This article provides an overview of hangar keepers insurance, a crucial coverage for those in the aviation industry responsible for storing or maintaining aircraft.
Hangar keepers insurance or hangarkeepers liability is a type of liability insurance specifically designed to protect hangar owners and operators from financial losses arising from damage to aircraft stored or serviced within their facilities. It acts as a safety net in case negligence may occur on the part of the hangar keeper leads to damage to a customer’s aircraft.
Together, property and inland marine insurance provide comprehensive coverage for the physical assets, goods, and cargo associated with aviation operations, helping businesses mitigate risks, protect valuable assets, and maintain financial stability in the event of property damage, loss, or transportation-related incidents. These types of insurance are essential components of risk management strategies for aviation businesses and are often tailored to address the unique needs and challenges of the aviation industry.
While both inland marine insurance in aviation and motor truck cargo coverage provide coverage for goods and cargo while in transit, they serve different industries, transportation modes, and risk factors. Inland marine insurance in aviation is broader in scope and applies to goods transported within the aviation industry, while motor truck cargo coverage is specific to goods transported by trucks on roads and highways.
A typical hangarkeepers insurance policy covers the following:
This includes damage caused by hangar staff while moving the aircraft, roof leaks, falling objects, or malfunctions in hangar doors.
If a hangar worker accidentally damages an aircraft while maneuvering it, towing it, or performing maintenance (within the scope of the hangar’s services), the insurance would typically cover repairs.
Damage caused by leaks in the roof, malfunctioning hangar doors, or structural collapse of the hangar itself would be covered if it leads to damage to the aircraft.
If objects stored in the hangar fall and damage a plane, hangarkeepers insurance would likely cover the repairs.
If damage to the aircraft renders it unusable, the policy may cover the resulting loss of income for the owner.
Even after repairs, some damage can affect an aircraft’s market value. For example, a repaired wing might raise concerns for potential buyers. Hangarkeepers insurance may cover the difference between the pre-damage value and the post-repair value of the aircraft.
If a customer sues the hangar keeper due to damage to their aircraft while in storage, hangarkeepers insurance can cover legal fees and court costs associated with defending the lawsuit. This is crucial even if the hangar keeper ultimately prevails in court.
Some policies may extend coverage to damage caused during taxiing within the hangar facility or during test flights conducted by the hangar with permission.
This can cover theft of the stored aircraft or parts while in the hangar keeper’s care, although it may have limitations and might require additional premiums.
It’s vital to carefully review your specific hangarkeepers insurance policy to understand the exact scope of coverage and any exclusions that might apply. Don’t hesitate to discuss any questions or concerns by contacting us.
While hangarkeepers insurance offers valuable protection, it’s important to be aware of its limitations. Here’s a breakdown of some key exclusions:
Events beyond human control, like earthquakes, floods, tornadoes, or hailstorms, are typically not covered. For these perils, you might need separate property insurance for the hangar itself and potentially additional coverage for the aircraft depending on the owner’s insurance.
Basic hangarkeepers insurance likely won’t cover theft or vandalism of the aircraft. While some policies might offer limited coverage, it’s usually not enough. For comprehensive protection against theft and vandalism, the aircraft owner would likely need separate insurance.
If an aircraft malfunctions due to internal mechanical issues, hangarkeepers insurance won’t cover the repairs. This falls under the responsibility of the aircraft owner and their maintenance insurance.
If someone deliberately damages a plane stored in the hangar, hangarkeepers insurance won’t provide coverage. This would likely fall under crime insurance or be pursued through legal action against the perpetrator.
Hangarkeepers insurance is a must-have insurance coverage for any aviation business in the industry that deals with storing or maintaining aircraft for others. Here’s a breakdown of who should seriously consider this type of coverage:
These facilities provide a variety of services to aircraft owners and operators, including hangar space, fueling, maintenance, and ground handling. As FBOs typically store numerous aircraft for various clients, hangarkeepers insurance is crucial to protect them from liability in case of damage.
These businesses specialize in servicing aircraft, which often involves storing them for varying periods. Hangarkeepers insurance safeguards MROs from potential damage to the aircraft while under their care.
Even if you own a single private hangar and rent space to aircraft owners, hangarkeepers insurance is essential. It protects you from financial losses if the aircraft housed gets damaged due to your negligence or issues with the hangar itself.
Flight schools often have hangars to store their training aircraft. Hangarkeepers insurance ensures they are covered if a student pilot damages a plane while taxiing within the hangar facility (depending on the specific policy wording).
In essence, hangarkeepers insurance is beneficial for any aviation business that has a responsibility for the care and custody of client aircraft. It provides peace of mind by mitigating the financial risks associated with potential damage incidents.
Property and inland marine insurance policies offer numerous benefits to aviation businesses, including protection of assets, risk mitigation, business continuity, compliance requirements, financial protection, customized coverage options, and peace of mind. Investing in adequate insurance coverage is essential for safeguarding the financial interests and long-term viability of aviation businesses in a highly dynamic and challenging industry.
General liability insurance is a broader form of coverage that protects businesses from various types of liability claims, including bodily injury and property damage. However, it may not provide adequate coverage for damage to aircraft in your care.
Hangarkeepers insurance is a specialized liability coverage designed specifically for the aviation industry. It addresses the unique risks associated with storing and maintaining aircraft, offering more comprehensive coverage compared to a general liability policy.
In conclusion, hangarkeepers insurance provides critical protection for aviation businesses that store or service aircraft.
Like every insurance policy, there’s no one-size-fits-all answer to how much hangarkeepers liability insurance costs. The premium will vary depending on several factors specific to your operation. Here’s a breakdown of what can affect the cost:
Hangaring high-performance jets or larger aircraft will typically come with a higher premium compared to storing smaller private planes.
Property premises that are prone to natural disasters or with higher theft rates might see increased costs.
A history of claims can significantly impact your premium. A clean claims history can lead to lower rates.
The higher the value of coverage you choose for your hangarkeepers insurance, the more you’ll typically pay in premiums.
A higher deductible (the amount you pay out of pocket before insurance kicks in) can lower your premium, but it also means you’ll shoulder more cost in case of a claim.
The best way to determine the specific cost of hangarkeepers liability insurance is to contact a reputable insurance agent or broker specializing in aviation insurance.
Inland marine insurance in aviation provides coverage for movable property, goods, and cargo while in transit over land or water, including during loading, unloading, and temporary storage. Here’s what inland marine insurance typically covers in the context of aviation:
At Commercial Aviation Insurance, we can assess your individual needs, risks, and hangar operation to provide quotes from 30+ vendors. Get a free quote on hangarkeepers liability to find the best price and coverage for your business.
