviation garage, unexpected interruptions could mean significant financial losses, as aircraft repairs and storage are high-demand services. This coverage provides financial stability during unexpected downtimes.
Workers’ compensation insurance provides coverage for employees in case of work-related injuries or illnesses. Aviation garages often involve high-risk work environments where injuries can occur, such as heavy lifting or working with complex machinery. Workers’ compensation insurance covers medical expenses, rehabilitation, and lost wages, protecting both your employees and your business from the financial impact of workplace injuries.
As aviation garages increasingly rely on digital systems for inventory, customer records, and billing, cyber liability insurance protects against the risk of data breaches, hacking, or cyberattacks. This coverage helps cover the costs of data recovery, system repairs, legal expenses, and potential liabilities related to a cyber incident, ensuring your business can maintain data security and customer trust.
Garagekeepers liability insurance is a form of commercial property insurance designed for businesses responsible for storing, servicing, or handling customer-owned vehicles. In the aviation industry, this policy is critical for companies providing hangar space, maintenance, or other ground services for customer aircraft, as it covers damages that may occur while the aircraft is in the care, custody, or control of the business. This specialized coverage addresses the unique risks of high-value aircraft, ensuring that service providers are financially protected if an aircraft sustains damage due to theft, fire, vandalism, or accidental mishaps.
Risk Mitigation: Aircraft are high-value assets with unique vulnerabilities, and garagekeepers insurance protects against the significant financial exposure a business faces if an aircraft is damaged. Given that aviation repair shops and hangars work with complex equipment, this coverage is essential.
Customer Reassurance: Offering garagekeepers liability insurance can help reassure clients of a company’s commitment to safeguarding their property, strengthening client trust and relationships.
Coverage for Unique Risks in Aviation: Unlike automotive garage policies, aviation garagekeepers insurance requires specialized understanding of aviation risks, including the high costs of repair, potential operational downtime, and specific liability concerns.
In aviation, garagekeepers liability must address both the high-value nature of aircraft and the regulatory landscape of the industry. Coverage often includes higher liability limits and additional protections to account for legal liability within aviation regulations and standards. Policies may also offer options tailored for hangar and maintenance operators, ensuring that coverage meets both garage keepers insurance standards and FAA regulatory requirements.
Fire Damage: Coverage includes repair costs if a fire breaks out in a hangar or repair facility.
Theft and Vandalism: This insurance protects against losses if an aircraft or its components are stolen or vandalized.
Collision Damage: Coverage may also extend to damages if an aircraft collides with another object on the ground while under a company’s control.
Other Incidents: Policies can cover damages related to storms, flood, or accidental equipment damage, depending on the insurer and selected options.
Insurer Specialization: Partner with insurers experienced in aviation and familiar with garagekeepers liability insurance specific to this industry to ensure comprehensive coverage.
Coverage Limits: Aviation businesses may need higher limits to account for the high value of aircraft and potential operational downtimes.
Regulatory Compliance: Work with providers who help ensure that insurance remains compliant with FAA and other federal regulations.
Risk Management Support: Seek insurers that offer proactive risk management guidance to help prevent costly incidents, a particularly valuable feature for aviation businesses.
While garage liability insurance covers injuries or damage arising from a business’s operations, garagekeepers liability insurance specifically covers vehicles—such as aircraft—that are in a company’s care, custody, or control.
Any business that stores or services customer-owned aircraft, such as aircraft maintenance facilities, hangars, and repair shops, should consider garagekeepers liability insurance.
Yes, common exclusions may include intentional acts, wear and tear, faulty workmanship, and damages exceeding policy limits. Reviewing these exclusions helps businesses understand the exact scope of their coverage.
Yes, insurers can often customize policies to account for specific aviation risks, such as coverage for high-value aircraft, ground damage, or other industry-specific risks.
Legal liability is a crucial aspect, as aviation businesses must comply with FAA regulations to ensure coverage. If a company fails to meet safety or operational standards set by the FAA, it may not be eligible for certain claims under garagekeepers liability insurance.
Garagekeepers liability insurance is a critical part of a risk management strategy for aviation businesses responsible for storing or handling customer aircraft. By covering costs related to damage, it provides financial protection, operational security, and a reputation boost with customers who entrust their valuable assets. Given the complexities of aviation, it’s essential to work with experienced providers who can tailor coverage to meet the unique challenges of this industry.
Aviation garage keepers must carefully manage risk with comprehensive insurance policies tailored to the unique hazards of handling and maintaining aircraft. By securing these essential coverages, aviation garage businesses can protect their assets, support business continuity, and deliver trusted services with confidence. Working with an experienced insurance provider ensures that your aviation garage is fully protected at every level.
